Not knowing the specifics of your installation, I would have to say, "Yeah, that may be normal".
As you know, as soon as air starts flowing in a pipe or air line the frictional pressure drop in the piping will eat up a lot of your working pressure between compressor and nozzle. Also, consider that when you pull the trigger you are essentially opening a 1/8" to 1/4" hole in you air line with little restriction. The air rushes out and down goes your pressure. Lastly, a 6hp compressor (I assume it's single stage since you say it is an old CH machine) will have to work pretty hard to maintain any decent sandblasting pressure. And sandblasting uses a LOT of air.