Speciality Metals International Limited Annual Report 2020

Speciality Metals International Limited Annual Report 2020 11 Panama Hat – Broken Hill Subsequent to the 2020 financial year, the Company received and accepted renewal conditions for EL 8024 for a further term to 29 November 2024. Panama Hat has been the focus of past detailed exploration with a line of gold workings stretching over an 8km strike-length. This zone is known as the Huonville Gold Field and sits entirely within the Company’s tenement. Gold located to date has been in high-grade narrow quartz veins that are hosted in the Willyama Supergroup Formation, with the largest mine being the Panama Hat Mine. Exploration in this area has been hampered by extensive calcrete cover and recent scientific developments have shown that sampling of calcrete can identify underlying tracing of gold deposits. The initial orientation test sampling showed anomalies in the calcrete emerging and showed a strong trend across the known ‘line of lodes’. Given the success of this approach, the Company will complete the survey over the entire gold field and then review for drill targets once the COVID-19 inter-state travel restrictions are eased. EL8024 Panama Hat, Willyong Tank and Williams prospects hosted by shear zones (after Burton 1992) Plot of gold values (ppb) obtained in calcrete samples of Willyong Tank ≥ 5ppb is the threshold for gold anomalous value Plot of god values (ppb) obtained in calcrete samples of Panama Hat Grid, ≥ 5ppb is the threshold for gold anomalous value Once high grade zones have been confidently identified, the Company will commence mine planning for a high- grade, low tonnage deposit that will have a lower cost of production and reduced environmental footprint. To this end, the Company has now engaged a full-time geologist and various external consultants to redefine the underground resource at Mt Carbine.