Casstar AsBEstos CoRPORATION Lintrrep Pace Four

The main asbestos showing occurs at the top of a mountain ridge, at an elevation of approximately
6,000 feet. Fibre-bearing outcrops occur over a length of 3,000 feet. Overlying this dike, and on both
sides of the hill, is a saddle-like mantle of asbestos talus. This asbestos talus is the result of frost action
which has penetrated the asbestos seams and freed the fibre from the rock. It varies in depth from 1 - 10
feet and has spilled over on the sides of the hill to create an area approximately 1,000’ x 1,000’ on the
West side and 2,000’ x 200’ on the East side, and is conservatively estimated to contain 280,000 tons.
All the evidence available suggests that this material truly represents the underlying deposit both as
to grade and quality. An adit has been driven into the footwall of the dike and to date has shown a
width of 251 feet of continuous ore, with an average back above the adit of 250 feet.

GRADE AND QUALITY OF FIBRE

Three separate samples of the asbestos talus on the West slope have been taken during the past
18 months. These samples were milled out in Ottawa in the laboratory of the Industrial Minerals
Division of the Department of Mines and Technical Surveys and were later subjected to full-scale spinning
tests by the Raybestos-Manhattan Inc., United States Asbestos Division, in Manheim, Pa.

The results of the first two tests indicated that the fibre from the talus material, while of good
quality, required a slightly different milling technique to retain its length. As a result Sample No. 3 was
taken on a carefully laid out grid pattern. This sample weighed 17,597 lbs. dry weight. It was milled
out in Ottawa and samples were submitted to three separate spinning companies in the United States.
These three companies ran extensive spinning tests against standard Canadian fibre. In all instances
they reported that the Cassiar product was the equal in recovery, strength and spinning quality to a
Canadian 3R.

At the time these tests were run we were interested only in the spinning grades and in arriving at
an average value for the asbestos talus material. This has now been established at 8% 3R or $30.00 per
ton. More recently we have become interested in high group 4 material and preliminary test work
indicates that by reducing the spinning grade recovery to 7%, we can produce an additional 3% of 4K.
This would raise the value of the talus in place to $38.75 per ton. As can be seen from Dr. Smitheringale’s
report, the adit has returned a similar recovery of the same grade. In addition to the above grades, a
limited tonnage of #1 and +2 crude can be hand-picked from the talus and rock. Some 40 tons were
hand-picked in this manner during the past summer.

It is of considerable importance to note that Cassiar fibre is a non-ferrous variety which has
not been found elsewhere on the North American continent except in small quantities in Arizona.
South Africa has been the only major producer. Non-ferrous fibre is required for electrical
insulation, such as cable covering on Naval vessels, and is regarded as a strategic mineral.

PRODUCTION PLANS

It was apparent from the beginning that there was sufficient asbestos talus material in evidence
to provide a mill feed for three years at an average of 250 tons per day. It was considered that such
a mill could be constructed at a reasonable cost and in reasonable time. Power consumption would
be low as no crushing equipment was required. The three-year period would suffice to develop
sufficient tonnage in the main body to warrant the further capital expenditures required to establish
the plant for a long life operation. On the strength of these assumptions, work was put in hand.
Mr. Tigert’s report covers this phase of the operation.

During recent months the results obtained in the adit have thrown a different light on the
picture. Dr. Smitheringale’s figure of 5,892,000 tons of ore in sight is ample justification for a
stepped-up production programme. The current world shortage of spinning and non-ferrous fibre
practically assures the marketing of these greater tonnages. There are many advantages to establish-
ing full-scale production at the beginning of an operation. One of the major factors is that we will
be able to produce Group 4 material almost as a by-product, which will considerably enhance our
earnings. The indications are also that the ore from the adit will produce an even more desirable
fibre which will be easier to grade and with which we can produce a consistently high-quality product.

PRODUCTION PROGRAMME
1. Beginning July, 1953
The chute, which will bring the talus material from the top of the hill to a loading point
at the base, will be in operation next spring. Mining will be confined to the four summer months.
We expect that we will be able to move 94,000 tons off the mountain for an average daily mill
feed of 150 tons per day. However, a favourable season could increase this figure to 80,000 tons
or 225 tons per day of mill feed.