Cassiar Asbestos Corporation Limited

Report of the General Manager

Mr. F. M. Connell, President

Cassiar Asbestos Corporation Limited
Suite 1001 - 85 Richmond Street West
Toronto 1, Ontario

Dear Sir:
I submit herewith my report on operations during the fiscal year ended September 30, 1959.

MINE

The 1959 mining season commenced April 6th and ended on November 6th, 1959. During this
period 359,914 tons of ore and 1,339,249 tons of waste were mined and moved.

During the fiscal year 312,759 tons of ore were delivered to the millsite and 1,130,877 tons of
waste were removed. Mining costs were comparable to the previous year.

The waste stripping to release ore for mining proceeded on schedule and expenditure for the
fiscal year amounted to $779,358.

DEVELOPMENT

Work in the adit on the 5700 foot level, 300 feet below the first adit and 600 feet below the
outcrop, was continued during the year, and to date has indicated a very substantial increase in ore
reserves. Approximately 5,000 feet of drifting and crosscutting was done. Ore was first encountered
at 945 feet in the adit, vertically below the northern end of the drift on the 6000 foot level. The drift
was driven south in good ore for 1,400 feet. A crosscut, No. 5703, was driven east and west from the
main adit at a point 1,000 feet from the portal, and was in good grade ore for 560 feet. On the hanging
wall side, a drift north from the 5703 east crosscut was driven 600 feet. The first 230 feet was in ore,
and the balance in fibre-bearing serpentine. Additional crosscuts have been started and will be continued
next season to define the boundaries of the ore zone at this horizon.

The ore obtained from underground exploration is being milled and tested on a production scale.
The results to date indicate that both grade and quality are the same as the ore being mined at surface.
Based on the results of the work to date, the next stage of the development programme, including
additional stripping from the southern end of the orebody, is being planned, and additional mining
equipment has been placed on order to permit an increased rate of mining and stripping next season.

MILL

The mill treated 344,233 tons of ore, for an average of 943 tons per calendar day. At the close
of the ore mining season, there were 75,554 tons of dry ore in the dry rock storage building, and 144,510
tons of ore in the stockpile, sufficient to supply the mill at 1,068 tons per day until June, 1960.

Pace TEN