from what I understand SMS coin were struck between 1965 and 1967. the difference between a business strike and an SMS coin is that they were struck on higher tonnage presses than business struck coins resulting in an above average strike. as to how to tell the difference I have no idea. maybe comparing it to business strikes for the same year and denomination. my opinion is that the IN in the motto is not fully struck as well as the arrow and tail feathers. there is a considerable amount of flatness in the letters also. if I had to guess i'd say its not SMS
if you say there are signs of circulation its difficult to determine that using these photos so i'll have to take your word on that. obviously it hasnt seen much at all.