Cusac secures funds for Table Mountain

Financing to place the Table Mountain project back into production is largely at hand for owner Cusac Industries (TSE).

The company has secured a 14-month, US$2-million loan from a Swiss investor. The loan pays 8% in interest and includes warrants to buy one common share for each C$2 in principal outstanding at 96 cents per share over two years.

Table Mountain is near Cassiar, B.C., and includes a relatively new, 300-ton-per-day mill which shut down in late 1988.

Cusac bought the property early this year from Total Energold which, in turn, retains a 10% net smelter royalty to a maximum of $500,000.

The capital cost to develop reserves on the West Bain Vein system and get the mill up and running is estimated at $3.8 million, including working capital. Cusac does not expect having problems raising additional funds. The company is on the property, has completed winterizing the 40-person camp, and recently collared the 750-ft.-long decline to the West Bain Vein. Milling should begin next spring.

Gold production in 1994 is estimated at 23,000 oz. from the treatment of 36,000 tons of ore grading 0.69 oz. gold per ton.

Cash production costs are estimated at C$160 per oz.

The company is confident further surface and underground drilling will outline additional reserves.

On strike and about 600 ft. east of the West Bain reserve, surface drilling outlined a drill-indicated, possible reserve of about 22,000 tons grading 0.56 oz. This reserve is in the East Bain vein.

On completion of underground development, Cusac plans to conduct underground drilling from the eastern end of the West Bain vein. The objective is to locate the fault offset of the Bain vein, between the West and East areas. The company also plans to dewater the decline at the old Cusac mine to test a preliminary reserve of 25,000 tons grading in the order of 1 oz.