Cassiar Asbestos Corporation Limited

Report of the General Manager

Mr. F. M. Connell, President,
Cassiar Asbestos Corporation Limited,

Suite 1001 - 85 Richmond Street West,
Toronto 1, Ontario.

Dear Sir:

I submit herewith my report on operations during the year ended December 31, 1962.

During the year, operating efficiency in all departments improved sufficiently to offset
the effect of increased costs for supplies and services.

MINE

Ore mining for the year started on February 1st, 1962 and waste mining later in the
month. Mining is now continuous throughout the year. No unexpected difficulties have
been encountered in winter operation and mining costs compare favourably with those
incurred under the previous practice of suspending mining for some of the winter months.

During the year, 720,416 tons of ore were mined and 2,357,623 tons of waste rock
were stripped. The cost of stripping amounted to $2,007,698. Amortization of stripping
costs has been based on a waste to ore ratio of 114 to 1 during the mining of Stage A and B

ore reserves. With the start of mining of Stage C ore during 1963, this will be increased
to a ratio of 2 to 1.

In the rock rejection circuit 462,218 tons of ore were treated from which 167,677 tons
of rock were discarded to make 294,541 tons of concentrate. The concentrate and 240,174
tons of mine run ore, for a total of 534,715 tons of mill feed, were delivered to the mill by
tramline. In addition, 18,024 tons were trucked to the mill stockpiles.

Exploration and development at the mine were confined to the stripping programme
and exploratory drilling in the Cirque Valley was deferred for consideration in 1963. Ore
reserves remain substantially unchanged, with sufficient ore indicated within the presently
planned pit limits for 30 years production at the present rate.

Plans are being made to relocate the mine crushing plant at a lower horizon during
the coming year. This will include the installation of a larger crusher and other equipment
to improve the efficiency of the plant and reduce costs. The move to the new location is
necessary in order to maintain efficient haulage from the lower ore benches and was
anticipated when the present crushing plant was installed.

MILL

The mill treated 569,571 tons of mine ore and concentrate for an average of 1,560
tons per calendar day. The high quality of Cassiar products was maintained and all grades
were well accepted in the world markets.

Pace TEN

Sascha a

a cai TAR a na

ae 2
eae Bu

Sigma

By gel

Rye
ual

weeks

st

s ae Ue eat 7
aA i Sar 8

Ne tab tiaee Bs SurS .

ST TT Ae ee eer EO Eee ens