IN COLLABORATION WITH

Page |1

Contents
The Quartz Mining License Key Facts:.........................................................................................................2
1.Introduction..............................................................................................................................................3
2.Pre-Production Performances..................................................................................................................4
2.1.Access Earth Road Construction........................................................................................................4
2.2.Site Preparation.................................................................................................................................4
2.3.Machineries and Equipment Selection..............................................................................................5
2.4.Site Grubbing Work...........................................................................................................................5
3.Details of Annual Production Performance..............................................................................................6
4.Employed Man Power..............................................................................................................................7
5.Working Days...........................................................................................................................................7
6.Employees Accident.................................................................................................................................7
7.Employed Machinery and Equipment......................................................................................................7
8.Expenditure..............................................................................................................................................8
9.Revenue....................................................................................................................................................9
10.Reserve Inventory...................................................................................................................................9
11.Environmental works accomplished.......................................................................................................9
12.Problem encountered during reporting period......................................................................................9

Bestpath Mining Quartz Annual Production Report Argeta Qerso Quarry Mining Coop.
 Page |2

The Quartz Mining License Key Facts:

1. Name of the Licensee: Argeta Qerso Quarry Mining Cooperative.
2. Report Coverage Time: From 1st January 2021 to 31 December 2021.
3. Type of Mineral Mined: Industrial Quartz Mining
4. Location of the Mine:

4.1. Locality: Mormora

4.2. Wereda: Moyale

4.3. Zone: Borena

4.4. Region: Oromia N.R.S.

5. Type of Mining License: Special Small Scale Mining License

6. License Condition:

6.1. License/Ref. No. WMII/W2/1687/G3/2013

6.2. Issued Date: May 26, 2021.

6.3. Licensing Authority: Oromia N.R.S.

Bestpath Mining Quartz Annual Production Report Argeta Qerso Quarry Mining Coop.
 Page |3

1. Introduction
Quartz/silica is a silicate mineral which is one of the most common rock-forming minerals of the earth’s
crust. Its chemical formula is Si02. About 60% of total raw materials of silica is used to produce a glass
industry (Silica-soda-lime), and 20-30% as accessory in ceramic and other industries (foundry sand,
ground silica-plastic, adhesives, rubber), filtration sand, blastic sand.

Worldwide silica can be derived either from Quartz vein, pegimatite/granite and silicate rocks such as
Wollostonite (metamorphic/hydrotheramal), or silica sand or others derived silica rich sediments
(diatomite) from sedimentary. But commercial quartz usually mined either from sedimentary or
metamorphic rocks.

There are three main origins of quartz:

i. silica sand- sedimentary derived-quart sand-cemented with argillaceous, calcareous,

ferruginous, or silicious material;
ii. Sand stone- sedimentary quartz-cemented with argillaceous, calcareous, ferruginous, or
silicious material;
iii. Silica-quartz rocks consists of high silica-quartzite, Novaculate, quartz veins, formed by
metamorphism.

When we come to the uses of quartz, its inputs in the following industries are worth mentioning:

Production of Ferro Silicon as Raw material;

glass industries, as sources of Si02;
Ceramic industries;
filler for paint, paper, plastic, rubber, filtration, foundry sand, pigments, abrasives, refractory
metallurgy and optic;
fluxes—in glass forming skeleton;
gemstones.

In Ethiopia, quartz rich deposits types exist in different parts, even though, most of them are not well
evaluated for industrial application so far. However, limited work is done in some parts of Ethiopia for
both silica and Wollostonite. To mention some examples, the Kenticha area of quartz and pegimatite
vein, the Muger valley of silica sand deposits and many others areas are some of the evaluated quartz

Bestpath Mining Quartz Annual Production Report Argeta Qerso Quarry Mining Coop.
 Page |4

resources for their chemical and physical properties and show a suitable property for Sheet glass
applications. So far, the Kentica deposits have been developed into industrial scale production.

Argeta Qerso Mining and Quarrying Cooperative, with its ample understandings of the above discussions
of the Ethiopian Industrial Quartz, owned two blocks of quartz mining at the Oromia regional level
fulfilling all the mineral laws of Ethiopia. After owning its mineral rights of the two blocks, the
cooperative immediately started producing the Industrial quartz with its available capital and technical
expertise. The Cooperative’s Industrial Quartz production has been very promising since its onset in July
of 2021.

This report covers the Annual Quartz Production performance from July-December 2021.

2. Pre-Production Performances
The pre-production performances include access earth road construction, Site preparation, machineries
and equipment selection as per the capital and expertise capacities of the cooperative, site clearance
and grubbing to expose the unexposed quartz resource. These has taken two months’ time from the
date of mine lease grant and has established sufficient movement and production capacities at the level
of the cooperative’s capacity.

2.1. Access Earth Road Construction

The access earth road was cleared using man power and simple hand tools such as picks, axes and
shovels. These is simply to clear the way up to the quartz resource blocks. Clearing trees and bushes,
large stones, cutting of small stone and soil heaps and filling small natural and artificial cuts to level the
ground for loading truck accesses were some of the tasks done during this stage of the pre-production.
Estimated total 10kms of earth access road has been prepared to reach both of the resource blocks.

2.2. Site Preparation

This site preparation is done so that the quartz mining could be made easy. In this regard, the mine site
lay out containing the distinct areas of waste dumping, production stock places, small camping and food
preparation localities, etc. have been prepared. The mined quartz has been loaded and transported
more or less with ease from the production stock because of this site preparation.

Bestpath Mining Quartz Annual Production Report Argeta Qerso Quarry Mining Coop.
 Page |5

2.3. Machineries and Equipment Selection

Though the cooperative doesn’t have the capacity to deploy large machineries such as loaders, dozers,
excavators, machines with jack hammers, it has deployed labor intensive equipment such as picks, axes,
shovels, sledges, big and small hammers together with chisels and sometimes hand operated jack
hammers. A brick layer’s ‘club’ hammer with a replaceable longer shaft and an appropriately large sized
chisel having an appropriate size of cutting edge have been used as could be bought from the available
local market. With the use of enormous labor force, the use of locally available equipments have always
been very helpful in the quartz mining work. The site grubbing work has been also done by the use of
labor-intensive shovels, picks and axes to expose the unexposed quartz veins.

Though it can be said that the production work is of an encouraging one when one compares it to the
scale of the labor-intensive cooperative such as the Argeta Qerso Mining and Quarrying, it is believed
that the scale of production should be upgraded at least to a small-scale level which can use better
machineries such as machines with jack hammers, loaders and excavators as well as trucks. As such
blasting can be implemented to the quartz vein instead of the back ward traditional way of mining
operation.

With regard to the upscaling of the Argeta Qerso quartz mine, the cooperative is planning a better way
of its mine operation. Two options have been proposed: One is to operate as a joint venture with other
local or international company which could inject better capital and mining technique. The other one is
to transfer the mining lease to a company having a better capital and mining technique. The cooperative
is endeavoring to decide implement the second option. If so, our analysis of the Ethiopian mining law
requires that both the administrative transfer from the Oromia National Regional State to the Federal
Ministry of Mines and the mineral right’s transfer from the Argeta Qerso Mining and Quarying
Cooperative to the selected company be done. Towards this end, the cooperative has recruited an
international company to make the administrative right transfer from the Oromia regional state to the
Federal Ministry of Mines and the lease right transfer from the Argeta Qerso Mining and Quarrying
Cooperative to the recruited international company registered in Ethiopia.

This annual mining performance report is prepared so as to facilitate the feasibility of the quartz
resource upscaling plan and rights transfer process.

2.4. Site Grubbing Work

The site grubbing work has been done by the use of labor-intensive shovels, picks and axes to expose
the unexposed quartz veins. One can deduce that this part of the quartz mine operation is very difficult
with labor and hand tools. The operation is mandatory to be done by better techniques and better
machineries such as blasting, machine jack hammering, excavating and loading machines, etc.

Bestpath Mining Quartz Annual Production Report Argeta Qerso Quarry Mining Coop.
 Page |6

3. Details of Annual Production Performance

No. Production description UOM* Quantity Remark

1 Plan m3 NA Feasibility is not

required for
production at the
cooperative level and
hence plan not
assigned.

2 Stock brought forward 0 Started from onset of

production

3 Actual Production (Estimated as per the tones 7,200 tones As has been
loaded trucks) estimated from the
total loaded trucks.
An average loading of
one 40 tones capacity
Sino trucks per day is
estimated for 6*30
working days.

4 Performance % >88% Estimated as per the

performance of the
labor and owners’
initiative.

5 Transported --------- Product sold for Local

market and
 Addis Ababa tones 7,200 tones transported to Addis
 Other export Ababa.

6 Stock tones 0 tones Estimated stock

present at the mine
site

* Unit of Measurement

Plan (ton, kg, litter, m3) (production plan indicated in the agreement).

Actual (ton, kg, litter, m3) (production mined out)

Performance (%) (Relation between actual and plan).

Transported to Addis or other destiny (ton, kg, litter, m3)

Bestpath Mining Quartz Annual Production Report Argeta Qerso Quarry Mining Coop.
 Page |7

4. Employed Man Power

Type Male Female Total
Administrative 5 0 5

Technical 1 1 2

Daily laborer 31 12 43

Expatriate 0 0 0

Total 37 13 50

5. Working Days
The number of working days starting from the on set of mining activities on July of 2021 up to December
of 2021 is 6*30 days which is equal to 180 days.

6. Employees Accident
6.1. Minor Injury: None
6.2. Major Injury: None
6.3. Fatal Accident : None

7. Employed Machinery and Equipment

The cooperative hasn’t employed heavy machineries and equipments during much of its operation
period. However, as there has been an intention to upgrade the production to small scale one
employing heavy machineries and equipments than the labor-intensive hand tools mining operation, the
cooperative has recently rented some heavy machineries such as excavators and dump trucks just as a
trial commissioning operation with the good will of the esteemed Oromia National Regional State
Mining Authority. Based on the results of the commissioning work, it has been found out that the
resource could be exploited with better performances than the existing one. It is estimated that 10 Sino
trucks can be loaded per day with better expertise and heavier machineries and equipments. This plan,
of course, needs to be backed up by the feasibility study which is currently being undertaken by a
consultant hired by Bestpath Mining plc in joint cooperation with the Agerta Qerso Quarrying
Cooperative. This is to facilitate the intention of optimizing the better production with increased foreign
exchange generation by making use of the administrative and ownership transfers of the license.

Bestpath Mining Quartz Annual Production Report Argeta Qerso Quarry Mining Coop.
 Page |8

Including the recent commissioning work the following equipment and machineries have been deployed
on the quartz quarry site:

S.N. Description Quantity Remarks

For material loading rented and
deployed recently for
commissioning operation to see
1 loader 1 the productivity of the mine

2 Dozer 1 “
For transportation rented and
deployed recently for
commissioning operation to see
3 Sino trucks 2 the productivity of the mine
Deployed since the onset of
4 Picks 100 production in July

5 Axes 100 “

6 Shovels 100 “

7 Hammer 100 “

8 Chiesel 100 “

8. Expenditure
S No Expenditure title Plan Actual (ETB Remarks
(ETB)
1 Salary and wedges NA* 2,268,000 Including benefits
2 Fuel Oil NA* 1,802,330
3 Utility Cost NA* 802,500 Telephone, water, electricity, accommodation, etc
4 Working capital NA* NA*
5 Depreciation NA* NA*

Total 4,872,830
*Not Assigned

Bestpath Mining Quartz Annual Production Report Argeta Qerso Quarry Mining Coop.
 Page |9

9. Revenue
S. No Production Unit quantity Unit price Total Price in birr Remark

1 Industrial Quartz Ton 7,200 600 birr 4,320,000

10. Reserve Inventory

To be done during the detailed feasibility study by the Bestpath Mining PLC to assist the license transfer
process.

11. Environmental works accomplished

The detailed environmental and social impact audits and next plans to be done during the detailed
feasibility study by the Bestpath Mining PLC to assist the license transfer process.

12. Problem encountered during reporting period

There have been technical expertise and technological limitations to foster the Industrial quartz
mining activities which imposes difficulties in earning better profits with better production and
better foreign exchange generations. The resource is believed to be technically feasible and
economically viable BUT this has to be proved with the detailed quantity and quality assessments to
be done during the feasibility study of the resource. That time the industrial quartz resource can be
changed in to a proven and/ or indicated reserve with clear production plans, clear cash flow, clear
mine site lay out with scientific mine design, etc. That’s the reson why the cooperative is planning to
transfer its mining right to a qualified international company established under the name of
Bestpath Mining Plc registered as per the requirements of the Ethiopian Industry, trade and mining
investment laws.

Bestpath Mining Quartz Annual Production Report Argeta Qerso Quarry Mining Coop.