Casstar AsBestos CoRPORATION LIMITED Pace ELEVEN A new adit at the 5703’ elevation, approximately 300’ below the first adit work, was started from the Cirque Valley, and driven in a southerly direction. The ore zone was entered at 945’, after the end of the fiscal year. The first 530’ of the adit was in frozen asbestos-bearing talus; from 530’ to 945’ the drift was in solid, highly sheared, barren serpentine. At 945’, which is almost vertically below the northern end of the 6000’ level, typical mine ore was encountered. The face was advanced 85’ to the south, and a cross-cut was then started to the east. The cross-cut advanced 387’ in good mine grade ore. This, combined with a test hole to the west of the drift, gives a total width of 540’ developed to date. All headings were in ore when work was suspended for the season. The development of the ore zone at the 5700’ horizon will be continued next year. The second stage of the mining programme will be based on the ore indicated by this work. The results to date indicate that a very substantial increase in the ore reserves may be anticipated. MILL The mill treated 389,232 tons of ore, for an average of 1,065 tons per calendar day. Some changes in the mill circuit and equipment, made towards the end of the fiscal year, have improved fibre recovery. The high quality of the fibre was maintained throughout the year, and research work in this direction is continuing. At the end of the fiscal year, with the mining season completed, there were 92,415 tons of dry ore in the dry rock storage building, and 152,222 tons of ore in the stockpile; sufficient to supply the mill at 1,000 tons per day until June, 1959. The dust collecting system has proven very effective, and has greatly reduced the problems encountered in winter milling. The method of handling bagged fibre has been substantially improved by further mechanization. PLANT AND EQUIPMENT Total cost of additions to plant and equipment during the year was $867,954, and included the following: Mill No. 2 Fibre Storage Building Improved Bagging and Handling Equipment Additions to Group 5 Fibre Circuit Mine 1 — Drillmaster Increased Capacity of Tramline Exploration Equipment