Operations In 1982, 1,083,738 tons of ore were mined from the Cassiar asbestos mine compared with 1,354,400 tons in 1981. The mill produced 86,207 tons of fibre during nine months of opera- tions. 4.6 million cubic yards of waste were removed during 1982, some 200,000 tons less than in the previous year, at unit costs somewhat below 1981 levels. Capital expenditures were $4.5 million compared with $6.0 million in 1981, with 60% of 1982 expenditures being spent on mill improvements and modifications. The mine was closed for a holi- day shutdown throughout July, and operations were again halted in December when a haul rope broke on the ore tramline. Following repairs to the tramline. operations resumed in mid-January 1983. For the third year in a row, Cassiar won the Government of British Columbia's top safety award for large open pit mines. “9 Tacppipe re Reserves During the year, Cassiar open pit ore reserves were recalculated to establish ultimate open pit limits in the light of current asbestos market conditions. By comparison with previous reserve calculations, the cutoff limits were determin- ed on a dollar value basis rather than on fibre content. The net effect of the change was an in- crease in cutoff grade and a decrease in both ore tonnage and waste rock to be removed. Open pit ore reserves as of December 31, 1982, based on the new mine model, are calculated to be 8.265.496 tons. Further optimization and scheduling refinements to the ultimate pit design are under study. \4aaitini yf krpye ICNIINFOS Adaalulonal FIvre IKeSOUFCES During the year, studies con- tinued on the McDame deposit contiguous to the Cassiar deposit, and an auger drill testing program was carried out on the Cassiar tailings pile. Addi- tionally, a drilling and trenching program was conducted on the au Cassiar and McDame asbesto Tanya asbestos claims, some ten miles north of Cassiar. Previous work on the McDame deposit has outlined approximately 15 million tons of asbestos-bearing serpentinite with asbestos con- tent similar to that of the Cassiar ore body. The Cassiar tailings pile is estimated to contain 9.1 million tons of material with an average fibre content of 7%, plus four million tons having lower asbestos grades. At Tanya, good quality fibre has been located in overburden and bedrock. These three prospects are considered potential sources of additional asbestos ore supply for the Cassiar mill, and investigations will continue on all three during the current year. Marketing Fibre sales slightly exceeded production during the year. The high quality chrysotile asbestos fibre produced at the Cassiar mine is sold mainly to building material suppliers to the con- struction industry, although some 7-9% of Cassiar produc- tion is sold to the asbestos tex- tile market. Building materials 0 = s ore bodies and location of Tanya deposit. markets for Cassiar fibre showed little improvement during 1982 but markets for the textile grades were buoyant. DISTRIBUTION OF SALES: 1982 1981 Percent Percent North America 13.5 21.0 South America 8.6 8.0 Asia 20.3 24.0 Continental Europe 36.9 29.0 Australia - New Zealand 11.9 13.0 Middle East 8.8 4.0 Proauct Liability Brinco Mining Limited, like other asbestos producers, is a named defendant in many legal actions in which it is alleged that mine operators are liable to in- dividuals who have contracted disease as a result of exposure to asbestos, chiefly in manufac- turing plants and in the handling or use of asbestos fibre pro- ducts. Brinco Mining Limited denies such liability and is defending its position in all ac- tions which have been brought Brinco Mining Limited against it. While few of these actions in- volving Brinco Mining Limited have reached the point of trial. the defence costs are high and the position of the Canadian producers has been made more difficult as a result of a number of United States companies, in- cluding Manville Corporation (the largest supplier and manu- facturer of asbestos products), having made applications under Chapter 11 of the United States Bankruptcy Code. These applica- tions have effectively removed the companies involved, at least for the time being, as co- defendants in existing litigation in United States Federal and State courts, and may prevent new actions being brought against them in those courts. The eventual impact of these bankruptcy proceedings on Brinco Mining Limited and other asbestos producers is difficult to predict. but Brinco Mining Limited will continue to take such measures as may be ap- propriate to minimize exposure in the product liability litigation.