The latest forecast for the completion of the British Columbia Railroad to Dease Lake is the
fall of 1976.

KUTCHO CREEK ASBESTOS COMPANY LIMITED

No work was carried out on this property during the year and none is planned for 1974.

EXPLORATION

In New Zealand the company is exploring the Pyke Asbestos Property pursuant to an agreement
made with a subsidiary of Kennecott Copper Corporation of New York and Lime and Marble Limited,
a New Zealand company, as set out in the 21st Annual Report of the company.

A considerable amount of time and approximately NZ $200,000 of the NZ $400,000 commitment
was spent in constructing a rough road from Jackfish Bay along the Coast for a distance of sixty miles,
to a point about eight miles from the property. After a detailed reconnaissance in late October 1973
it was decided that further road construction would be too expensive and time consuming and that the
balance of the funds would be used to drive three adits, each of 300 to 400 feet in length, into the
South showing. The base camp was moved and by early January 1974 work had started on the first
adit. This operation is helicopter supported and will take about four months to complete.

No general exploration in British Columbia or the Yukon was carried out during the year and
none is planned for 1974.

RESEARCH

The company is continuing to conduct an active research programme pursuant to its contract
with the Ontario Research Foundation.

TRAINING

The training programme is continuing at the Cassiar Mine and is proving helpful. In spite of
this and other efforts at recruiting, a severe shortage of both tradesmen and labourers does exist and
is hampering production and maintenance schedules.

LABOUR

An agreement was signed on March 27, 1973 with Local Number 1, Canadian Mine Workers
union at the Clinton Mine. It is effective for the period December 1, 1972 to December 31, 1974.

ACKNOWLEDGEMENTS

The directors wish to acknowledge the loyal and efficient service given the company by the staff
and employees of all divisions.

On behalf of the Board,

J. D. CHRISTIAN,

Chairman and President.
Toronto, Canada,
March 14, 1974.

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