Cassiar Asbestos Corporation Limited

Report of Consulting Engineer

Mr. F. M. Connell, President,
Cassiar Asbestos Corporation Limited,
1001 Federal Building,

Toronto 1, Ontario.

Dear Sir:

I submit herewith my report covering developments at the mine up to Ist December, 1952, with
my recommendations for a future expanding production programme. Dr. Smitheringale, our consulting
geologist, has submitted a report on the ore reserves and Mr. T. T. Tigert, our manager, has reported on
the construction and development programme carried out during the year. These reports are attached.

HISTORY

The property was acquired by Conwest Exploration Company Limited in the fall of 1950. A
rough road was available from the Alaska Highway to the Mocassin Mines (approximately 60 miles).
We immediately started pushing this road on towards the mine and were able to complete about 10
miles before freeze-up stopped the first year’s operations.

The Cassiar Asbestos Corporation Limited was formed on May 17, 1951, and took over the claims
from Conwest. During the 1951 season, the road was completed from the Mocassin Mines to the deposit.
Two large samples of the talus material were subjected to spinning tests. These established the value
and quality of the fibre. Two diamond drill holes, one 160 feet vertical and one 300 feet horizontal, were
completed. The core recovery was very poor and it was impossible to use them to establish grade. There
was, however, ample evidence in the sludge that the underlying deposit carried a considerable amount of
fibre. Winter camps were constructed and some basic equipment, such as the Diesel Plant, was placed
on order.

In early January of 1952 active work was started on the planning and construction of a small mill
and ancillary shops to handle the asbestos talus material. This mill was completed and turned over for
the first time on November 29, 1952. The British Columbia Government provided funds for the improve-
ment of our road and it is our understanding that this work will continue next year. Of major interest
is the adit which was driven into the footwall of the deposit and which is described in detail in Dr.
Smitheringale’s report. The construction and mining programmes are detailed in Mr. Tigert’s report.

LOCATION

The property now consists of 40 claims and is located in the McDame Lake area of the Mining
District of Liard, in the northern part of the Province of British Columbia. The mine is approximately
86 miles by road southwest of Mile 648 (Watson Lake) on the Alaska Highway. From here the distance
along the highway to our Utah Camp warehouse near Whitehorse is 265 miles. The Utah Camp has a
siding and spur line from the White Pass and Yukon Railway, which runs between Whitehorse, Y.T., and
Skagway, Alaska (approximately 100 miles). From Skagway transportation is by Canadian Pacific
Steamships to Vancouver. An alternative route exists coming southeast from Watson Lake to railhead at
Dawson Creek.

GEOLOGY AND DESCRIPTION

The rocks underlying the claims are mainly sedimentary consisting of lower argillites and shales
overlain by limestone, which in turn is overlain by quartzite. Intruding the sediments along the valley
floor is a porphyritic granite and a basic rock which has intruded into the limestone. This latter rock
now altered to serpentine, contains many veins of cross-fibre chrysotile asbestos, and takes the form of a
dike varying in width from 200-600 feet. It strikes in a northeast direction across the mountain top.

Pace THREE