CASSIAR MINE Mining During the year 1,144,090 tons of ore were mined, of which 1,015,902 tons were treated in the concentrating plant to eliminate 229,745 tons of rock. The balance of 128,188 tons was high grade ore which is not amenable to this form of concentration. The resulting 786,157 tons of concentrate and 128,188 tons of high grade ore were delivered to the refinery, 389,521 tons by tramline and 524,824 tons by truck. The recovered grade of the ore mined was 8.11% compared to 9.10% in 1973 (including AZ grade fibre). In the month of June, 1974, the Provincial Inspector of Mines ruled that mining in the pit bottom should be curtailed until such time as the safety catchments were re-established on the hanging wall side of the pit. This work was well underway by year end, but will restrict ore output until May, 1975. The planned production of fibre for 1975 has been fixed at 110,000 tons. A total of 4,393,991 tons of waste was removed from the orebody at a cost of $5,995,412. The waste is related to sections of ore that will be released for mining by its removal, and the cost is apportioned accordingly. As the ore is mined, the appropriate portion of waste removal expense is written off as a part of the current ore mining cost. On this basis, the waste charge against the ore mined in 1974 was $5.00 per ton, and it is expected that the same rate will apply during 1975. The increase of $1.00 per ton in the waste charge over the previously estimated figure for 1974 was the result of higher waste removal costs, due to increased labour costs, continuing low equipment availability, restricted working areas and a slightly increased waste to ore ratio for the current section. The mobilization of the additional mining equipment together with the planned wider benches will reduce future waste costs. Fibre Refining During the year 913,213 tons of ore and concentrate were treated to produce 92,709 tons of fibre. The new dryer has improved the drying capability and has enabled better control of the drying process. A consistent moisture content in the ore is essential for the efficient refining of asbestos fibre. Ore Reserves The probable ore reserves were calculated at the year end to be approximately 22,121,000 tons. During the year 334,910 tons of Talus and low grade material were reclassified as waste. The diamond drilling programme planned for 1974 to provide better grade control was curtailed as a result of the safety restrictions referred to above. The programme will be resumed in the fall of 1975. Environmental Work A tailings agglomeration system was installed in the refinery in order to deliver a water dampened product to the waste disposal system, to which a stacker has been added. These have still to be modified for cold weather operation, but they have already been effective in reducing dust emission levels. In the dryer section, the additional capacity provided by the new dryer and its bag filter system and other improvements that have been made have greatly reduced the dust content in emissions from this source. An air monitoring programme was started in the townsite and plantsite during 1974 in co-operation with the Provincial Government. Results obtained to date indicate that dust levels fall within the applicable Provincial regulations. PAGE FIVE