Document status: Final

Document Type:Management Plan

HOW MINE
Initial Issue Date: 01/04/2018
Exploration Code of Practice
Revision Date: 25/08/2020 BEMS – MP – 14
Revision No.: 01
Issue No.: 01

- 1 - of 16

Issuer: Approver: Authorizer -1-

SHEQ Officer SHEQ Mine Manager

Manager

DATE PRINTED: 16-Oct-2020

WARNING: Always refer to the How Mine Intranet to confirm that this print is the latest version before use.
HOW MINE STANDARD BEMS PROGRAMME FOR HOW MINE PROSPECTING

CONTENTS

Page

INTRODUCTION III

SCOPE OF USE OF THE DOCUMENT IV

GLOSSARY OF TERMS VI

PART A

GENERAL INFORMATION, FINANCIAL PROVISION, ALTERNATIVES/

AMENDMENTS AND UNDERTAKING

1. GENERAL INFORMATION 1

2. DESCRIPTION OF THE PROPOSED PROJECT 3

3. DESCRIPTION OF THE ENVIRONMENT 5

4. FINANCIAL PROVISION 6

5. ALTERNATIVES/AMMENDMENTS 6

PART B

STANDARD BEMS PROGRAMME FOR

PROSPECTING

1.1. ACCESS ROADS ON THE MINING AREA 2

1.2. CAMP/OFFICE SITES 3

1.3. DRILLING SITE 7

1.4. EXPLORATION TRENCHES AND PITS 7

1.5. ROCK SAMPLING ON HILLS AND MOUNTAINS AND GENERAL 8

GRID SAMPLING OF SOILS AND ROCKS

1.6. MONITORING 8
1.7. STATUTORY REQUIREMENTS 8
STANDARD BEMS PROGRAMME FOR PROSPECTING

1. INTRODUCTION

Prospecting activities have been identified as one of the activities for which environmental impacts can
specifically be addressed by means of a standard EMP. Thereby are common standards in quality and
environmental management which acknowledges site-specific circumstances, is ensured.

1.1 Scope of use of the document

This document may be used for prospecting activities as defined by the following description:

• Prospecting on the surface of the land by means of drilling, digging of trenches and pits, rock and soil
sampling.

This document may not be used in the following instances unless specifically agreed thereto by the
Environmental Management Agency (EMA).

• In the case of bulk sampling where the sample itself exceeds a volume of 125m3 or an area of more
than 25m2, unless determined otherwise by the EMA.
• If a river diversion is envisaged.
• Prospecting in sensitive environments designated / demarcated areas or features.

a) Sensitive Environments

These are Designated Sensitive Areas or Features

Note: “Designated areas or features” mean any area or feature already declared in terms of an Act of
Parliament as follows:

i) Limited development areas.

ii) Protected natural environments and national heritage sites.
iii) National, provincial, municipal and private nature reserves.
iv) Conservation areas and sites of conservation significance.
v) National monuments and gardens of remembrance.
vi) Archaeological and paleontological sites.
vii) Graves and burial sites
viii) Lake areas.

b) Demarcated Sensitive Areas Or Features

Note: “Demarcated areas or features” means any of the following areas or features which are demarcated by a
central, regional or local authority.
i) 9 Wetlands and lakes.
ii) Streams and river channels and their banks.
iii) Caves and sites of geological significance.
iv) Battle and burial sites.
v) Areas or sites of outstanding natural beauty.
vi) Areas or sites of special scientific interest.
vii) Areas or sites of special social, cultural or historical interest.

1.2 Glossary of terms

Long-term drilling operation: Involves stationary drill rigs, boreholes that are confined to a specific area and
which would be in operation for a period of 6 months and longer.

Short-term drilling operation: Involves boreholes and mobile drills which would be in operation for any given
time, but not longer than 6 months.

Recognised disposal facility: A facility as determined by the Technical Services Manager after consultation
with the SHEQ department.

Prospecting: Means intentionally searching for any mineral by means of geological techniques necessary for
that purpose which disturbs the surface of the earth or any tailings.

Mining area: As defined in the Mines and Minerals Act, mining area means the area comprising the subject of
any prospecting permit or mining authorization, including-

• Any adjacent surface of land;

• any non-adjacent surface of land, if it is connected to such area by means of any road, railway
line, power line, pipe line, cable way or conveyer belt; and
• Any surface of land on which such road, railway line, power line, pipe line, cableway or
conveyer belt is located, under the control of the holder of such permit or authorization and
which he is entitled to use in connection with the operations performed or to be performed
under such permit or authorization.

Topsoil: Means the layer of soil covering the earth and which provides a suitable environment for the
germination of seed allows the penetration of water, is a source of micro-organisms, plant nutrients and in some
cases seed, and of a depth of 0, 5 metre.
STANDARD BEMS PROGRAMME FOR PROSPECTING

PART A
GENERAL INFORMATION, FINANCIAL PROVISION, ALTERNATIVES/ AMENDMENTS AND
UNDERTAKING

This BEMS Programme (BEMSP) contains guidelines and operating procedures which will
be binding on the holder of a prospecting permit.

During prospecting, the holder shall ensure adherence to the provisions of Parts A and B
and any other condition that may be imposed by Environmental Management Agency
(EMA).

1. GENERAL INFORMATION

1.1 Full name of applicant/ holder : Bulawayo Mining Company, How Mine
Physical Address : Off Old Esigodini Road, Old Tuli Road,
Bulawayo
Postal Address : P.O Box 2259
Telephone Number : +263 9-288371
Cell phone Number : +263 772 126 881-3

1.2 Mineral for which it is proposed to prospect: Gold.

Name of holder (s) of the right to the said mineral in respect of the land or tailings
concerned:

Bulawayo Mining Company (Pvt) Ltd

Box 2259
Bulawayo

1.3 Name and address of surface owner(s):

Name: Metallon Corporation

Address: First floor no. 6

Arundel Office Park
Norfolk Rd
Box 6174
Harare
Tel.No: 04 338508-12 Fax. No.: 04 307690
1.4 Regional setting:

A locality map showing the location of the prospecting area/site in relation to farm
boundaries and nearby towns is attached.

• Name of map: How Mine and Three castles

• Reference grid: -853540
 • Registered name(s) of land (farm and subdivision):

∼ EPO 1017 as shown on the 1:50000 map attached.

∼ The prospecting area is approximately 2,587ha and will be focussed on but not
restricted to the How Mine South and Glen May/Glen High Areas
∼ The prospecting area includes Hope fountain claims that cover a total of 420Ha.
• Magisterial District:
o Bulawayo

• Name of nearest town:

o Bulawayo

2. DESCRIPTION OF THE PROPOSED PROJECT

2.1 Prospecting period

February 2018 to January 2021

2.2 Prospecting method

Trenches: 3,700m

Mobile drilling: Diamond Drill holes (35,000m)

2.3 Availability and utilization of resources

All machines will be diesel powered

Drinking water is provided to Drilling Contractors by How Mine pipeline.

Drinking water source is line supplying Bulawayo city and local How Mine and Chimedza
dams supply water is used for diamond drilling purposes.

Portable water for drilling site will be transported by a water bowser.

Temporary sanitary facilities will be constructed onsite for use during the life of the drilling
project.

* Potable water: Yes

Use will be made of existing infrastructure at How Mine facilities for sanitation.
c) Labour:

* Employed: 0

*Accommodated: 0

*Contractors: 9

2.4 Surface layout plan for long-term drilling operations, trenches, pits, shafts
 A layout plan drawn to a scale not smaller than 1:1000, indicating the main infrastructural
features of the operation is appended. The plan includes the following:

a) A north point.
b) The scale to which the plan is drawn.
c) Name and number of layout plan.
d) In relation to the farm boundaries (or other survey beacons) the size and
shape of the prospecting site and camp /office sites.
e) The position from which vehicles may gain access to the
prospecting/camp/office sites from national and provincial roads.
f) The position of the entire infrastructure, including water supply pipelines
and pollution control measures.
g) The topography in the immediate vicinity of the prospecting area.
h) The position of permanent markers which will demarcate the prospecting
area.
I) Dimensions of all items in relation to farm boundaries.
j) The position of rivers, streams, pans or dams.
k) Approximate extent of the prospecting area(s).

3. DESCRIPTION OF THE ENVIRONMENT

3.1 General Geology:

How Mine is located in the Bulawayo Greenstone Belt, some 30km south-east of the City of
Bulawayo in southern Zimbabwe. The deposit is situated in the Umzingwane Formation which
comprises of volcaniclastic sediments and lavas. The formation has suffered intense deformation
resulting in extension along a NW-SE axis and severe shortening on a SW-NE axis.

Locally, the deposit is a tensional feature in which solidification, carbonatisation and sulphidation
alteration, has invaded and mineralised a suite of lithologies including:
• Pyroclastic tuffs and agglomerate
• Silicate-facies banded iron formation
• Siltstones and black-shales and
• Diorite and granodiorite.
The tuffs & (cherty ironstones) are, by far, the major host lithology of the ore. Mineralization
occurs as disseminated sulphides, sulphide stringers and aggregates and, in places,
massive sulphides.

3.2 Topography (prospecting site and immediate surroundings):

The height of the hills range between 1,230m and 1,410m above sea level. The EPO
area drains South-east wards by a series of small streams into Umzingwane
.
 River. The area contains only small scale mine workings shown on the map attached.
These date back as far as before 1941.

3.3 Soil:

Clay rich soils derived from the shales and red soils from the banded iron formations
weathering.

3.4 Drainage (surface water):

Several steep generally South East flowing Umzingwane River and a series of tributaries
as well as south flowing Ngwabalozi streams which flow into How dam during rainfall
season.

3.5 Vegetation (grassland, bushveld, cultivated land, etc.):

The natural vegetation in the prospecting area consists of veldt which covers the gently
undulating hills and slopes within the mine lease. Various types of mixed woodland
species are naturally found throughout the area.

However, the natural vegetation in the prospecting area has not been significantly
disturbed particularly by forestry activities and historic mining activity dating back to the
early 1941. Invader plants include amongst others Eucalyptus (gum tree). The majority of
the vegetation in the area consists of indigenous plants.

3.6 Animal life:

No formal fauna and faunal survey has been undertaken for the prospecting area. The
following mammals have been observed within the area: cattle, bucks, baboons,
monkeys, hare and various small rodents and snakes.

4. FINANCIAL PROVISION

4.1 Details of financial provision made for rehabilitation:

Method: To be included in the annual geology budget for How Mine 2018 to
2021

Quantum: $2 100 000 -00

5. ALTERNATIVES/AMENDMENTS

5.1 APPLICATION FOR ACCEPTANCE OF ALTERNATIVES OR AMENDMENTS TO THE

PROVISIONS/GUIDELINES CONTAINED IN PART B
5.2 The authorities after consultation with the holder may also advise on additional
alternatives/ amendments of the exploration code of practice.
PART B

STANDARD BEMS PROGRAMME FOR PROSPECTING

This BEMS Programme (BEMSP) contains guidelines and operating procedures which after
approval, will be binding on the holder of a prospecting permit.

During prospecting, the applicant must ensure that the provisions of Parts A and B and any
conditions that may be imposed by authorities strictly adhered to at all times.

The rehabilitation of the surface of all prospected land shall be carried out:

* In accordance with this BEMSP.

* As an integral part of the prospecting operations;

* Simultaneously with such operations, unless determined otherwise in writing by the EMA.

* To the satisfaction of the EMA.

DEFINITIONS

Topsoil:
Means the layer of soil covering the earth and which provides a suitable environment for the
germination of seed allows the penetration of water, is a source of micro-organisms, plant nutrients
and in some cases seed, of a depth of 0, 5 metre.

Subsoil:
Those layers of soil and weathered rock immediately beneath the topsoil that overlay the hard rock
formation.

1. INFRASTRUCTURAL REQUIREMENTS AND OPERATING PROCEDURES

1.1 ACCESS ROADS ON THE MINING AREA

1.1.1 ESTABLISHING THE ACCESS ROAD ON THE MINING AREA

The access road to a prospecting site (long-term operation) in the mining area is to be established
in consultation with the landowner/tenant. The applicant/holder shall, as far as practicable, make
use of existing tracks or roads.

In the case of geological and soil mapping, mobile drilling (short-term operation), existing tracks and
roads shall be used, where practicable.

Should the access road or a portion thereof have to be newly constructed, the following must be
adhered to:

* The route shall be so selected that no trees, or a minimum number of trees, are felled for
this purpose and fence lines be followed as far as possible.

* Water courses and steep gradients shall be avoided as far as is practicable.

* Adequate drainage and erosion protection in the form of cut-off beams or trenches shall be
provided where necessary.

* In cases where a road needs to cross a water course, the crossing must be designed to the
satisfaction of the Inspector: Ministry of Mines and Minerals/EMA and in consultation with
the landowner/tenant.

The erection of gates in fence lines and the open or closed status of gates in new and existing
positions shall be clarified with the land owner/tenant and maintained throughout the prospecting
period.

Reasonable speeds not more than 50km/hr must be observed to avoid accidents, excessive noise,
dust and injury to livestock.

Note:

Design, construction and location of access to provincial roads must be in accordance with the
requirements of, and to the standards laid down by the Provincial or controlling authority.

1.1.2 MAINTENANCE

Newly constructed access roads on the prospecting site shall be maintained adequately in order to
minimize dust erosion or undue surface damage.

1.1.3 REHABILITATION

Whenever a prospecting permit is suspended, cancelled or abandoned or if it lapses and the holder
does not wish to renew the permit, any access road or portion thereof, constructed or upgraded by
the company for their purposes and which will no longer be required by the landowner/tenant, shall
be rehabilitated to the satisfaction of EMA. Roads shall be ripped or ploughed and if necessary
appropriately fertilised to ensure the regrowth of vegetation. Imported road construction materials
which may hamper regrowth of vegetation must be removed prior to rehabilitation and disposed of
in an approved manner.

If a reasonable assessment indicates that the re-establishment of vegetation is unacceptably slow,

the TSM may require that the soil be analysed and any deleterious effects on the soil arising from
the prospecting operation, be corrected and the area be seeded with a seed mix to his
specification.

Any gate or fence made or erected by the applicant/holder, which is not required by the landowner,
shall be removed.

1.2 CAMP/OFFICE SITES

1.2.1 ESTABLISHING THE CAMP/OFFICE SITE

Camp and office sites shall be sited and fenced (where necessary) in consultation with the
landowner/tenant. No camp or office site shall be located closer than 50 metres from a stream,
spring, dam or pan. The area required for the camp and office site must be kept to a minimum.

Vegetation shall not be unnecessarily disturbed and trees or shrubs shall, as far as is practicable,
not be damaged or felled.

No trees or shrubs will be felled or damaged for the purpose of obtaining firewood, unless otherwise
agreed to by the landowner/tenant.
Any impact such as noise, dust, bright lights etc. which may cause disturbance to the
landowner/tenant or any person lawfully living in the vicinity, shall be kept to a minimum.

Fires will only be allowed in designated areas specially constructed for this purpose. If required by
applicable legislation, a fire break shall be cleared around the perimeter of the camp and office
sites.

1.2.2 TOILET FACILITIES, WASTE WATER AND REFUSE DISPOSAL

Chemical toilet facilities (preferred) or other approved toilet facilities such as a septic drain shall be
used and sited on the camp site in such a way that they do not cause water or other pollution. The
use of existing facilities must be done in consultation with the landowner/tenant. In cases where
facilities are linked to existing sewerage structures, all necessary regulatory requirements
concerning construction and maintenance should be adhered to.

All effluent water from the camp washing facility shall be disposed of in a properly constructed
trench drain, situated as far as possible, but not less than 50 metres, from a stream, river, pan, dam
or borehole. Only domestic type wash water shall be allowed to enter this drain and any effluents
containing oil, grease or other industrial substances must be collected in a suitable receptacle and
removed from the site, either for resale or for appropriate disposal at a recognised facility. Spills
should be cleaned up immediately to the satisfaction of the TSM by removing the spills together
with the polluted soil and by disposing at a recognised facility.

Non-biodegradable refuse such as glass bottles, plastic bags, metal scrap, etc., shall be stored in a
container at a collecting point and collected on a regular basis and disposed of at a recognised
disposal facility (see Glossary of Terms). Precautions shall be taken to prevent any refuse from
spreading on and from the camp site. Biodegradable refuse generated from the camp site,
prospecting area, vehicle yard, storage area or any other area shall either be handled as above or
be buried in a pit excavated for that purpose and by covering it with layers of soil, incorporating a
final 0,5 meter thick layer of topsoil (where practicable). Provision should be made for future
subsidence.

1.2.3 REHABILITATION OF THE CAMP/OFFICE SITE

On completion of prospecting, all buildings, structures or objects on the camp/office site shall be
dealt with in accordance with the Mines and Minerals Act.

Where long-term camp and office sites have been denuded of vegetation/grass or where soils have
been compacted due to traffic, the surface shall be scarified or ripped and if necessary fertilised to
allow vegetation to establish rapidly. If a reasonable assessment indicates that the re-establishment
of vegetation is unacceptably slow, the TSM may require that the soil be analysed and any
deleterious effects on the soil arising from the prospecting operation, be corrected and the area be
seeded with a seed from adjacent areas.

Plans of the camp and office sites shall be drawn at selected points before and during prospecting
and kept on record for the TSM.

1.3 DRILLING SITE

1.3.1 ESTABLISHING THE DRILLING SITE

Drilling sites shall be sited on a practical basis after consultation with the landowner/tenant. The
area required for long-term drilling sites shall also be determined after consultation with the
landowner/tenant and kept to a minimum. Where necessary or if required by the EMA, the drilling
site shall be fenced. Activities shall be restricted to the agreed or fenced area.

In order to contain non-biodegradable oil and fuel spills, drip pans or PVC lining shall be provided
for mobile drills and drip pans or a thin concrete slab and/or with a PVC lining shall be installed
before stationary drill rigs (long-term) are erected.

In the case of a need for a water supply pipeline to be laid to a site, it shall be done in consultation
with the landowner/tenant and in such a manner that the surface and natural vegetation are not
unduly disturbed. Proper and frequent maintenance shall be done to minimize unnecessary
spillage.

In the case of long-term drilling operations, each drill hole shall have adequate measures to prevent
pollution of groundwater, drainage systems or topsoil by effluent during the drilling operation.

1.3.2 WASTE DISPOSAL

Separate pits shall be excavated and constructed for waste water and grease and oil polluted fluid.
When excavating these pits, the topsoil and the subsoil (see definitions) shall be stored separately.
The pit shall be surrounded by an earth wall of at least 50 cm in height and be constructed to
withstand the impact of heavy rainfall.

The contents of pits and drip pans must be disposed of at a recognised facility.

Any spill should be cleaned up immediately by removing the spill together with the polluted soil and
disposing of it at a recognised dumping facility to the satisfaction of the TSM.

1.3.3 REHABILITATION

On completion of prospecting, the drilling site shall be rehabilitated to the satisfaction of the EMA.
Pits shall be pumped dry and the contents disposed of.

After all foreign matter has been removed from the pits; the excavations shall be backfilled and
levelled with previous soil. No foreign matter such as cement or other rubble shall be introduced
into such backfilling.

All buildings, structures or other objects shall be dealt with in accordance with the Mines and
Minerals Act.

Drains shall be compacted and covered with a final layer of topsoil to a height of 10cm above the
surrounding ground surface.

All boreholes shall be covered and made safe by means of a concrete cap, unless otherwise
determined by the TSM. On cultivated land, where practicable, a concrete cap shall be installed at
least 1 metre below the surface. Boreholes shall be backfilled and compacted with appropriate inert
material and soil. No foreign matter such as rubble or waste material shall be introduced into the
hole.

Where drilling sites (long-term operation) have been denuded of vegetation/grass or where soils
have been compacted or crusts formed, the surface shall be ripped or ploughed and if necessary
appropriately fertilised to allow vegetation to grow rapidly. If a reasonable assessment indicates that
the re-establishment of vegetation is unacceptably slow, the TSM may require that the soil be
analysed and any deleterious effects on the soil arising from the prospecting operation, be
corrected and the area be seeded with a seed mix to his specification.

1.4 EXPLORATION TRENCHES AND PITS

1.4.1 ESTABLISHING EXPLORATION TRENCHES AND PITS

Exploration trenches and pits shall be sited on a practical basis, in consultation with the
landowner/tenant concerned.

The dimensions of such trenches and pits shall be limited to the minimum required to achieve the
desired results but shall not exceed the limitations for bulk sampling as provided for in this
document.

The soil from all the excavations shall be removed and stored in such a way and at such a place
that it will not cause damming up of water or washaways, or be eroded. Stockpiles will not exceed a
height of 2 metres.

Adequate measures shall be taken to ensure that soil erosion does not occur, especially in the case
of areas of steep gradients (hills, mountains).

Dangerous excavations shall be fenced off with appropriate danger signs displayed conspicuously
on the fencing.
No channelling or impediment of water flow shall be allowed in a river, stream or flood plain.

1.4.2 REHABILITATION

On completion of prospecting, excavations shall be rehabilitated to the satisfaction of EMA.

All foreign matter shall be removed from the site. Excavations shall be backfilled with, compacted
and levelled with previous soil. No foreign matter such as cement or other rubble shall be
introduced into such backfilling.

If a reasonable assessment indicates that the re-establishment of vegetation is unacceptably slow,

the TSM may require that the soil be analysed and any deleterious effects on the soil arising from
the prospecting operation, be corrected and the area be seeded with a seed mix to his
specification.

Compacted areas on prospecting sites that have been in operation for more than two years and
longer shall be ripped and ploughed to ensure regrowth of vegetation.

Plans of the exploration trenches, pits and shafts shall be drawn before and during prospecting and
kept on record.

1.5 ROCK SAMPLING ON HILLS AND MOUNTAINS AND GENERAL GRID SAMPLING OF
SOILS AND ROCKS

1.5.1 ESTABLISHING SITES

Sites for rock and soil sampling shall be selected on a practical basis, based on geological
information.
The size of rock and soil samples shall be limited to the minimum required to achieve the desired
analytical results, but shall not exceed the limitations for bulk sampling as provided for in this
document.

With regard to grid prospecting e.g. soil and/or rock sampling, bush clearing/line cutting shall be
kept to a minimum. Methods of survey site marking shall be in accordance with accepted practice.

1.5.2 REHABILITATION

On completion of prospecting, the sampling site shall be rehabilitated to the satisfaction of the EMA.

All foreign matter shall be removed from the site. Excavations shall be backfilled, compacted and
levelled with previously stored soil. No foreign matter such as concrete or other rubble shall be
introduced into such backfilling.

Plans of the sites of rock sampling that result in relatively big excavations and that have a
prominent visual impact, shall be drawn at selected points before and during prospecting and kept
on record.

1.6 MONITORING

Regular monitoring of all the quality and environmental management measures shall be done by
the holder of the prospecting permit in order to ensure that the provisions/guidelines contained in
the Exploration Code of Practice and other relevant legislation are being adhered to .

1.7 STATUTORY REQUIREMENTS

The holder of a prospecting permit shall remain liable for complying with the relevant provisions of
the relevant statutory requirements.