Cusac joins Gulf Titanium in Montana gold-silver project

With Cusac Industries as a partner, it’s all systems go on the $3.l-million development of Gulf Titanium’s Cruse Belmont gold-silver project near Helena, Mont. Cusac is paying $1 million(US) to earn a 30% interest in the project and also has a 2-year option to buy 500,000 shares of Gulf at $2.25 per share.

Under the joint venture terms, Gulf Titanium has until Feb 1 to arrange an additional $2.1 million of project financing. If funding is not arranged, Cusac has the right to further finance the project and receive from production $2 for every $1 advanced.

Production is slated to begin in May, 1988. International Modular Mills is building a 200-ton-per-day modular mill, costing $1.3 million(US), of which they have agreed to accept 200,000 shares of Gulf Titanium at a value of $2 per share as partial payment.

Pre-production development work is proceeding and a 10×11-ft main haulage development decline has advanced 65 ft from the surface. The decline is to intersect ore zones at the 750-ft level which is about 550 ft below the current face of the decline.

Underground drilling continues to block out significant ore grade material at lower levels of the mine. All drilling this year has been below the No 6 level. Hole 19 at the 9.5 level over a 4-ft width graded 0.8l oz gold per ton; hole 30 at the 8.5 level over a 4.5-ft width graded 0.62 oz, and hole 31 at the No 10 level over 3.6 ft graded 1.45 oz.