Cassiar Asbestos Corporation Limited

Report of the Directors

To the Shareholders,

Cassiar Asbestos Corporation Limited.

Your directors submit herewith the sixth annual report on the operations of your
company, including financial statements prepared as at September 30, 1957, your auditors’

report thereon and a report by Mr. J. D. Christian, General Manager.

The net profit for the year ended September 30, 1957 was $2,811,295 after charging
depreciation aggregating $862,419 and deferred development in the amount of $200,462.

Sales were well maintained and prices for fibre remained firm. Mining and milling
costs have shown satisfactory improvement and further reductions in costs are expected

as development of the mining area and other improvements become effective.

The expenditures on plant and equipment of $1,672,665 and on exploration and

development deferred of $545,635 are referred to in the General Manager’s Report.

Your company has an option to purchase from Conwest Exploration Company Limited
all its rights and interest in three asbestos properties (the Letain, the Caley and the Clinton
Creek). Initial development work by Conwest had indicated important showings of asbestos
ore on each property. The terms of the agreement are set out in the notes to the Balance
Sheet. The amount expended to the year end on this project was $229,398 including the
initial option payment of $100,000, the cost of the examination of the properties by
independent geologists and the camps, equipment and exploration charges at the Clinton

Creek property. The ore body on the Clinton Creek property is being developed by open

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