Speciality Metals International Limited Annual Report 2019

Page | 16 MINERAL RESOURCES AND ORE RESERVES STATEMENT Data aggregation methods N/A Relationship between mineralisation widths and intercept lengths N/A Diagrams A plan view of sampling is shown below in Figures 1 and 2. Balanced reporting N/A Other substantive exploration data N/A Further work The bulk sample was subjected to a series of trials through a pilot scale X-ray ore sorter over a period of 2 months. This work demonstrated that an optimum 6 times upgrade of the tungsten content in the ore sorter accepts, and ensuing feasibility studies indicate that the LGS is economic to process by means of X-ray ore sorting and concentration of mineral in the ore sorter accepts in a conventional gravity mill. Section 3. Estimation and Reporting of Mineral Resources Database integrity N/A Site visits The Competent Person has been closely involved in resource assessment at Mt Carbine between 1985 and 1988, 1992 and between 2009 and the present. The relevant Competent Person has conducted numerous site investigations including mapping, sampling, core logging, review of historical resources and reserve estimates, mining, metallurgical processing and recovery. Geological interpretations Senior geological staff including the Competent Person have developed a sound understanding of the geology and importantly, geometallurgy of the deposit. Dimensions The 12Mt tonnes estimated to be contained in the LGS has been derived from nearly complete historical mine records, confirmed by reconciliation of an independent estimate of total tonnes mined from the open pit (22Mt) less 10Mt material processed through the mill. Estimation and modelling techniques The detailed distribution of grade through the LGS is not known, as no record was kept of placement of rock consigned to the stockpile, nor was any sampling carried out. The average of assays of the three size range sub samples of the bulk sample is 0.075% WO 3 . This reconciles very favourably with a back-calculation from historic mine records of production and mill recovery and based on the recent resource estimate which took account of the resource mined during the previous open pit operation, of a global average grade of 0.07% WO 3 for the Low Grade Stockpile. It should be noted that the historical mine records state that 3.5Mt of rock described as ore were apparently consigned to the stockpile in 1982. The grab samples average 0.088% WO 3 (fused disk XRF analysis), which is taken to indicate that the tungsten grade of the finer fraction (<200mm) of the stockpile is higher than the global average grade of the bulk sample that included fragments up to 500mm. Moisture Tonnages are estimated on an air dried basis. Cut off parameters No cut off has been applied to the stockpile grade estimation, however it is planned to screen the stockpiled material at 500mm and only crush and ore sort the minus 500mm fraction, since a growing body of data from on-going tests indicates that this fraction contains the bulk of the tungsten minerals that it is planned to recover. Mining factors The stockpile fills a valley and will readily be recovered by excavator and truck.