Cassiar Asbestos Corporation Limited

Report of the Directors

To the Shareholders,

Cassiar Asbestos Corporation Limited.

Your directors submit herewith the Third Annual Report on the operations of your
Company, including financial statements prepared as at September 30, 1954, your auditors’

report thereon and a report by Mr. J. D. Christian, General Manager.

As outlined in the General Manager’s Report, operations have proceeded satisfactorily
throughout the year. Mill construction was completed and the necessary equipment installed
to place the 500-ton milling unit in operation on July 6, 1954. You will note from the state-
ment of operations that results for the first three months of production are very satisfactory

and substantiate previous estimates.

During the year your Company expended $1,526,262.56 on Plant and Equipment
including the completion of the 500-ton milling unit and additions to the power plant, aerial
tramway, general camp facilities and housing, and commencement of construction of the aerial
tramway. Additions to Automotive Equipment, which includes equipment used in mining
operations as well as transportation equipment amounted to $137,479.40. The expenditure of
$17,115.67 added to roads represents the cost of improvements to the mine road, including

the extension of the road into the Cirque Valley to service mining operations at that point.

Construction of the aerial tramway was commenced and at the year end the erection of
the towers was well advanced. It is expected that the balance of the equipment and materials
for the tramway will be delivered by early Spring and construction will be completed during
the Summer of 1955. The tramline will have a capacity of 100 tons of ore per hour and it is

expected that this installation will materially extend the mining season.

Your Company has acquired a one-half interest in Territorial Supply Company Limited,

which provides a supply and service agency for your Company at Whitehorse.

PacE THREE