Mill

ee The mill treated 952,889 tons of ore and produced 87,820 tons of fibre. Improved rock
rejection was achieved at the head end of the mill after secondary crushing by the addition of a number
of rock screens. As a result, the fibre capacity of the mill was not affected by the elimination of the
rock rejection circuit.

Both the quantity and the quality of the fibre produced was up to expectation. A number of
changes and additions to the circuits are being made to increase the annual capacity in 1970 to
approximately 100,000 tons of fibre. It is expected that a limited tonnage of spinning fibre will be
produced during 1970.

Ore Reserves

The probable ore reserves to a depth of 200 feet below the adit are estimated at 22,000,000 tons.
No diamond drilling or other exploration work was carried out during the year. Fibre recovery is
running in excess of nine percent and it appears that the original estimates were on the conservative side.

Townsite

During the summer, residents were busy cleaning up and landscaping around their new homes
with very rewarding results. A nurses’ residence, a sixteen-room single women’s residence, and a
forty-room men’s residence were under construction at the year end.

TRANSPORT DIVISION

The Transport Division, based at Whitehorse, was able to handle the additional production from
both mines with the existing fleet of trucks.

The lack of a bridge over the Yukon River at Dawson presented a major problem in the fall
of the year. The ferry was removed late in October and due to the mild winter, an ice bridge was not
completed until mid-February. During this period, the Skyline was used to full capacity and surplus
tonnage from the Clinton Mine was shipped through Alaska.

The longshoremen’s strike in Vancouver resulted in an accumulation of approximately 13,000
tons of fibre in Whitehorse. North American customers were supplied by an alternate route through
Alaska for the Clinton fibre and through Fort St. John for the Cassiar fibre. Where required, advance
shipments were made to overseas customers prior to the strike. The Whitehorse accumulation was
cleared in early January. It is estimated that the additional cost arising from these disruptions exceeded

$500,000.

ASBESTOS WHARF

Disruptions to the shipping schedule due to the longshoremen’s strike placed a heavy burden on
the facilities and personnel at the wharf. It is expected that schedules will be back to normal by the
end of the first quarter.

KUTCHO CREEK ASBESTOS COMPANY LIMITED

A limited amount of trenching and geological work will be undertaken in 1970 on the southeast
and northwest zones that were located in 1966. The announcement that the Pacific Great Eastern
are planning to construct a railroad into the Dease Lake area in the near future will justify an early
review of the potential of this property.

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