McDame ‘deposit _ exploration by A. Burgoyne The McDame deposit is a very large, high grade, world-class asbestos deposit located below and to the southeast of the present Cassiar open-pit mine. As the Cassiar open-pit ore reserves will be exhaust- ed in 1991, the Company plans to continue exploration of McDame deposit to allow development to be com- pleted by that time, thereby ensuring an uninterrupted supply of ore to the existing mill. Diamond drilling in 1980 and 1981 defined a de- posit having a fibre value per tonne similar to the Cas- siar Mine. In 1983, a large, high magnitude, magnetic anomaly was found to extend southeasterly from the known McDame deposit indicating that the serpentinite hosting the McDame_ deposit was substantially larger than indicated by previous diamond drilling. The follow- ing year, a drill hole from the east side of McDame mountain intersected asbestos mineralization grading 7.6% fibre over 151 metres of core length. McDame Deposit 1415 meter Level Adit on west side McDame Mountain. In 1985, the first stage of a major underground ex- ploration program was successfully completed. This pro- gram was designed to access and bulk sample the deposit which extends from 250 to 350 metres below the sur- face of McDame mountain. An exploration adit 1,081 metres in length was driven at a cost of $2.0 million. The adit intersected 45 metres of long-fibre, chrysotile asbes- tos. The mineralized zone was bulk sampled and 1,073 tonnes were concentrated and processed through the Cassiar mill, producing 84.5 tonnes of fibre for a grade of 7.9% fibre. By the end of 1985, the McDame deposit was estimated to contain 62.0 million tonnes of high- valued long fibre similar to Cassiar Mine. A large exploration program for 1986 has just been initiated which will cost in the order of $4 million and consist of extensive drifting and underground diamond drilling. This exploration program will define the geom- etry, grade, quality and reserves of part of the deposit such that a detailed mine plan can be developed. For those readers interested in the more techinical aspects on the McDame deposit they are referred to the May 1986 Canadian Institute of Mining and Metallurgy (CIM Bulletin, Vol. 79, No. 889, P. 31-37) where Mr. A. A. Burgoyne, Vice President, Exploration of Cassiar Mining Corporation, has published a comprehensive pa- per on the eee and en of the McDame de- posits J ULY Cassiar Courier the Voice of Cassiar Country = A888 SEC TION Be Newt oundland Minister visits Cassiar From I. to r. Wayne Clark, Paul MacRae, Cassiar Mining Mine Superintendent, Louise Mercer and. Hon. Ronald Dawe viewing the pit at the Cassiar Mine. On Monday, May 26, Cassiar Mining Corporation and the town of Cassiar had distinguished visitors from the other side of the continent, the Honorable Ronald G. Dawe, Newfoundland Minister of Transport, accompanied by his wife Lynn, and Wayne Clark, Assistant to the New- foundland Minister of Transport, Louise Mercer, Official Visits Office, Expo 86, co-ordinated the trip and accompanied the visitors. They were to be joined by the Honorable Alex V. Fraser, Minister of Transport for B.C. and Al Passarell, M.L.A. Atlin, who had to cancel due to Premier Bennett’s resignation announcement. MESSAGE FROM THE PRESIDENT Since this is the first printing [ of the Internation- } al Edition of the [| Cassiar Courier, an introduction to Cassiar Mining Corporation _is appropriate. The re-organ- ization of Brinco Limited in 1985 resulted in the creation of Cas- siar Mining Corp- oration as a Pub- lic Company hold- ing, assets, includ- ing the operating Cassiar asbestos mine at Cassiar, J. D. Little British Columbia, the San Antonio Gold Mine in Manitoba, currently being explored, and interests in a number of oth- _ er mineral properties. Trading in Cassiar stock commenced on the Toronto Stock Exchange on December 19, 1985. It was interesting to note that although the initial trading was in the range of $0.75 to $1.00, early public recog- nition of the importance and value of the comapny moved the market price into the range of $1.75 to $2.25, As of June 1, 1986, some 6.7 million common shares are issued, of which Consolidated Brinco Limited holds 40%. The first Annual General Meeting was held in Vancouver on ~ March 26, 1986, and the ele Quarterly Report sued on Me 23, 1986. Ore reserves that can be mined efficiently over the long-term, together with a market for production at ac- ceptable prices, are the ingredients for a successful mining company. Cassiar Mining Corporation has both of these ingredients and, most importantly, the people and a plant that can take advantage of the opportunity. Ore reserves are available at the Cassiar Open Pit for processing over the next five years at a diminishing strip ratio, which means that lower mine costs can be expected. The successful exploration program on the adjoining McDame orebody, which is planned to continue in 1986 and 1987, will define the ore for processing in the present plant for many years to come on completion of mining in the open pit. The bulk sample obtained during the 1985 | exploration program was processed and the asbestos cem- ent and textile fibres obtained are presently being tested by potential customers. The 1986 Exploration Program on the McDame de- posit is underway and we look forward with great expect- ations to the results from this work. Short and long range plans for asbestos operations at _ Cassiar, and expected from the McDame deposit, are pre- pared on the assumption that there will always be some market for asbestos, and that the special characteristics of the Cassiar fibre will hold for it a place in that market. Many things have been done and will continue to be done to improve productivity, cut costs and to adjust product specificiations to the needs of customers. Yes, the prob- lems of product liability and the asbestos and health issue concern the Company, but evidence seems clear that with controlled use and current environmental controls, the benefits accruing from the use of asbestos far outweigh the disadvantages. | :