Cusac drilling returns high-grade values

Drilling on the Table Mountain property in northwestern British Columbia returned high-grade gold values for Cusac Industries (VSE).

The program included infill drilling on the West Bain vein (Holes 93-1 to 93-5) as well as drilling on the newly discovered Bonanza zone, about 1,000 ft. west of the Bain vein (Holes 93-7 to 93-12).

Holes 93-7 and 93-12, which are separated by about 120 ft. along strike, intersected 1.3 ft. grading 10.02 oz. gold per ton and three feet grading 5.05 oz. gold respectively.

Cusac President Guilford Brett, though excited about the new zone, said it is still early to determine the significance of the results.

The company is filing a Statement of Material Facts to raise up to $500,000 to fund a minimum 3,000-ft. program. The drilling will test the Bonanza zone to the west as well as test other targets near the West Bain vein and Bonanza zone. No more infill drilling is planned on the West Bain vein and Brett said efforts to raise the $4 million required to bring that vein into production are continuing.

The company has received a commitment for US$2 million from a Swiss group contingent upon the balance of the funds being arranged, he added. Table Mountain already has a 300-ton-per-day gravity-flotation mill on-site and minable reserves in the West Bain vein are estimated at 35,000 tons grading 0.68 oz. gold plus a further 5,000 tons at 0.5 oz. gold. Operating costs are expected to be under US$200 per oz.

The following are drill results from the recent program:

Hole Interval Width Grade

(ft.) (ft.) (oz./ton)

93-1 125-134 9.0 1.08

93-2 149-151 2.0 0.20

93-3 91-104 13.0 0.32

93-4 109-111 2.0 0.14

93-5 133-135 2.0 0.12

93-7 288-289 1.3 10.02

93-10 312-313 1.0 0.56

93-12 276-279 3.0 5.05

288-290 2.0 0.69