There are indications that the new allowable fibre level
of 5 fibres per cubic centimeter may, in the future, be
lowered to 2 fibres per cubic centimeter. While your Com-
pany will do everything possible to meet future regula-
tions, it should be recognized that it is not certain that
practical technology will be available to support a 2 fibres
per cubic centimeter standard.

Clinton Mine

Ore Mined

During the year 1,947,078 tons of ore were mined at
Clinton Creek in the Yukon Territory. Of this total
1,083,160 tons came from the Porcupine orebody and
863,918 tons came from the Snowshoe orebody. From
the ore mined, 539,625 tons were rejected to tailings in the
primary concentration plant, leaving 1,407,453 tons of
concentrate for mill processing. The recoverable grade of
ore mined in 1975 was 5.85% compared with 4.37% in
1974.

Fibre Refined

During the year Clinton Creek Mine produced 113,928
tons of fibre after treating 1,385,648 tons of concentrate.

Waste Removal

During the year, a total of 4,586,165 tons of waste were
removed at the Clinton Mine at a cost of $3,328,129. Of
this total 3,757,015 tons were removed from Porcupine
Hill and 829,150 tons from Snowshoe Hill. Waste charges
against ore mined during 1975 averaged $1.92 per ton
compared to $2.47 in 1974. The difference is attributable
to the higher percentage of Snowshoe ore mined in 1975
which carried a low waste to ore ratio.

Ore Reserves

The ore reserves at Clinton Mine as at December 31, 1975
are as follows:

Probable Ore Possible Ore

Porcupine Orebody....... 3,263,300 170,200
Greekt@rebody == .5.5...: 138,109 Z9Saiol
Snowshoe Orebody....... 1,372,000 465,000
4,773,409 928,931

The mine is expected to close sometime in 1978 when the
ore reserves will have been depleted.

Environment

A programme to gradually improve environmental control
at the Clinton Mine is being carried out and regular dust
sampling has shown encouraging results. However, while

the average fibre counts are below the Yukon Govern-
ment’s recently introduced limit of 5 fibres per cubic cen-
timeter, there are isolated areas where dust counts are still
above the allowable limits. Work is currently underway to
improve these areas and employees are required to wear
respirators where dust counts are in excess of the limit.
A new 100,000 cubic foot per minute air system was
designed as an addition to the existing air system and
installed in the Clinton Creek mill during the latter part of
1974. After one year of operation, performance of this
new facility has made a major contribution to the im-
provement of environmental conditions within the refin-
ery.
During 1975, a Yukon Territorial Government Task
Force was established to determine standards for airborne
asbestos within the Yukon and has recommended that the
present Territorial standard of 5 fibres per cubic centimeter
be reduced to 2 fibres per cubic centimeter by July 1978.

Transport Division

Of the 197,432 tons of fibre produced at the Cassiar and
Clinton Mines during 1975, over 108,000 tons were
transported from mine to railhead under contracts ar-
ranged by your Company’s Transport Division. The re-
maining tonnage, in excess of 89,000 tons, was trans-
ported from mine to railhead by the Transport Division’s
own trucking facilities.

Territorial Supply Company Limited

The operation of Territorial Supply Company Limited (a
wholly-owned subsidiary of Cassiar) which includes Inter-
national Harvester Truck and Equipment Sales, has been