Cusac Gold Mines Ltd.
OTC Bulletin Board : CUSIF

Cusac Gold Mines Ltd.

August 11, 2005 09:14 ET

Cusac Cuts 32 Metres Grading 2.03 g/tonne Gold at Taurus II; Initial Results Encouraging

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 11, 2005) - David H. Brett, President, Cusac Gold Mines Ltd. (TSX:CQC)(OTCBB:CUSIF) (the "Company"), reports that diamond drill hole 05BY-01, designed to test a wide zone of gold mineralization from the Backyard System, yielded strong gold values over significant widths, including a near surface intersection of 2.03 grams per tonne gold over 32 metres.

The Backyard System is one of a series of mineralized zones targeted for drill testing on Cusac's 100% owned Table Mountain Gold Property. Located immediately north of Hwy 37 approximately 3 km north of the Company's historic mining operations and 3.7 km south-east of the Taurus Project, on the adjacent property, the Backyard System was originally discovered by soil geochemical surveys and trenched by Erickson Gold in the late 80's.

Hole 05BY-01 was designed to test the down-dip continuity of the Backyard System. A 150.85 metre interval of the hole transected several zones of strongly altered and mineralized volcanic rocks similar to those encountered at the adjacent Taurus Deposit Results of composite assays from pyritized wall rock and vein stringer zones are given in the table below.

Drill Hole 05BY-01 Composites
From (m) To (m) Length (m) Au (g/tonne)
First Zone
56.00 88.00 32.00 2.03
56.00 58.30 2.30 14.43
65.90 88.00 22.10 1.59
Second Zone
103.95 145.80 41.85 0.69
114.60 142.10 27.50 1.00
Third Zone
167.65 193.15 25.50 0.90
167.65 170.50 2.85 2.46
182.60 193.15 10.55 1.38

In light of the encouraging results on the Backyard System, which is open in all directions, the Company is proceeding with step-out drilling along strike to the west. The Company has also completed two holes on the Somerville System, which encountered similar zones of quartz veining and alteration for which assays are pending.

"Our current exploration goal at Taurus II is to determine, by drilling, that gold grades exist over widths that can support a bulk tonnage operation in this new area of interest for Cusac," said Cusac CEO David Brett. "We believe we have accomplished this goal and will seek to extend our drill program to Phase III as soon as possible."

The technical content of this news release has been reviewed and approved by Dale A. Sketchley, M.Sc., P.Geo., a Qualified Person under NI 43-101. All assay results reported above were prepared by Acme Analytical Laboratories Ltd. of Vancouver, BC.


David H. Brett, President & CEO

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

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