Cusac Gold Mines Ltd.
OTC Bulletin Board : CUSIF

Cusac Gold Mines Ltd.

October 30, 2007 16:55 ET

Cusac Gold Mines Ltd.: Taurus, Taurus II, Table Mountain Mine Update

New Taurus II and East Bain Decline Assays

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 30, 2007) - David H. Brett, President, Cusac Gold Mines Ltd. (TSX:CQC)(OTCBB:CUSIF)(FRANKFURT:DCB) (hereinafter "Cusac" or the "Company"), provides the following update on the Cassiar Gold Property and other corporate matters.

Taurus Deposit

During the year Cusac completed 1,639 meters of drilling at Taurus and re-logged and sampled 1,850 meters of unsampled historic drill core. This work has allowed company geologists to embark on a re-interpretation of the geology of the deposit. Significant drill intercepts were encountered that confirmed broad zones of low-grade gold mineralization containing higher grade sections within the Taurus deposit. A total of 171 HQ core samples weighing a total of 530 lbs have been sent to Process Research Laboratories in Richmond BC for metallurgical analysis to determine gold recovery rates under a variety of extraction methods, including gravity, floatation, and cyanidation.

Once all the assay data is available, the Company will proceed to generate a new resource calculation of the Taurus Deposit to determine if the new drilling improves the grade and resource confidence level of the deposit. Additionally, the Company believes that the Taurus Deposit may be amenable to selective mining, whereby waste rock within the pit can be removed in the stripping process, resulting in a higher grade mill feed. In other words, the Taurus 1.04 million ounce gold resource may be contained in fewer tons at a higher grade minable with a higher strip ratio. The new resource calculation will give consideration to this possibility.

Table Mountain Gold Mine

Winterization of the Table Mountain Gold Mine was successfully completed to ensure a smooth resumption of development and mining activities in the spring of 2008. At that time, management has determined that larger scale pumping equipment and other measures will enable the Company to handle the volumes of water encountered in the East Bain Decline earlier this year.

As earlier reported, a number of small quartz veins were encountered in the East Bain Vein containing visible gold. Assays received from these veins confirm the visual observations, with grades of 1.56 ounces per ton over 0.2 meters and 1.42 ounces per ton over 0.2 meters in two of these quartz stringers. Although the veins are not of minable width, they certainly are a good indicator of pathways for gold bearing fluids and they may lead to possible new vein systems in the area.

Taurus II

The Company reports the balance of assay results from the Oro Vein system within the Taurus II Project area, located 2 KM south of the Taurus Project. The results are shown in the table below. Hole 07ORO-04 was collared 130 meters to the west and 07ORO-05 was collared 220 meters to the west of the previously discovered gold mineralization in the ORO vein. Hole 07ORO-04 was drilled to 188.7m depth and hole 07ORO-05 was drilled to 270.4 meters depth. Both drill holes intersected numerous zones of altered volcanic rock with quartz stringers directly along the strike of the ORO vein to the east, and the Blue Zone to the west. The style of mineralization seen in these two drill holes and the previously discovered Blue Zone is more indicative of the Taurus mineralization - wider zones of mineralized altered volcanic rock with numerous quartz stringers throughout returning multiple gram gold assays.

It is a distinct possibility that these gold bearing systems in the Taurus II area (south of the main Taurus Deposit) are hybrid gold bearing systems with larger high grade veins splaying out along strike into wider lower grade disseminated gold bearing systems. This model would put together the ORO vein and the Blue Zone as one system with a 1.5 km strike length of mineralization. Further infill drilling to test the gap between the ORO vein and the Blue zone is planned for the 2008 Exploration program.

Hole From To Au g/T m core
07ORO-04 157.28 167.50 1.07 10.22
07ORO-04 incl 158.30 166.90 1.19 8.60

07ORO-05 231.90 252.25 0.51 20.35

07ORO-05 incl 242.05 246.80 1.11 4.75

11% Secured Convertible Debentures

The Company has mailed a notice of meeting and proxy to the 28 holders of 788 Convertible Debentures (at $3,750 per Debenture and convertible into common shares of the Company at $0.305 per share at the option of the holder) representing a total principle amount of $2,955,000 seeking and extension of the maturity date from November 30, 2007 to November 30, 2008, a six month deferment of interest due at November 30, 2007, and an increase in the rate of interest to 14%. The meeting is scheduled for November 28, 2007.

George Sanders, MSc, PGeo, is the qualified person under National Instrument 43-101 for the technical portion of this news release.

About Cusac

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, and 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)