KUTCHO CREEK ASBESTOS COMPANY LIMITED

The trenching and geological work completed during the year indicated that the fibre content
of the southeast and northwest anomalous zones located in 1966 was very low and not of commercial
grade. In the main showing, the two zones which were thought to be separated by a band of waste
have been shown by trenching to be one zone. This has enhanced the tonnage potential but grade
determination will have to await further diamond drilling and underground adit development. Tenta-
tively, this is planned for the summer of 1972.

GENERAL EXPLORATION

The long term exploration programme of selected areas in British Columbia and the Yukon
Territory was continued but no showings of economic interest were found.

An option on a group of antimony claims in the Mayo area of the Yukon was turned over to a
group of companies for which Conwest Exploration Company Limited is acting as manager. Your
company received a twenty percent carried interest until a sum of $200,000, including option payments,
has been expended on the property and thereafter will have the right to maintain this interest by providing
twenty percent of the funds if further development is warranted.

Exploration will continue in 1971.

RESEARCH

The research programme is proving to be of considerable value in customer relations and in the
control of quality in our products.
LABOUR

A collective bargaining agreement, effective 30 September 1970 and expiring 30 November 1972,
was signed by the company and the United Steelworkers of America, local 564 Clinton Creek and local

925 Whitehorse, Yukon Territory.

Following a strike, which lasted from 5 November to 21 November 1970, an agreement expiring
on 30 November 1972 was signed with local 6536 Cassiar, British Columbia.

ACKNOWLEDGEMENTS

The directors wish this year to particularly commend members of the staff of all divisions and
the employees for the initiative and effort they displayed in overcoming the many obstacles and disrup-
tions encountered throughout the year.

On Behalf of the Board,

F. M. CONNELL, J. D. CHRISTIAN,
Chairman. President.

Toronto, Canada,
March 16, 1971.

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