CASSIAR ASBESTOS CORPORATION LIMITED

tramline and 75,009 tons by truck. The installation of the secondary crusher and dryer in the
rock rejection circuit increased its capacity by two-thirds and reduced the tailings loss by one-third.

On October 25, 1965, a major rock slide occurred below a waste dump to the south of
the mine. More than six million tons of rock and soil swept down the side of the mountain,
covering the main access road with forty feet of debris. The slide destroyed one tramline tower,
twenty buckets and a portion of the power line and tramline cables. Access to the mine by road
was restored and ore trucking was commenced within 24 hours. The tramline was inoperative
until December 10, 1965. The mill continued to operate without interruption with ore delivered
by trucks and from the dry rock storage and the ore stockpiles at the mill. The reserve stockpiles
will be restored to normal levels during 1966.

Stripping operations removed from the pit and peak 4,542,457 tons of waste at the total
cost of $2,715,778 or 60¢ per ton.

MILLING

The mill treated 613,404 tons of ore and concentrate at an average rate of 1,680 tons per
calendar day and produced 85,432 tons of fibre. Some additional equipment was added to the
mill to handle the increased production.

ASBESTOS WHARF — VANCOUVER HARBOUR

The new dock, warehouse and foreshore improvements, shown in the photograph included
in this report, were completed and put into service in October 1965 at a cost of $991,594. At
the same time, the White Pass and Yukon Route commissioned their new 6,000-ton container-
tanker vessel, the “M.V. Frank H. Brown”. An agreement between the company and the White
Pass and Yukon Route covering the use of Asbestos Wharf and the shipment of Cassiar’s products
was concluded. The facilities now available will provide a highly efficient warehousing and
shipping operation and will have sufficient capacity to handle the additional fibre that will be
forthcoming from the Clinton mine.

LABOUR

A shortage of both skilled and unskilled labour developed during the year. Overtime hours
increased from 10.3% in 1964 to 21.6% in 1965. The turnover increased from 125% to 175%.

A two-year labour contract, effective December 1, 1965, has been signed with Local 6536
of the United Steelworkers of America, which granted substantial wage increases and improved
benefits.

CLINTON MINE

During the year, additional higher grade ore at lower horizons on the hanging wall side
of the orebody was indicated by detailed diamond drilling in the area in which the previously
reported 12,300,000 tons of ore is located. The open pit, as presently outlined to a depth of 200
feet below the adit level, contains 14,545,000 tons of ore having an estimated value of $14.12
per ton and a waste to ore ratio of 3.3/1.

To the west of this area between hole CS-8 and CW-1 (see map in 1964 annual report),
two more cross sections at 400 foot intervals were drilled, and indicated a further 9.529,000 tons
of ore having a value of $12.40 with a waste to ore ratio of 6.54/1. Further drilling to outline
and evaluate the ore in this extension will be carried out during 1966.

Topographical mapping of the working areas was completed during the summer. The sites
for the plant and townsite were selected and the clearing and road construction were well advanced.
Building construction will commence early in April 1966, with completion scheduled early in 1968.
In the meantime, the construction camp required to accommodate 400 men is being erected.

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