EDITOR: | July 3rd, 2018

Harte Gold: A low cost Canadian miner expected to be producing by Q3 2018

| July 03, 2018 | No Comments

Harte Gold Corp. (TSX: HRT) is an Ontario based gold mine developer, focused on advancing its wholly owned Sugar Zone property located in northern Ontario, approximately 68 km east of the Hemlo area gold mines, 30 km north of White River. Of the top 4 major mine camps in Canada, Hemlo is the least explored.

The Sugar Zone Property holds an NI 43-101 compliant Indicated Resource of 1,117,000 tonnes grading 8.41 grams/ton Au, for 302,000 ounces of contained gold; and an Inferred Resource of 417,000 tonnes grading 7.13 grams/ton Au, for 95,000 ounces of contained gold. The project has one of the world’s highest grade gold deposits.

Their second project the Stoughton-Abitibi Property is located on, and adjacent to, the Destor-Porcupine Fault, 110 km east of Timmins (Canada’s Greatest Gold Camp). The property covers a 4 km strike length with an overall length of more than 11 km along the upper portions of the property. Management is currently in the process of evaluating available data associated with the Stoughton-Abitibi property in order to assess the scope of a future exploration program.

Location map

The Sugar Zone Project

The Sugar Zone Property is situated in a well-established mining region, and Harte Gold continues to work with the Ontario Ministries to finalize the remaining permits required to commission the process plant in July 2018 and start commercial production in early Q3 2018.

The Project is road accessible and is accessed from a secondary paved highway (631) extending north from White River that passes 10 km east of the Sugar Zone Property. A Hydro One electrical transmission line and the Canadian Pacific transcontinental main rail line pass through White River.

On May 3, 2018 the Company announced the results of a positive Preliminary Economic Assessment (“PEA”) for the Sugar Zone project. The post tax NPV5% was C$244m, with a post tax IRR of 42%. The PEA is based on 80,700 ounces of average annual gold production, at a C1 cash cost of US$507/oz Au and AISC of US$708/oz Au, over an 11 year mine life from 2019 onwards. As of March 31 2018, C$58 million remains to be spent (in 2018) on process plant completion, underground development and working capital, with process plant construction over 80% complete.

Gold Price Sensitivities

Stephen G. Roman, President and CEO, commented:The PEA demonstrates an economically robust, low cost operation with a scalable mine plan designed to match underground development. With a target of 1,400 tonnes per day producing over 100,000 ounces per year, Harte Gold will have the cash flow to continue property wide exploration and the ability to target high impact acquisition opportunities.”

He also stated: “Harte Gold has had a very productive start to 2018. The Company tripled its mineral resource estimate, arranged a debt financing solution that fully funds the Sugar Zone Project to production, delivered a Preliminary Economic Assessment with significantly improved project economics and signed an Impact Benefits Agreement with Pic Mobert First Nation. The Company’s focus now is on achieving commercial production, targeted for Q3 2018 and continuing aggressive infill and expansion drill programs, expected to improve grade and add resources.”

Historically prized for its beauty and more importantly, having long-term storage value, societies have prized gold as a safe investment to be stored during turbulent times. With a market cap of C$ 212.6 m, Harte Gold is fully funded to first production, and expected to commence production in Q3 2018. Harte Gold has high grade, low costs, experienced management, an 11 year mine life, and an exploration upside.


Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment, and a Graduate Diploma in Financial Planning. He ... <Read more about Matthew Bohlsen>

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