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CLINTON MINE
Mining
During the year 2,093,718 tons of ore were mined and delivered to the concentrator by tramline.

A total of 705,470 tons of rock was discarded to produce 1,388,248 tons of concentrate. The recovered
grade of the ore mined, excluding CZ, was 4.37%, as compared to 5.64% in 1973.

A total of 11,030,214 tons of waste was removed at a cost of $5,431,122. Waste removal costs
are capitalized and written off in the same manner as at Cassiar. In 1974, the average charge against
the ore mined was $2.47 per ton, and it is expected that during 1975 the same rates will apply.

Due to a localized wall failure in the pit, an additional 4,177,000 tons of waste had to be removed
in order to flatten the slope of the pit wall in this area from 50° to 45°. This work has been carried
out satisfactorily, but it did necessitate a revision in the ore mining programme which resulted in the
mining of lower grade ore than was anticipated.

Fibre Refining
The fibre refinery treated 1,388,447 tons of concentrates and produced 91,392 tons of fibre.
By year-end, the CZ fibre circuit was in operation and 134 tons of that fibre had been produced.

Ore Reserves
The ore reserve position as at December 31, 1974, is as follows:
Probable Ore _—_ Possible Ore

Main Orebody Re Satan uae a ari e e ea dieor ren yee, om 4,256,258 —
GreekiOrebody Me we wa eee ny eee enn aera ee ear ee 138,109 —
Snowshoes@rebodys- eves ee ee ee ee ee 2,130,358 461,000

6,524,725 461,000

In the main orebody 1,624,838 tons were mined during 1974. On the footwall side, a low
grade zone was mined as ore, which accounted for an addition to the probable ore reserve of 39,358 tons.

The 1974 diamond drilling programme in the Bear Creek zone of the main orebody was not
encouraging. A re-assessment of the economic feasibility of mining this zone has indicated that it cannot
be done profitably. The possible ore reserve of 7,500,000 tons reported last year has, therefore, been
removed from the reserves. In the Creek orebody the remaining 138,109 tons of probable ore reserve
will be mined during 1977.

In the Snowshoe orebody 235,549 tons were mined in 1974. A redesign of the pit and a
re-assessment of the grade of the ore reserves permitted the transfer of 717,962 tons from the possible
into the probable ore reserve category. There was a net loss in possible ore of 113,038 tons.

Environmental Work

A tailings agglomeration system was installed, and, apart from cold weather problems, it has
assisted in keeping particulate emission from the tailings disposal area at an acceptable level.

The installation of high efficiency cyclones in the concentration plant and additions to the air
filtration system in the refinery have also helped to reduce dust emissions.

TRANSPORT DIVISION

This Division continued to haul fibre from Clinton Creek to Whitehorse.

The Company has not been advised of any change in the anticipated completion by late 1976 of
the British Columbia Railway extension to Dease Lake.

PAGE SIX

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