Pace TEN Cassiar AsBestos CorporATION LIMITED
pei SE eee en oe egy ere NEA ERIN SSR) ADO)

Mill

The milling operation and resultant operating profits continued at normal levels
until the month of November 1954, at which time the mill commenced treating development
ore from the cirque valley. The cirque ore was mined when it became apparent late in
September 1954 that sufficient mine ore to carry through the winter season could not be
brought down the chute. To meet commitments on outstanding orders for fibre and to
avoid a temporary shut down, it was decided to move the additional tonnage required from
the cirque valley, where a considerable amount of talus was readily available. Time and
weather did not permit the proper stripping, bulk sampling and development of the area.
In November, when this material first reached the mill, it was found to contain a very
high percentage of moisture in the form of contained ice, resulting in a high cost of handling
and drying which, combined with a somewhat lower grade, resulted in an operating loss
for the period December 1954 to June 1955, when ore from the mine was again available.

Since that time the operation has resumed normal levels of recovery and profit.

At the close of the mining season on November 4, 1955 there were 47,350 tons
in the dry rock storage and 72,440 tons in the stockpile, sufficient to supply the mill until
mining operations begin again in June of 1956. The grade is estimated at normal mine

grade.

Some additions and improvements were made in the mill circuit. The furnaces of
the three rotary dryers were converted in December from coal to oil. This has greatly
improved control in the drying plant and has resulted in increased capacity and lower
costs. The mill laboratory was enlarged and is proving to be a vital factor in controlling

the quality and uniformity of the fibre.

Aerial Tramway

The major construction work during the summer was the erection of the tramline,
which was nearing completion at the year-end. A labour strike at Skagway, which com-
menced in September and continued until late October, resulted in delaying the arrival
of material and equipment required to make the tramway operative. It is expected that
about two weeks’ work, when conditions permit in the spring, will be required to complete

construction.

Construction
Eleven summer bunkhouses were constructed to house approximately 250 men.
Twelve new Pan-Abode staff dwellings were erected in the townsite, and a further ten houses

were started under the company-assisted employee housing plan.

A new hospital is under construction to replace the temporary unit, which was

destroyed by fire during the winter.

A two-room school and separate teacherage is under construction. This will release

the Recreation Hall for its original purpose.