Cusac closes Table Mountain

Milling operations at the Table Mountain property in northern British Columbia have been shut down so that additional reserves can be outlined.

Owner Cusac Industries (TSE) put the mine back into production this April, netting earnings of $1.4 million on revenues of $3.4 million for the nine months ended Sept. 30. The company mined and milled about 33,000 tons grading 0.41 oz. gold per ton, primarily from the West Bain Vein area, a few miles from an existing 300-ton-per-day gravity flotation mill.

Cash operating costs totaled US$177 per oz. (not including capital, administrative and financing costs).

Cusac had hoped to finance further development work internally but is now working to raise US$7.7 million through an offering of “preferred gold dividend stock” plus common share purchase warrants.

The company has about $900,000 in working capital and owes a further US$1 million on a loan it arranged last year to finance the restart of the operation.

Grades on the downdip extent of the West Bain Vein zone petered out, although President Guilford Brett maintains that the vein structure is still very strong. Brett expects to drill at least two more holes into the structure before pulling out of the area. He adds that the east lobe of the West Bain Vein has about 12,000-15,000 tons remaining at a grade of about 0.3 oz. gold per ton.

That material will be mined at a later date, along with reserves the company hopes to develop in the Michelle High Grade area.

Cusac recently reopened the Michelle decline and plans to drive it a further 650 ft. to intercept an area where previous drilling returned high-grade values ranging up to 12 oz. gold over 10 ft.