CassIAR ASBESTOS CORPORATION LIMITED

the company. During 1966, the cost per ton-mile was reduced from 6.07¢ to 5.67¢. The total operated
mileage was 2,213,534 miles and 75,100 tons of fibre and freight were handled. It is a credit to the
division’s maintenance that a number of the tractor-trailer units are still operating at acceptable costs
after more than 750,000 miles of Alaska Highway services.

ASBESTOS WHARF

The facilities of Asbestos Wharf in North Vancouver, combined with the modern containerized
movement provided by the White Pass and Yukon Route are effecting reduced costs in the warehousing
and shipping operations. Experiments with one-ton unitized pallet loads carried out during the year
have indicated that further costs reductions can be achieved. Automatic equipment to pre-compress and
strap the one-ton packages will be installed in the mill at Cassiar by mid-year. Thereafter, all fibre will
be shipped in one-ton units which can be handled mechanically.

KUTCHO CREEK ASBESTOS COMPANY LIMITED

A total of 3,277 feet of diamond drilling was completed in six holes in the main zone at the
wholly-owned Kutcho Creek Asbestos property, 60 air-miles south-east of Cassiar, B.C. The drilling,
along with some surface trenching, disclosed the presence of a fibre bearing zone dipping at 50° into
the hill with widths up to 300 feet, and a length of 1,200 feet. Further trenching and geophysical work
disclosed two other similar zones lying approximately 600 feet from the main zone to the south-east and
north-west respectively. An additional 235 claims have been staked to cover other potential areas in
the vicinity.

Due to the heavy demands imposed by the Clinton Mine operation on both personnel and finances,
only a limited amount of geophysical and geological work will be carried out in 1967. The extent of
the surface occurrences warrants a considerable future exploration effort to determine the grade and
tonnage underlying the occurrences.

General Exploration

The Anderson claims were examined and as no showings of economic interest were found the
option was dropped.

General exploration in Northern British Columbia and the Yukon is continuing.
Acknowledgements

The staff and employees are commended for their exceptional effort in maintaining a maximum
production rate.

On behalf of the Board,

F. M. CONNELL, J. D. CHRISTIAN,
Chairman. President.

Toronto, Canada,
March 9, 1967.

PAGE SIX