Michelle Highgrade lives up to name

Underground sampling at the Michelle Highgrade zone of the Table Mountain mine in northern British Columbia is returning multi-ounce values.

Owner Cusac Industries (TSE) has completed a decline to the zone, which was originally identified by underground drilling in late 1987.

Operators drove about 52 ft. along the strike of the zone, returning chip samples grading up to 32.25 oz. per ton across 6.5 ft. Based on chip sampling along the drive, as well as previously released drill results, Cusac estimates probable reserves in the zone at 24,000 tons grading 0.82 oz. gold, cut to 1 oz.

The zone remains open on strike and to depth, and Cusac President Guilford Brett says the decline will be deepened to ramp in about 40 ft. below the current level. Further development will include completing a 30-to-40-ft. raise above the current level in order to block out an oreshoot for mining.

The Michelle Highgrade is producing about 50 tons of development ore per day, and Cusac is blending it with the lower-grade Bain vein material for processing through the company’s 300-ton-per-day gravity flotation mill.

Remaining reserves in the Bain vein are estimated at 5,200 tons grading 0.26 oz. gold. And once mining starts on the Michelle, the mill should be operating at 150-200 tons per day.

Brett says the company is well-funded, with about $700,000 in the bank, no long-term debt and 16.5 million shares outstanding.

Meanwhile, results from drilling by Cyprus Amax Minerals (NYSE) on the northern portion of the Table Mountain property are still awaited.

Cyprus is earning up to a 70% interest in the ground, which remains separate from the underground mine area in which Cusac retains a 100% stake.

Cyprus also holds an option on adjacent ground, which is held by International Taurus Resources. The major is following up previous exploration work on the Taurus ground, which intersected a thick, low-grade, gold-bearing pyritic horizon.