Cusac, a gold producer at Table Mtn.

I have been reading your newspaper for a year now and find it interesting and informative. The main reason for my subscription is to follow my favorite company, Cusac Industries. Every week I turn straight to the index to find Cusac listed and only once this year have I been rewarded. I would appreciate more frequent coverage on this company. E.P.S., Dayton, Ohio

You are not alone in your interest in Vancouver-based Cusac Industries, which, after many years in the exploration business, is now reporting net earnings from a 40% interest in a producing gold mine located near Cassiar, B.C.

President G. H. Brett tells us that Cusac recorded a net profit for 1986 of $1.7 million, with the revenues coming from the Table Mountain gold project which went into production in July of that year.

For the first six months of 1987, net earnings for Cusac amounted to $1.1 million. (Cusac’s partner in the venture — and the operator — is Total Erickson Resources.) Cusac, which has about five million shares outstanding and which trades on the vse and nasdaq in the U.S., has applied for a listing on the tse. Mr Brett said about 80% of the company’s stock is held in the U.S. Cusac was recently trading on the vse in the $2.70 range.

Cusac’s agreement with Total Erickson on the Table Mountain project calls for the former’s 40% net proceeds interest to drop to 30% once the payout reaches $3 million, a developmental stage Mr Brett said is near. The two companies are currently involved in a contractural dispute over ownership of gold produced from the first 12,000 tones of ore processed. Total production reported (N.M., Feb 2/87) for the six months the mine was in operation in 1986 was almost 24,300 oz gold averaging 0.94 oz per ton.

Among Cusac’s other mining projects is an interest in a placer gold operation in Alaska, where Mr Brett said 500 cu yd of material is currently being processed daily. Envisaged is a daily production rate of 4,000 cu yd. Also, Cusac is exploring 48 units (claims) in British Columbia’s Toodoggone area and is earning a 25% interest in property, also located in the Toodoggone area, belonging to Duke Minerals. And, Cusac is the lead company of a 5-company syndicate involved in property exploration in the United States and Mexico.