FREE STOCK PROFILE - Cusac Gold Mines; 
 

WATCH VIDEO: Watch the Cusac Gold Mines corporate video.
 

The Main Body of Cusac Gold Mines Profile (below) Was Mostly Last Updated on approx. Jan. 5/07;

Cusac Gold Mines is a Canadian Jr. Gold Mining company... it's head office is located in Vancouver, BC, Canada... Cusac's mining operations are based exclusively within the borders of Canada... Cusac is listed on the Toronto Stock Exchange under the symbol "CQC"... (Yahoo Finance Quote: CQC.TO)

Cusac is primarily a turn-around story... Cusac was a "former" Junior Gold producer that ceased production in approx. 1997/98 when the Gold price drifted below the $300 per-oz. level... Cusac has had it's mine in maintenance mode since the 97/98 shut-down... however, with Gold prices improving and firming in recent years, just last month (on Dec 18, 2006) Cusac announced it had re-commenced commercial Gold production.

The 1997/98 shutdown of Cusac's Gold mine sent Cusac's shares into the gutter for approx. the past 10 years... but now, with the company only just re-commencing production last month... combined with the prior 10 year absence of production, which resulted in a depressed share price, has actually created an excellent buying opportunity at current levels for patient value investors IMO because; as the company gets its Gold production back up to historic levels, cash-flow values will grow and eventually approach intrinsic values, which is far above current share price levels.  

Pictures of Cusac's mining facilities during shut-down and prior years ...

Because Cusac is a "former" producing Junior Gold mining company, the company already has substantial mining infrastructure already in place, which is very important, because; if you follow the Gold industry closely, you'll know that simply obtaining heavy-equipment for mining in any volume right now can be very difficult and slow moving... many small mining companies trying to start or grow production right now are experiencing delays simply due to the lack of readily available mining equipment.

Cusac claims its mining facility called the "Table Mountain Gold Mine" is debt free... and that the mine has it's own 300 ton-per-day milling facility.

Cusac indicates on it's web site via a March 2005 feasibility study located in Table:4, called "Historical Mill Performance" (shown below)... that historical averages from the company indicate it averaged production of 20,420 Gold ounces per year... with the lowest rate of production per year at 8,331 Gold ounces, occurring during it's last year of operation in 1997... and the company achieved a maximum yearly production of 36,847 Gold ounces during 1987... further, it's recently been reported in the Northern Miner magazine that Cusac plans a longer-term expansion to approx. 100,000 Gold ounces per year production...

From a resource expansion point of view; Cusac controls a large approx. 143 sq. km land position in the Cassiar area of British Columbia, Canada... the claims contains multiple exploration targets... just one example of a possible future 43-101 resource expansion for Cusac  includes an early stage discovery made last year where Cusac was found to own approx. 300,000 inferred Gold ounces in a potion of it's claims that have been identified as a potential future open pit mine... also, a precious metals exploration company (American Bonanza Gold Corp.) which owns land directly adjacent to Cusac's claims discovered approx. 700,000 inferred Gold ounces last year on their land adjacent to Cusac's claims... Cusac is currently advancing exploration efforts on multiple targets within their claims... this audio interview from 2006 provides some insight directly from Cusac's CEO in regards to some of his plans, developments, and exploration projects for the company.

Another benefit for Cusac investors that's often overlooked in it's level of importance is; Cusac's mining operations are located exclusively within the borders of Canada... which lowers the companys "country & political risk exposure" mitigating numerous risks inherent when operating a mining business in a 3rd world country.

Now that Cusac has just re-commenced commercial Gold production... an investor in Cusac gets investment exposure to both "production" and "exploration" potential. The importance of having exposure to true "production" cannot be underestimated when investing in the junior mining sector because;
As I've indicated in some of my other stock profiles... only approx. 1 in 1,000 exploration projects are eventually proven to be feasible enough to make it to production... mining "exploration" companies that cannot eventually make it to production, a merger, or a buy-out, eventually faces dilution, bankruptcy, dormancy, re-organization, or similar value-destroying fates.... so becoming a true "producing" company is a major accomplishment in the life of any mining company, which ultimately separates it from the hundred's of "exploration" companies into just a handful of true "producing" companies...

Very, very few companies ever make it to production...

Only approx. 1 in 1,000 exploration projects make it to production. Chart Source: Eric Hommelberg & Partners at Golddrivers.com

For an investor with some patience, I believe there are strong returns possible for value investors on Cusac's shares from the current share price level within the next 12 - 24 months... providing that Cusac mngmt. can execute their business plan reasonably, and bring the mine back to near full production levels, thus resulting in an eventual realization of it's intrinsic value. Strong returns from current levels may also be possibly sooner should the price of Gold head strongly higher in the nearer term.    

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