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Rocket fueled, Engines Ignited, Liftoff in ProgressRalph Kettell After today's phenomenal move in the precious metals and shares, particularly silver, the title of this piece could apply to many markets and/or individual shares. However, I have reserved it for a small to medium sized junior exploration company, soon to be a gold producer whose stock has been languishing for several months. The company in question is Cusac Gold Mines. They trade on the Vancouver exchange with symbol CQC.TO and on the bulletin board the ticker is CUSIF (CUSIF.OB on Yahoo). Cusac Gold Mines has a market cap of just under $10M USD. Their primary property is the Table Mountain Mine in Northern British Columbia. The Mine has had past production of 400,000 ounces. Cusac has been working the area since 1966 so they are not a newcomer to this business in any sense. They are working on plans to mine some existing reserves at the site to bootstrap mining operations. They have at least 25,000 ounces which could be mined to raise precious capital to fund operations. At $400 gold, which could happen tomorrow, this will gross them $10M USD. At a listed cash cost of $185/ounce, this will provide them with over $5M USD of cold hard operating cash. Since this was an operating mine in the recent past, Cusac has a 300 ton per day mill with all necessary infastructure on location and ready to go. The mine is currently on care and maintenance awaiting higher gold prices. The wait is OVER. While patiently biding their time for the past few years, they have done some exploration, drilling, and planning for the day when they can begin to mill again profitably. In the process, they have proved up some more ounces and improved the grade somewhat. As is typical of most high grade mines, the old timers discovered an outcrop and followed the vein down and around until it ran out. A systematic exploration of the surrounding ground was never performed, because the operators just didn't have to. They had enough reserves at the time so they didn't explore, they mined. In many vein systems, there are parallel vein structures. Where there is one crack in the ground there may be several more parallel to it. The other veins can be hidden, because the geologic events and weathering never exposed them. It is therefore not only possible, but likely that Table Mountain has similar veins nearby which have never been touched. This would likely mean that there is at least as much gold on the property still to be mined as has been mined up to present. Cusac also controls some other ground near the Table Mountain Mine, and has a Platinum Project in Southern British Columbia. If you want to find out more information on these Joint Ventures, check the website at www.cusac.com. The punch line of the story, however, is not in the interesting history of the site or the infrastructure that Cusac has in place. No what attracted my attention to them is the lack of positive action in the stock price for the past several months. I had played this stock about a year ago, buying in at levels ranging from $0.14 to $0.20 and selling out between $0.30 and $0.40, thus doubling my money. I had watched the stock back off from its highs around $.45 for quite some time, but was genuinely surprised to see it down near $.20 a couple of weeks ago. Therefore, I began to watch the stock more closely and started to accumulate a bit of it. When gold took off on Wednesday, so did Cusac. Cusac has not cleared all its hurdles as can be seen on the stock chart. It has formed a nice long term pennant and looks to be ready to burst out any day now. You will also notice, however, that there is a bit of resistance around $0.28. Once that level is cleared Cusac will be off to the races. In the last major run-up, the stock went from $.05 to $0.45, before making a 50% retracement. If the stock does a repeat look for a move to $1.75, but I usually don't get that greedy. I will be quite content to see Cusac around $1.00. Should you decide to take a flyer on Cusac, don't be a pig. You know the old adage, Bulls make money and Bears make money, but pigs get slaughtered. When the stock goes up over 100% sell enough to get most of your initial capital back. It is just good common sense to take some profits and then let the rest of the position ride risk free. Go, gold, go!
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