Ann: Pilot Sorter Delivers Significant Tungsten Ore Upgrade, page-19

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1	Background:EL 6648 lies approximately 20km south east of Barraba in northern NSW, and straddles part of the Peel Fault, a major structure that geologically separates the New England Province from the Tamworth Trough to the west. It comprises of 9 sub-blocks that cover a historic gold field discovered in 1868, and worked up till about 1906. The deepest working at Crow King is reported to be 67m. More...EL 6648 lies approximately 20km south east of Barraba in northern NSW, and straddles part of the Peel Fault, a major structure that geologically separates the New England Province from the Tamworth Trough to the west. It comprises of 9 sub-blocks that cover a historic gold field discovered in 1868, and worked up till about 1906. The deepest working at Crow King is reported to be 67m. Resource: Geology/Geophysics:EL 6648 lies approximately 20km south east of Barraba in northern NSW, and straddles part of the Peel Fault, a major structure that geologically separates the New England Province from the Tamworth Trough to the west. It comprises of 9 sub-blocks that cover a historic gold field discovered in 1868, and worked up till about 1906. The deepest working at Crow King is reported to be 67m.Within EL 6648, over an area of approximately 9 km2, there are numerous historical shallow gold workings dating from 1868 with historical records indicating that high to bonanza grade gold occurred in quartz veins up to 38cm wide and 12m long. In modern times, the licence has been partly investigated by 3D-IP survey, drilling and surface sampling. Location of EL 6648, showing historical gold workings (yellow triangles) adjacent to the Peel Fault ForwardProgram:The Company’s plan for exploration within EL 6648 is based around the concept that high to bonanza grade small vein quartz occurrences, together with background low grade gold mineralisation, may constitute a bulk-mineable resource.
2	GEOLOGY/GEOPHYSICS EL 6648 straddles the Peel Fault, a major geosuture that separates early Palaeozoic metasediments on the eastern side from Mid Devonian volcanic-derived sedimentary rocks on the west. The Peel Fault itself is famously characterised by a more or less continuous belt of serpentinised ultramafic rocks. Early Triassic quartz monzonite dykes and plugs locally intrude the Peel Fault and older rocks. The Company's recent exploration has shown that the majority of the historical workings are hosted by quartz veining in metasiltstone between the serpentinite and a prominent chert horizon east of the Fault. However, gold mineralisation has also been detected by drilling in the Fault itself and in brecciated, carbonate rich Devonian sedimentary rocks west of the Fault. This licence was previously held by Speciality Metals’s precursor company, Icon Resources Ltd, who drilled three holes in the Magnesite Hill target in 2010, with the following results: Table 2. Drill hole details, Icon Resources drill holes. The licence was a key component of a proposed listing of Icon’s prior gold prospects that it reluctantly sold in 2011. Speciality Metals is very pleased to have been able to re-acquire the tenement as it still strongly believes that it holds significant exploration potential.