Speciality Metals International Limited Annual Report 2020

10 Speciality Metals International Limited Annual Report 2020 In parallel with the modernisation plan, the Company continues to look for innovative solutions for the quarry that will allow for sustainable and continuous income. In this connection, the Company has started investigating potential value-add technologies to transform rock waste not merely into quarrying products but into higher- value, lower-carbon intensive building products. The Company takes this opportunity to extend a warm welcome to the newly appointed Quarry Manager, Mr Michael Bartlett, who commenced employment with the Company mid-August 2020 to support the continued growth and development of the quarry. Mr Bartlett holds tertiary qualifications in Commerce, quarrying management experience and Site Senior Executive certifications and has significant experience in quarrying operations in diverse industries including mining, transport, and local government. Exploration Activities Mt Carbine Exploration and tenement administration work has been ongoing with respect to the Mt Carbine tenements, which now includes the newly granted EPM 27394. Part of this work has involved the Company’s geological team reviewing historical maps of the area within and immediately adjacent to the Mt Carbine Mining Leases. These areas have been remapped and all available geological data has been updated. The Company’s digital database is continually being updated with this information. A detailed review of the geology of Mt Carbine has given the Company new insights into its mineralisation. Since the discovery of the mine in 1895, Mt Carbine traditionally attracted old-time miners who produced considerable amounts of tungsten by hand from mining rich veins of tungsten in narrow tunnels and shafts. The miners were able to follow these narrow high-grade veins for hundreds of metres. By using careful computer modelling, the Company has highlighted where these high-grade veins can be traced to depth. Core intercepts of these veins have been labelled ‘King Veins’ in recognition of their high-grade and robust mineralisation as shown below. Mt Carbine is one of the world’s largest tungsten resources which was previously treated as a large bulk target with a significant development cost. However, work is now being completed to identify the high-grade structural zones and to redefine the mining approach to be taken at Mt Carbine. Some of the Mt Carbine drill core dates back over 40 years, it was therefore necessary to undertake a clean- up and re-logging of the core for the Company’s new database. At the same time, new high-resolution core photography is being completed that will be computer linked to their intervals. This is a start in the re-evaluation of the database to provide the necessary data to undertake an evaluation of this high-grade target. Operating and Financial Review continued Drill core shed Drill core with wolframite mineralisation