Training Programme

_ There was a continuing shortage of skilled tradesmen during the year and the training programme
again proved of considerable value in up-grading the qualifications of company personnel. An extension
of this programme is currently being introduced at the Clinton Mine.

CLINTON MINE
Mine

During the year, 1,480,522 tons of ore were mined and delivered to the mill by the tramline.
The rock rejection plant was by-passed for most of the year and only 144,611 tons were rejected.
Preliminary tests indicate that further crushing of the ore will permit full time use of the rock rejection
circuit which, in turn, will provide some additional capacity in the mill. The necessary equipment should
be installed by June 1971.

; A total of 4,536,738 tons of waste was removed at a cost of $2,073,600. The write-off of this
eS i Hales in the same fashion as at Cassiar and in 1970, the charge against each ton of ore mined
was $1.10.

Unit costs in the mine and mill were maintained at a satisfactory level.

Mill

The mill treated 1,335,087 tons of ore and produced 104,386 tons of fibre. As at Cassiar, the
ore came largely from the lower grade footwall zone with the result that little spinning fibre was produced,
although the spinning circuit proved useful in maintaining the quality of the regular grades. It is
anticipated that the ore grade will be slightly below average throughout most of 1971.

Ore Reserves

The probable ore reserves to a depth of 200 feet below the adit are estimated at 20,500,000 tons.
A diamond drilling programme will be carried out this year at an estimated cost of $180,000 to outline
in more detail the probable ore reserves in the Bear Creek extension and to further investigate a zone
lying below the planned pit limits in which a few holes from earlier drilling returned low grade ore
sections.

TRANSPORT DIVISION

The announcement that the Pacific Great Eastern Railway will have a line into Dease Lake,
less than one hundred miles from Cassiar, by late 1974 and that their line to Fort Nelson will be
completed by the fall of 1971 has necessitated some changes for the Transport Division. A four year
agreement is being negotiated with the White Pass and Yukon Route whereby during 1971 they will
gradually take over all but 30,000 tons of the truck haul from Cassiar to Whitehorse. In 1972, the
remaining 30,000 tons will be taken over by the Pacific Great Eastern and moved via Fort Nelson. It is
expected that in 1975 the total Cassiar Mine production will be moved by the Pacific Great Eastern
via Dease Lake. The Transport Division will continue to handle the bulk of the Clinton Mine production.
Any employees who might be displaced by this transition will be given prior consideration by the White
Pass and Yukon Route for similar employment.

ASBESTOS WHARF — NORTH VANCOUVER

Your company and the White Pass and Yukon Route have jointly acquired an additional six
acres of land adjoining the Asbestos Wharf property on the east. This will provide sufficient space
to meet changing conditions that will result from the rail movement via Dease Lake and a probable

increase in containerization of overseas shipments.

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