Cusac Gold Mines Ltd.
OTC Bulletin Board : CUSIF

Cusac Gold Mines Ltd.

October 01, 2007 09:01 ET

Cusac Gold Mines Ltd.: Strong Water Flows Halt East Bain Decline

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 1, 2007) - David H. Brett, President, Cusac Gold Mines Ltd. (TSX:CQC)(OTCBB:CUSIF)(FRANKFURT:DCB) (hereinafter "Cusac" or the "Company"), reports that the Company has encountered extreme water flows from a fault intersected in the East Bain decline at its Table Mountain Gold Mine in Northern BC and has decided to stop the development project for the winter. With the onset of winter bringing substantial additional logistical challenges, management believes it prudent to target a resumption of the East Bain project in the spring of 2008. In the meantime, the Company will focus its efforts on advancing the 1.04 million ounce inferred resource at the Taurus Deposit.

"Cusac's mining crews and managers have made tremendous progress towards gold production at East Bain," said Cusac CEO, David H. Brett. "While this disruption is disappointing, I'm proud of our team's accomplishments and look forward to resuming East Bain operations in the spring and advancing the Taurus Deposit."

The face of the East Bain decline is currently 461 meters from surface and remains 150 meters from intersecting the East Bain Vein. The decline utilizes 233 meters of the pre-existing West Bain decline. 205 meters of the West Bain decline had to be widened to the required 2.7 X 4.3 meter dimensions to accommodate Cusac's 13 ton underground trucks. Part of the West Bain decline experienced poor ground conditions that required Cusac to bypass the area with an additional 78 meters of decline not included in the original mine plan. After the bypass, the decline was extended a total of 228 meters to its present location. Air, electrical and other services installed in the decline will remain in place pending resumption of work.

A number of infrastructure upgrades were undertaken during the East Bain project which commenced in May of 2007 which will enable a rapid re-start of operations. The original 7 km power line to the West Bain was fully restored enabling electrical services to the workings from the main powerhouse in the mill building. Mine electrical controls, shops, and water supply were placed at the portal. Mine ventilation, communications, fuel storage, and an electric compressor were installed. The central mechanical shop was moved to another shop building at the Cusac Portal, 1 km away from the East Bain portal, for quick response to mine needs. The 8 km of haulage road from the East Bain to the Mill was improved with new drainage ditching and other refurbishments.

Significant ongoing upgrades to Cusac's 300 ton per day mill have been accomplished as the East Bain project was progressing. The failing truck ramp access to the course ore bin was removed and replaced. The straightening of the ore bin tower that had been leaning will be completed within one week. The ore bin tower had been putting pressure on the conveyor system that provides ore to the primary crusher, preventing its operation.

Cusac Gold Mines Ltd., in existence since 1966, is a gold production and exploration company focused on the 175 square km Cassiar Gold Property in northern British Columbia. The Cassiar Gold Property comprises the Table Mountain Gold Mine, a high-grade mine with a 300 ton per day mill and supporting infrastructure, the Taurus Deposit, an advanced stage bulk tonnage exploration project hosting an inferred resource of 1.04 million ounces of gold, and the Taurus II project, an early stage gold exploration area with potential for both bulk tonnage and high-grade deposits. Please visit our website for more information.


David H. Brett, MBA, President & CEO

Forward Looking Statements

There are forward-looking statements contained herein that are not based on historical fact, including without limitation statements containing the words "believes", "may", "plans", "will", "estimate", "continue", "anticipates", "intends", "expects" and similar uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, Cusac's exploration results, lack of revenues, additional capital requirements, risks associated with the exploration activity. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Cusac Gold mines Ltd.
    Investor Relations
    Toll Free: 1-800-670-6570 (Canada) or 1-800-665-5101 (USA)