would fully support the mine’s short term and long term ore requirements. This re-assessment resulted in the de- velopment of acomprehensive plan in 1974 to accomplish the following: (a) Increase waste removal in order to eliminate a backlog which had accumulated over a number of years. (b) Stabilize the footwall side of the open pit by chang- ing its angle of slope from 47° to 37°. (c) Design and construct a new pit access road on the footwall side of the open pit. (d) Expand the bench widths to permit the introduction of larger and more efficient shovels and trucks. (e) Establish wider and more serviceable catchments on both the hanging wall and the footwall side of the pit in order to provide safer working conditions. The flattening of the overall slope of the footwall from 47° to 37° is proceeding on schedule. This project will pro- vide for a new access road and overcome possible safety hazards which might arise from unstable rock conditions encountered in this area. The work is being done under contract and will eventually total 10,000,000 tons. The cost will be written off against the remaining 21,000,000 tons of ore. On the hanging wall adequate safety catchments have been re-established and ore mining is currently underway in the pit bottom. A new waste phase with wider operating benches has been started. The overall hanging wall slope will be reduced from 45° to approximately 40° and will involve an accelerated rate of waste removal during 1976 and 1977. Waste mining costs have not yet been reduced to antici- pated levels due to confined operating conditions and problems with equipment maintenance and availability. The cost of removing 12,151,953 tons of waste during 1975 was $16,482,253. The rate of amortization which was $5.00 per ton of ore mined in 1974, was increased to $7.50 per ton, as reported in the June 30 interim state- ment. This increase has proven to be inadequate and waste costs have been charged to operations for 1975 ata rate of $9.00 per ton of ore mined. This rate is determined by dividing the estimated total cost of waste removed by the total tons of ore that are made available. The amount charged to operations during the year was $8,412,786. Environment During 1974, your Company formulated a comprehen- sive plan to reduce the dust counts in the Cassiar mill. This plan includes the up-grading of the existing 500,000 cubic feet per minute bag house, plus the installation of a system to provide an additional 480,000 cubic feet of air per minute scheduled to be on stream in 1977. A central vacuum system, together with the enclosure of all dust producing equipment, will aid in keeping working areas clean, which in turn will assist in keeping airborme fibre and dust levels down. In the mine crushing plant, an improved dust collection and vacuum cleaning system is being installed. To prevent the carrying of fibre into the community by people, a new change house and laundry will be con- structed. After its completion, employees will be required to change from work clothes to non-working clothes be- fore leaving the facility to enter the community. In March 1975, the Company was advised by the Mines Inspection Branch that the long established asbestos dust standard of 5 million particles per cubic foot had been changed to the far more stringent standard of 5 fibres per cubic centimeter. Unfortunately, the introduction of these new standards did not provide any time allowance for implementation. Hence the Mine at Cassiar had insuffi- cient time to comply and the conditions of cleanliness in the concentrator and refinery were found to be at an unsatisfactory level. As a result, it became necessary to stop operations for a three week period in March 1975 to improve the standard of cleanliness. Employees are re- quired to wear respirators in the areas where dust and fibre counts are in excess of the standard limit. The new Cassiar tailings agglomeration system in the refinery is operating well except during the very cold months. It is hoped that the insulated cover over the new tailings belt currently being installed will permit year round operation of the agglomeration system.