Cusac brings Table Mountain to life

Ever since the Cassiar asbestos mine closed more than two years ago, this British Columbian town has been a shadow of its former self — until recently, that is when Cusac Industries (TSE) began breathing some measure of life into the area.

Situated 70 miles south of Watson Lake on the Watson Lake-Cassiar-Stewart highway, Cusac’s Table Mountain property has been in operation since April 20. Marty Sadd, project manager and a director of Cusac, says a combination of good weather, good luck and, admittedly, good management helped pre-production work go very smoothly.

Cusac started work on the property relatively late last year after arranging a US$2-million loan through a Swiss group in the fall. Pre-production work included mobilization of the camp, construction of a tailings facility and collaring of the decline to the West Bain vein before winter set in. Plans for production and development are geared toward the southern part of the property, a few miles south of the historic mining operations on Table Mountain.

Total production from the property between 1979 and 1988 amounted to 572,141 tons grading 0.42 oz. gold per ton, netting 226,900 oz.

Initial production this year is coming from the West Bain vein, which, prior to commencement of development work, was estimated to contain 36,000 tons grading 0.69 oz. gold.

Upon completion of a 700-ft.-long decline, development work on the first sub-level resulted in the discovery of a zone of high-grade vein material. The discovery, dubbed the West Bain Vein Extension, is at the west end of the sub-level.

Sampling over 200 ft. of drift in the Extension returned an average grade of 1.23 oz. over 5 ft. The vein pinches to a width of about 1 ft. at the end of the drift and grades about 0.31 oz., leaving the zone open to the west and at depth.

Matt Ball, chief geologist, says the Extension zone should add about 10,000 tons, grading 1 oz., to the West Bain reserve.

Cusac has completed a stope in the West Bain zone above the first sub-level, which, when combined with development muck, is providing feed for the mill. The existing 300-ton-per-day mill is a relatively simple beast. Jaw and cone crushers are followed by a ball mill and cyclone. Cyclone overflow reports to flotation while the underflow reports to a shaking table where about half the gold is recovered.

The most spectacular sight on the property during The Northern Miner’s recent visit was the shaking table in operation. The steady stream of yellow flecks, with numerous, smashed-out wafers of gold the size of uncooked oatmeal flakes, was nothing if not dazzling.

The gravity concentrate is sent to Vancouver, B.C., for refining while the float concentrate is sent to Trail, B.C.

Recoveries are running at 90-91%, with head grades averaging 0.55 oz., and Sadd hopes to boost these to 94% by adding another shaking table at the end of the ball mill. This is expected to boost the gold reporting to the gravity concentrate to about 60% of the total.

Sadd estimates cash costs, including development work, are running at about $150 per ton.

The only aspect of the project that could be construed as negative is the fact that reserves seem to be lacking, although the potential is not wanting. The East Bain Vein, separated from the West Bain Vein zone by a 600-ft.-long fault gap, contains an estimated 23,000 tons grading 0.5 oz. A further reserve of about 10,000 tons grading 0.3 oz. exists in three nearby surface zones where further work is planned for this summer.

The Michelle High Grade zone is seen by the company as having some of the best near-term potential on the property. Drilling on the zone in 1987 returned 6 ft. grading 3.7 oz., 10 ft. grading 12 oz., 5 ft. grading 0.84 oz. and 7 ft. grading 1.3 oz. in four different holes. Ball says the Michelle High Grade contains about 24,000 tons grading anywhere between 1 and 3 oz. Energold had planned to develop the zone using a 7,000-ft.-long adit, but pulled off the property with 2,000 ft. to go. Cusac plans to reach the zone from the old Eileen Vein workings, about 650 ft. from the target. (Energold could not use that route because of severe water flows, but Cusac reports that the workings are now bone-dry, likely as a result of drainage from Energold’s adit.)

Cusac President Guilford Brett notes that development work on the Michelle High Grade zone is estimated to cost about $1.2 million and will be funded out of cash flow, starting in the fall. (The company may consider raising additional equity to get development work started immediately.) In an effort to boost reserves, Cusac will spend at least $400,000 on exploration this summer — perhaps more, depending on results. Table Mountain is expected to produce at least 23,000 oz. at a cost of less than US$200 per oz. in 1994, and production is expected to increase substantially as a result of the West Bain Extension discovery. The company has about 14 million shares outstanding on a fully diluted basis and $400,000 in working capital. Besides the US$2 million owed to the Swiss group, Cusac owes Energold $500,000 (through a capped 10% net smelter royalty) as a final payment on the property.