Cassiar Aspestos Corporation LiMiTED
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successfully. The research work to date has been encouraging and an investigation of
the commercial possibilities of our findings has started.

MINE

During 1963 the mine produced 756,574 tons of ore, of which 597,202 tons were
treated in the rock rejection circuit to eliminate 219,825 tons of rock. The resulting

377,377 tons of concentrate and 159,372 tons of ore, a total of 536,749 tons of mill feed
were delivered to the mill by the tramline.

Stripping operations removed from the pit and peak 2,824,197 tons of waste rock
at a cost of $2,442,363. Stripping costs are being amortized and are currently being
written off at a cost of $1.68 per ton of ore mined.

Ore reserves remain substantially unchanged, with sufficient ore indicated within
the presently planned pit limits for 29 years production at the present rate.

The installation of the new crushing plant at the mine was completed early in
December. The 42” x 48” deep frame crusher is capable of handling larger pieces of
rock than the old crusher and has overcome many of the problems encountered when
crushing frozen ore during the winter months. As a result, lower crushing costs are
anticipated.

A 4¥% yard electric shovel was purchased and delivered in November and is
expected to be in operation early in March. It will provide the additional capacity now
required by the stripping programme, and will reduce the loading costs.

It is worthy of note that the tons of ore mined, the tons delivered by the tramline,
and the tons of waste stripped are records for any year in the history of the mine.

The exploration programme in the Cirque Valley, started in 1961, was completed
by an additional 3,700 feet of diamond drilling. The drilling established the northern
boundary of the orebody previously indicated in the 5700’ level adit. Except for certain
sections overlain by mineable talus ore, the Cirque Valley will now be available for waste
disposal and will considerably reduce the haulage distance for waste from the north
end of the orebody.

MILLING

The mill treated a record 588,733 tons of mine ore and concentrate, for an
average of 1,610 tons per calendar day. The high standard of Cassiar products was
maintained. The quality of the AX fibre was improved and the price adjusted accordingly.
The existing market for cement grade fibres will make it profitable to produce, from
current tailings, an additional grade somewhat shorter than the AX fibre. Bulk mill
tests indicate that 10,000 to 15,000 tons of fibre to be known as Cassiar AY can be
recovered annually. The necessary additions to the mill to produce the new grade will
be completed in the fall of 1964. A high quality asbestos cement fibre, Cassiar AD,
introduced early in 1964, is a re-classification within our existing grades to meet market
requirements and does not represent additional fibre recovery.

Pace Four

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