Cusac boosts interest in Montana project

With production about to commence at the Cruse Belmont gold- silver project near Helena, Mont., Cusac Industries (TSE) reports it has increased its participation from 30% to 50% in the property through an additional expenditure of $1.3 million(C).

Cusac’s partner in the property, an underground project with grades in the 0.64-oz-per-ton range, is Gulf Titanium (VSE).

Cusac says that under the new arrangement, it will not be paid back a premium on dollars spent as previously announced. Cusac’s total expenditure to date is about $2.8 million. A total of $6.7 million has been spent on the property since 1983.

Cusac says a production startup is expected at Cruse Belmont by mid-summer at a rate of 200 tons per day.

Earlier this year Gulf reported intercepting previously unknown structures at the property.

In other news, Cusac recorded net income for 1987 (after an extraordinary item) of $1.3 million (24 cents per share) on revenue of $2.5 million, compared with a profit of $1.2 million (23 cents per share) on revenue of $1.7 million the previous year.

The company’s major investment is a 30% net profits interest in the producing Table Mountain gold project, located near Cassiar, B.C., operated by Total Erickson Resources (TSE). Cusac briefly comments in its 1987 annual report that it is involved in a legal dispute with Total Erickson over the ownership of the gold produced from the mine’s first 12,000 tons of ore milled.

Among Cusac’s other property interests are claims in B.C.’s Toodoggone gold camp.