$25 million financing deal brings Harte a step closer to gold production
A string of recent successes at their Sugar Zone property in Ontario has brought Harte Gold Corp. (“Harte”) (TSX: HRT) a step closer to their goal of production.
So my version – again this wastes my time for what should be an easy read over: Over the years, Harte has been steadily adding value to its property. Harte first undertook drilling back in 2010 when it located a near-surface, high grade area of gold directly under a series of surface trenches, which showed conclusively that the Sugar Zone had significant mineralisation below 300m depth. Then in 2012, the Company received a positive preliminary economic assessment which promised an annual revenue of $98million over a six-year mine life.
On November 15 Harte announced that they had discovered an entirely new deposit located between two previously explored zones. The new ore is contained within four mineralised areas over twenty-eight meters and features grades of up to 60g/t. The area was included in a 3D induced polarisation/resistivity survey completed in the spring and summer of 2016. Subsequently it was drilled as part of the project’s advanced exploration and bulk sampling program and now represents a significant addition to the company’s asset.
From impressive grades, to an impressive management team, Harte boasts a team comprised of strong technical and operational backgrounds that are responsible for bringing us the discovery and subsequent sale of Gold Eagle Mines Ltd. to Goldcorp for $1.5bn in 2008.
In August 2016, management completed the initial sampling of material efficiently and within the timeline provided. The results showed a record 5,942 tonnes of ore, producing refined material at an average grade of 9.84g/t. Stephen Roman, President and CEO of Harte, commented:
“The advanced exploration bulk sample program continues to exceed expectations. We are pleased with the progress to date and would like to take this opportunity to express our appreciation of the excellent work being done by our geological and technical team and the contract miner, Technica Mining Inc. with whom we have accomplished these milestones efficiently and safely with no lost time accidents”.
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On November 24th, Harte revealed that they had secured proceeds of $25 million to accelerate exploration and development work at the Sugar Zone property. This financing was recently concluded on the 14th of December.
The financing consists of a $15 million from Cantor Fitzgerald Canada Corporation and a concurrent $10 million from Appian Natural Resources Fund for the advanced exploration and bulk sampling program still underway. A permit to extract a further 30,000 tonnes of material for commercial production is expected before the end of Q1 2017, and Harte is hopeful that full commercial production can be underway by Autumn 2017. We understand that in this respect, Harte has already commissioned BluMetric Environmental Inc. to design, supply and install a green million dollar mine-water treatment system.
Harte’s Sugar Zone is a sweet deal. The deposit is high-grade, surrounded by producing gold mines and in a politically stable authority. Positive cash flow has already been achieved from the extraction of 70,000 tonnes of ore, under a toll milling agreement with Barrick Gold at nearby Hemlo Mine, and full commercial production is expected to be at 500tpd, with multi-million ounce potential over time.
Lara has been an analyst for over ten years, starting her career as an equity analyst at Foord Asset Management and more recently as the ... <Read more about Lara Smith>