Cassiar Asbestos Corporation Limited

Report of the General Manager

Mr. F. M. Connell, President,

Cassiar Asbestos Corporation Limited,
Suite 1001 - 85 Richmond Street West,
Toronto 1, Ontario.

Dear Sir: =

I submit herewith my report on operations during the fiscal year ended September 30, 1960.

MINE

During the fiscal year, 471,561 tons of ore were mined and 1,949,282 tons of waste rock were
removed in stripping operations. Mining costs for the year compare favourably with those of the
previous year. The stripping programme to release ore for mining proceeded on schedule in accordance
with the long-term mining programme at a cost for the year of $1,245,868.

In the spring of 1960, a 4-foot crusher and two screens were installed between the primary
crusher at the mine and the head of the tramline to effect a partial concentration of the ore prior to
delivery to the tramline. During the time this equipment was in operation, 78,793 tons of rock were
discarded from the ore mined. A total of 392,768 tons of ore and concentrate was delivered to the
millsite. The rock rejection ahead of the tramline has improved the effective capacity of the tramline
and storage at the mill by eliminating approximately 25% of the material handled.

The results to date from the work in the adit at the 5700 foot elevation indicate that the
dimensions of the orebody and the grade and quality of the ore compare with that being mined currently
at an average elevation of 6,100 feet. Approximately 994 feet of drifting and crosscutting, and 3,224
feet of diamond drilling were done during the year. This work is continuing, and while final calculations
of grade and tonnage are incomplete, sufficient tonnage has been confirmed to assure a long life for the

mine and to justify a long-term stripping programme.

MILL

The mill treated 457,379 tons of ore, for an average of 1,250 tons per calendar day. Research
on the treatment of asbestos fibres and mill techniques is being continued on an active basis, and where
applicable, improvements are incorporated in the mill circuit from time to time.

The high quality of Cassiar Asbestos fibre has been maintained, and it continues to be well

received in the we-'d markets.

Pacr TEN