Speciality Metals International Limited Annual Report 2020

8 Speciality Metals International Limited Annual Report 2020 XRT Sorter Development The installation and commissioning of the XRT Sorter Pilot Plant was completed during the quarter ended June 2020. Bulk testing of several stockpiles around the Mt Carbine site has commenced to determine the economic optimisation of XRT sorting on the material. Along with the installation of the XRT Sorter Pilot Plant, the Company purchased an additional cone crusher to optimise the size of the material prior to being fed into the downstream gravity processing plant to complement the production of tungsten concentrate. This is the first step in the process of scaling up the tungsten processing operations at Mt Carbine to the targeted throughput of 1 million tonnes per annum (refer to figure on page 5, Mt Carbine Project Timeline ). Using XRT sorting and gravity processing, the Company aims to recover the tungsten units left behind in the historical waste rock stockpiles and scale up operations in accordance with its project timeline. The trial operations are synchronising the recovery of tungsten units with the preparation of quarry feedstock which allows the Company to sustainably lower its OPEX and environmental footprint, while maximising value from its assets. The test work results from the XRT Sorter are also being compiled for a collaborative project study titled Optimized X-Ray Ore Sorting Technologies and Material Handling Concepts for Historic Tungsten Mine Waste Transformation . The project consortium is led by CRONIMET Australia and further consists of the Company, The University of Queensland - WH Bryan Mining and Geology Research Centre, TOMRA Sorting Pty Ltd and DAS Mining Solutions Pty Ltd (refer ASX announcement Quarterly Activities and Cashflow Report released on 29 July 2020). The project will establish the physical controls on separation efficiency of the low-grade stockpile materials at Mt Carbine to develop new mine planning and scheduling models and optimise scale-up application of ore sorting technologies. In July 2020, the Project consortium’s application to METS Ignited Australia Limited ( METS Ignited ) for a $220,000 grant under the Queensland METS Collaborative Projects Fund was awarded (refer to ASX announcement Government Support for Mt Carbine Mine Waste Transformation Initiative released 24 July 2020). This was a positive endorsement by both the Commonwealth and Queensland Governments (facilitated by METS Ignited) and the work completed under this grant program (expected to take nine months) will be a contributor to the ongoing development of the sorting operation. Preliminary results from the sorter testing program has achieved upgrade ratio as high as 28:1 (refer to ASX announcement, Pilot Sorter Delivers Significant Tungsten Ore Upgrade released on 7 September 2020). XRT Sorter Operating and Financial Review continued