Cusac Gold Mines Ltd.
OTC Bulletin Board : CUSIF

Cusac Gold Mines Ltd.

June 08, 2007 09:00 ET

Cusac Signs Final Agreement Consolidating 1.04 Million Ounce Taurus Resource

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 8, 2007) - David H. Brett, President, Cusac Gold Mines Ltd. (TSX:CQC)(OTCBB:CUSIF)(FRANKFURT:DCB) (the "Cusac"), reports that Cusac has executed a definitive option agreement (the "Agreement") to acquire 46 mineral claims near Cassiar, British Columbia (the "Property") from American Bonanza Gold Corp. ("Bonanza"). The Property covers the majority of the Taurus Deposit that hosts a 43-101 compliant inferred resource of 1.04 million ounces of gold. The balance of the resource is held 100% by Cusac.

The Taurus Deposit is an advanced-stage exploration project estimated to host an inferred resource of 32 million tonnes grading 1 gram of gold per tonne. Work completed to date includes over 370 drill holes, significant metallurgical testing, extensive geophysical and geochemical surveys, and detailed scoping studies carried out by Cyprus Canada, Inc. in 1995 and 1996. The Cyprus data base, together with additional work by Cusac, Bonanza and others, will help Cusac in advancing the project rapidly.

"Cusac's vision is to develop the Taurus and surrounding Taurus II mineralization into a large scale gold mine capable of producing over 100,000 ounces of gold per year," said Cusac CEO, David H. Brett. "Our deep knowledge of the Cassiar Gold Camp, combined with a very extensive database of past work, provides Cusac with a firm foundation to quickly advance Taurus towards the feasibility stage."

The Agreement calls for Cusac to pay 1,500,000 common shares on closing, $6 million over 2 years ($1.5 million every 6 months), and $3 million upon completion of a positive feasibility study recommending production, or production, whichever comes first. A further 1,500,000 shares are payable in 2 years. In the event that the price of gold closes above US$800 per ounce for a period of 100 consecutive days, Cusac is to pay Bonanza an additional $1 million in 2 years and an additional $1 million at feasibility. Cusac may elect to complete the purchase within the first 12 months which will limit Cusac's payments to $6 million, 1,500,000 shares and $3 million at feasibility. Part of the Property is subject to a 2.5% net smelter royalty in favor of Sable Resources Ltd.

George Sanders, P.Geo, is a Qualified Person under National Instrument 43-101 for the technical portion of this News Release.

Cusac Gold Mines Ltd., in existence since 1966, is a gold production and exploration company focused on the Cassiar Gold Camp in northern British Columbia. Please visit our website for more information.


David H. Brett, 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)