summer and a long winter with an excessive amount of blowing snow severely hampered the operation
of the concentrator at the mine, and reduced the capacity of the dryers at the mill. This restricted the
mill at a time when it was necessary to have maximum throughput in order to compensate for the lower
grade of ore.

As set out above, a new dryer is being installed at the mill and should be in operation by
mid-April 1974.

Ore Reserves

_A diamond drilling programme to provide information for grade control was started in 1973
and will continue in 1974. A few diamond drill holes to probe the footwall area are also required to
provide more detailed information for the pit design.

Subject to minor revisions, which will arise from the above work, the probable ore reserves
estimated to the 5360 foot level (i.e., 340 feet below the lower adit) are approximately 23,600,000
tons. During the year 264,345 tons previously considered low grade ore were reclassified as waste.

CLINTON MINE
Mine

During the year 1,744,794 tons of ore were mined and delivered to the mill by the tramline. A
total of 540,354 tons of rock was rejected.

A total of 12,601,825 tons of waste was removed at a cost of $4,873,274. Waste removal costs
are capitalized and written off in the same manner as at Cassiar. In 1973 the charge against each ton
of ore mined was $2.02 and in 1974 will be $2.55.

Mill
The mill treated 1,216,804 tons of concentrate and produced 100,147 tons of fibre. The
recovered grade of the ore mined was 5.64% (excluding CZ) compared to 5.66% in 1972.

Ore Reserves

As a result of 1973 diamond drilling and reclassification during mining, the probable ore reserves
in the main orebody were reduced by 936,429 tons and in the Creek orebody by 355,599 tons. On the
other hand, 1,647,945 tons were added to the probable ore from the Snowshoe orebody, making a net
gain of 355,917 tons. Further diamond drilling in the Bear Creek Extension of the main orebody, where
7,500,000 tons of Possible Ore reserves are located will be carried on in 1974. The reserves at
December 31, 1973 were as follows:

Probable Ore Possible Ore
Mains@rebodyawer es meee or ip ieee a 5,841,738 7,500,000
Greeka@rebod yaar a ee ees eee: eee 371,440 —
Snowshoe Orebody ....... ne re 1,647,945 1,292,000

7,861,123 8,792,000

TRANSPORT DIVISION

With the exception of a limited tonnage of fibre back-hauled by the White Pass and Yukon
Route trucks the Transport Division continued to haul the Clinton fibre from the mine to Whitehorse.

The major part of Cassiar fibre is handled by the White Pass and Yukon Route via Whitehorse
with the balance moving to Fort Nelson and Fort St. John and thence by the British Columbia Railroad.

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