CBLT continues to build value for shareholders and looks set to benefit from Ready Set Gold

CBLT Inc. (TSXV: CBLT) had a great 2020 with the stock price up 200%. This is because the Company continues to make deals that add value for shareholders and avoids stock dilution, the latest deal being CBLT’s 6.1% share in today’s CSE listing of Ready Set Gold (CSE: RDY) (‘RDY’), a promising gold exploration play. RDY is anticipated to commence trading on January 12, 2021 under the symbol “RDY” on the Canadian Securities Exchange (CSE).

CBLT Inc. offers investors exposure to multiple Canadian cobalt and precious metals projects, an equity share in RDY and any sale proceeds, and management’s strong track record of deal making.

CBLT owns 1,833,333 shares (approximately 6.1%) of RDY. CBLT has received its first release from escrow of 458,333 free-trading shares. There are three remaining escrow releases of the same number of shares, to take place on or about April 18, June 18 and August 18, all in 2021. RDY’s last financing was carried out at C$0.75 per share, giving CBLT’s holding an implicit value of over $1,300,000. CBLT Inc. stands to benefit by selling some of its RDY holdings as it comes out of escrow to mitigate downside risk and holding on to the remainder to ride the ‘gold and Hemlo’ wave.

The Ready Set Gold announcement above gives a good summary of the company quoted below:

  • “A basket of gold projects in the Hemlo area in Ontario with a focus on high-grade gold exploration and development potential, including the 100% owned Northshore Gold Project hosting Indicated Resources of 391,000 oz Au in 12.36 million tonnes at a grade of 0.99 g/t and Inferred Resources of 824,000 oz Au in 29.58 million tonnes at 0.87 g/t Au using a cut-off grade of 0.50 g/t Au. (NI43-101 Technical Report – 2014).
  • A proven team of public company executives and explorers focusing on profitable exits for shareholders.
  • Low share float of 29.8 million shares outstanding and 37.1 million shares fully diluted.”

Note: Bold emphasis done by the author.

The background on this deal involved CBLT Inc. selling its 56% share of the Northshore Gold Property Joint Venture to Omni Commerce Corp. (“Omni“). For the sale CBLT Inc. received $350,000 in cash and $1,100,000 in common shares of Omni. Subsequently RDY formed out of an amalgamation agreement dated August 12, 2020, between Omni and RDY, effectively meaning CBLT Inc. became a RDY equity holder.

A deeper look at Ready Set Gold (‘RDY’)

RDY states that its mission is to discover, expand, develop high grade, economic gold deposits on proven and prolific greenstone belts in Canada with an initial focus on Ontario. As mentioned above in the CBLT announcement RDY has already discovered significant gold ounces, or as reported in their presentation a total of 1.22 million ounces. The indicative market cap for the initial listing is C$22 million fully diluted, which gives a market cap per ounce of US$18/oz, well below most competitors. Of course RDY is a new listing and has a significant percentage of their gold still in the lower Inferred category, so this must be taken into consideration when comparing to peers.

2021 will see Phase 1 drilling of 3,000 meters of infill drilling and upgrading of the Inferred Resource. This will be followed by Phase 2 drilling of another 3,000 meters, including of new targets. This should lead to plenty of news flow in H1 2021.

Ready Set Gold’s 3 key gold projects – Northshore, Hemlo Eastern Flanks, and Emmons Peak

Ready Set Gold company highlights

Source: RDY company presentation

About CBLT Inc.

CBLT Inc. is a project generator with a focus on quality cobalt projects in safe jurisdictions such as Canada. CBLT  has numerous projects in Canada. CBLT’s flagship is the Copper Prince Project located in Falconbridge Township, in the Sudbury Mining District of Ontario, Canada. The Project has Cu-Ni-PGM and gold occurrences. Sample 616311 found 54.3g/t Au and 5,020 ppm (0.502%) Co. CBLT also owns the Chilton Cobalt Project in the Grenville Subprovince in Quebec, which contains two areas with large nickel-copper-cobalt-chromium findings. In total CBLT has its hands in over 10 projects in Canada. You can read more in my past articles here and here.

Closing remarks

CBLT Inc. still has a low market cap of only C$4.7 million despite their tremendous stock price performance in 2020. By buying into CBLT Inc. investors gain exposure to over 10 projects in Canada with base metals (Co, Ni, Cu) and precious metals potential (Au, Ag, PGMs), some equity exposure in Ready Set Gold which is due to list today, and management’s deal making skills that has a proven track record of adding value for shareholders without stock dilution. Be quick!




Peter Clausi on how CBLT has used creative M&As in gold and battery metals to make money for their shareholders

In a recent InvestorIntel interview, Tracy Weslosky asks Peter Clausi, President, CEO and Director of CBLT Inc. (TSXV: CBLT) to explain what he meant by his line that “a mining company can make more money with a pen than with a drill bit.” He responds on how this works with market cycles and then adds that as a result of their focus on strategic M&A activities that “CBLT has not had to do financing since 2016.” He then goes on to explain how CBLT has found creative M&As to make money for their shareholders.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Peter went on to say, “Two years ago, CBLT bought a portfolio of assets for little over $1 million in stock. Northshore gold was one of the assets in the portfolio which was sold for $1.45 million.” He also provided an update on the Big Duck Lake gold property on which Peter said “…is analogous to the Moose Lake Porphyry which hosts the Hemlo Gold Camp.” Commenting on the cobalt market Peter said, “If you believe that we are going to greenify the world, if you believe that there is a run on Lithium — then you have to believe that there is a run on cobalt.”

To watch the full interview, click here

About CBLT Inc.

CBLT Inc. is a Canadian mineral exploration company with a proven leadership team, targeting cobalt and gold in reliable mining jurisdictions. CBLT is well-poised to deliver real value to its shareholders.

To learn more about CBLT Inc., click here

Disclaimer: CBLT Inc. is an advertorial member of InvestorIntel Corp.




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

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.




GTA Resources’ Peter Clausi on hitting ‘bonanza’ grade gold at Big Duck Lake

March 16, 2018 – “The drill results were very strong. We put down 4 holes and all 4 holes hit the gold zone at what is called The Coco-Estelle showing. We proved up the historic mineralization there. One of the holes returned bonanza grade gold. I know it is not a precise term, but that is what we call it. 823 grams over half a meter and 44 meters of 1.6 grams of gold is a pretty good hole.” states Peter Clausi, CEO, President and Director of GTA Resources and Mining Inc. (TSXV: GTA), in an interview with InvestorIntel’s Andy Gaudry.

Andy Gaudry: We would like an update of Big Duck Lake.

Peter Clausi: Within GTA. 

Andy Gaudry: Yes. 

Peter Clausi: Big Duck Lake is in Hemlo, 25 kilometers north of our other project in Hemlo called Northshore. At Northshore we have about 1.2 million ounces of indicated plus inferred of gold. Big Duck Lake is right next door to the former producing Winston Lake Mine. It is a polymetallic area. Our technical team thinks we are on the same geologic setting as the former producing mine. We purchased the property and drilled it. Drill results came out in January.

Andy Gaudry: That is wonderful. How were those results and how does that affect GTA moving forward?

Peter Clausi: The drill results were very strong. We put down 4 holes and all 4 holes hit the gold zone at what is called The Coco-Estelle showing. We proved up the historic mineralization there. One of the holes returned bonanza grade gold. I know it is not a precise term, but that is what we call it. 823 grams over half a meter and 44 meters of 1.6 grams of gold is a pretty good hole.

Andy Gaudry: Wonderful.

Peter Clausi: We are happy with it. We will raise some more money, go back in the field. We will drill again and create more value for shareholders.

Andy Gaudry:  That is wonderful. Back to shareholders, what can they expect for the next quarter or two from GTA? 

Peter Clausi: We are doing engineering work on the million ounces at Northshore. We are looking at environmental and how do you put that into production. At the same time we will be considering our next round of drilling at Big Duck Lake…to access the complete interview, click here

Disclaimer: GTA Resources and Mining Inc. is an advertorial member of InvestorIntel Corp.




Success! Sunvest Minerals exploration yields high copper values and gold and silver grades

In the same quarter that copper surged to three-year highs, and the price of gold began a bullish rampage that appears to know no bounds, a drill project completed by Sunvest Minerals Corp. (TSXV: SSS) (“Sunvest”) on their Evening Star property returned high copper values of up to 7.45%, as well as gold and silver grades of up to 1.81 g/t and 138 g/t respectively. Sunvest are chiefly focused on pursuing the development of copper, cobalt, gold and silver resources, the markets for all of which are looking extremely healthy this fall and beyond.

The Evening Star property is located in west central Nevada, in Mineral County, and is comprised of 43 unpatented mineral lode claims totaling 660 acres. Having confirmed significant precious metal values within the copper and base metals mineralization, a short surface program will begin soon and the company are permitted for additional drilling which is expected to recommence shortly.

These results follow impressive grab sample and drilling at the company’s McKinnon Hawkins project which returned values of up to 33.5 g/t Au. The main zone of the resource has a NI 43-101 estimate of 239,100 ounces of gold (4,957,000 tonnes at 1.50 g/t Au), and, significantly, the team intersected an entirely new gold-bearing region in two holes located to the north of the main zone.

The new area, designated as the “Taylor Extension”, appears to approximately parallel the east-west strike of the Main Zone and is open along strike and at depth. The Taylor Extension represents a broad new mineralized environment which has returned sample values including 2.28 g/t Au over 3.0 meters; if the team proves the area to be as continuous as the main zone, it has serious potential to add significant resources to the project.

This should be no problem for the Sunvest ensemble; one of the company’s directors is the son of Don McKinnon himself. Don Mckinnon Sr was one of the men who discovered Ontario’s fourth largest mining camp, Hemlo, in 1981, and his son has been involved in the mining exploration industry from a very young age, managing all aspects of exploration including property acquisition, grass roots exploration and overseeing projects up to the development stage.

Mr McKinnon is joined by a team with exceptional experience in the industry led by Victor Bradley (chairman of the board and director). Over the past 30 years Bradley has founded, financed and operated several mining and advanced stage companies, including Yamana Gold Inc., Aura Minerals Inc. and Nevoro Inc. (sold to Starfield Resources). He was chairman of Osisko Mining Corp. until its $3.9 billion sale in 2014; Osisko managed to crack open a porphyry gold structure at Malartic, Quebec, creating the largest open pit gold mine in Canada.

Clearly, management are more than capable of taking these projects to production, and possibly even in time to catch the top end of the current metals bull run. Anyone who’s been watching the ascent of gold recently will be aware that it recently traversed the $1,350/oz resistance on the back of continuing geopolitical tensions and a tumbling dollar, but copper has had a similarly bullish year, seemingly recovering entirely from its post-recession correction period and steaming ahead amid renewed global construction efforts. Any investor looking for a truly long position on both gold and copper should consider Sunvest’s share price as having upside potential, as their recent additions create potential for considerable resource expansion.




Betting on a name and the glory of gold

Deciding which of Sunvest’s project is the main play depends on one’s point of view. If I reached into the bag and pulled out the Roy Mine as something I could take home I would be a happy man indeed. However, the main game at Sunvest Minerals Corp. (TSXV: SSS) as far as the public is concerned is the McKinnon-Hawkins Gold Project.

McKinnon-Hawkins Gold Project

The McKinnon property is a 364 claim unit property covering 5,824 ha. It is one of three properties that collectively form Sunvest’s Puskuta Gold Project and together cover over 32 km of strike length of the Puskuta Deformation Zone. The project is located in the Hawkins and Walls Townships, Sault Ste. Marie & Porcupine Mining Divisions, Ontario.

Understandably being in close proximity to such storied mining camps the McKinnon property is well served with access infrastructure being accessible by all-weather logging roads extending south from Hearst, Ontario. Hearst is located on Trans-Canada Highway 11, has a population of approximately 5,090, and is the northern terminus of Algoma Central Railway. The property is actually crossed by the Algoma Central Railway and is in close proximity to the Canadian National Railway at Oba Station. Eventually ore could be loaded on nearby railway and railed to Hemlo for milling.

First Some History

Not wanting to miss an opportunity to highlight that the property has “pedigree” the use of the name McKinnon has considerable logic. The property was initially staked by the late Donald McKinnon in 1997, based on having similar geological characteristics to the Hemlo gold deposits (+ 20 million ounces and three mines) located 140 km to the southwest. The deposit has been sporadically explored for gold beginning with the discovery of the Taylor Prospect in 1923. The concession hosts the former Shenango Gold Mine that produced intermittently between 1937 and 1945. Exploration by Falconbridge from 1983 to 1986 was the most comprehensive exploration program on the property with drilling and trenching defining an auriferous shear zone with values of 0.5 to 4.0 g/t Au over 4 to 30 m widths along a 3.7 km trend. This yielded the data for the resource which we shall discuss anon.

Interestingly the current team includes Don Mckinnon Jr. who worked on the property for his father as a young prospector plus Robert Weicker, a past chief geologist at Hemlo amongst others.

Some Geology

The concession straddles the one kilometre wide Puskuta Deformation Zone that is a steeply-dipping, dextral, transcurrent deformation zone that on a regional scale bounds the south side of the Kabinakagami Lake greenstone belt and controls the location of gold mineralization. This deformation zone is interpreted as a gold mineralized fault structure that potentially links the Destor-Porcupine Deformation Zone to the east with the Hemlo Deformation Zone to the west. In the opinion of consultant that wrote the NI43-101 compliant resource report the McKinnon deposit has characteristics of shear-hosted orogenic gold deposits in a medium metamorphic grade environment.

The property is underlain by predominately Archean rocks of the Kabinakagami Lake greenstone belt that is part of the Wawa Subprovince of the Superior Province in the Canadian Shield. This east-west trending belt is one to six kilometers wide and composed of predominantly metavolcanic and metasedimentary rocks.

Gold mineralization on the McKinnon property is mainly associated with the sheared contact of the tonalite and adjacent mafic metavolcanic rocks to the north. Mineralization is associated with sericite-pyrite-silica alteration and higher gold values are generally found in felsic rocks that have been highly silicified. The main zone of gold mineralization is a 3.7 km long zone of low-grade gold mineralization that has been defined to approximately 200 m depth. Within the deposit there are a number of higher grade historical occurrences including the past-producing Shenango Gold Mine.

Falconbridge Weighs In

The Falconbridge exploration work undertaken from 1983 to 1986 included 79 diamond drill holes for a total of approximately 14,282 m and excavation of approximately 36 trenches for surface sampling. This drilling and trenching defined an auriferous shear zone with values of 0.5 to 4.0 g/t Au over 4 to 30 m widths along a 3.7 km trend. The majority of the Falconbridge holes tested the zone at depths of less than 200 m. Two deep holes (GO-75 & 76) confirmed that the zone persists to approximately 700 m.

The Resource

The data from the work done by Falconbridge forms the basis of the current Resource Estimate. This resource is categorized as Inferred with 239,100 ounces of gold based on an open-pit application, estimated Inferred Resources of 4,957,000 tonnes at a grade of 1.50 g/t Au.

The company is now in the throes of its own drilling campaign on the deposit with five holes drilled so far.

Conclusion

With the long drought in mining investment coming to an end in 2016 it became obvious that many years of underinvestment in new exploration meant that the “pipeline was dry” particularly in the gold space that voraciously demands ever more projects.

With projects in outlandish locations still under a cloud due to excessive capex restraints it falls to projects in the “tried and true” locations that have pedigree (and road and rail) to fill the gap. It will be interesting to follow the evolution of work at McKinnon over coming months hopefully with a view towards an expanded and upgraded resource and an eventual mine plan. Those three evergreen words still hold true, production, production and production.




Harte Gold – Sweet Smell of the Sugar Zone

The trend towards small-scale mining (or as we are tending to call it “right-sized” mining) seems to be gaining traction. Bankers don’t like it because it means smaller financings and less fees and consultants absolutely hate it because it means less mindless-drilling, wheel-spinning and production of useless tomes of BFS and DFS drivel. The group that does like it includes retail investors and us, while institutional investors find that, quite literally, they cannot get enough of these companies. We have highlighted Anaconda in the past for this strategy (to which it has added another property this week) and had favoured Minnova for proposing something similar (though it has seemingly lost track from production and gone into some continuous financing mode). In the latter case it really takes some doing to make your previous five announcements, over four months, solely about financings.

Then there is Harte Gold Corp. (TSX:HRT), which seems destined to shortly join the ranks of producers with its mine in Ontario. We shall do an overview here on the progress thus far.

Hunting in Hemlo Territory

Harte Gold Corp. is focused on the exploration and development of its 100% owned Sugar Zone property and is currently prepping for a “bulk sample” at the deposit that should yield up to 25,000 ozs Au. The Sugar Zone property is located in Ontario, approximately 60 km east of the Hemlo area gold mines, 25 km north of White River off the Trans-Canada Highway (#17).  The property can be accessed via a series of logging roads and drill trails extending north from the community of White River.

Sugar_zone_ont

Past Work at the Sugar Zone

Exploration for gold and base metals has been performed on the property since 1969. The original focus was base metals when Canex Aerial Exploration Ltd., in 1969, drilled three diamond drillholes in the vicinity of the mafic/ultramafic intrusives and flows near the north end of Dayohessarah Lake. Results include an intersection of 0.326% Ni and 0.08% Cu over 5 ft. in metagabbroic rocks.

In the intervening decades the main explorers were Hemlo Gold and Corona Gold conducting various campaigns with the primarily focus, understandably, being gold.

It was in 2010 that Harte Gold initiated its first drilling program. During March, a diamond drill program totalling 2,097.31 m in 12 holes, two of which were aborted before reaching the Sugar Zone. The program was successful in locating a high grade area of the Sugar Zone located near surface and directly under a series of surface trenches. The drill program was also successful in determining that the Sugar Zone has significant mineralization below 300m depth.

Geology

The Dayohessarah Greenstone Belt is situated between two larger greenstone belts; the Hemlo Greenstone Belt to the west and the Kabinakagami Greenstone Belt to the east. The belt is approximately 36 km in length and varies in width from 1.5 to 5.5 km. Principal lithologies in the belt are moderately to highly deformed metamorphosed volcanics, volcanoclastics and sediments that have been enclosed and intruded by tonalitic to granodioritic quartz-porphyry plutons.

The belt has been strongly foliated, flattened and strained. Deformation seen in the supracrustal rocks has been interpreted to be related to the emplacement of the Strickland Pluton. The strain fabric is best observed a few hundred meters from the Strickland Pluton in the Sugar Zone, which has been characterized as the most severely strained part of the belt. The Sugar Zone is defined by sets of parallel mineralized quartz veining, quartz flooding of strongly altered wallrock, thin intermediate porphyry lenses and dykes/sills parallel to stratigraphy and foliation, and gold mineralization.

Near Dayohessarah Lake, the belt is dominated by a basal sequence of massive to pillowed mafic volcanics. Several fine to medium grained, intermediate feldspar porphyry dykes/sills have intruded and swarmed the belt. Swarming of the intermediate porphyry dykes is more intense east of Dayohessarah Lake. These intermediate dykes/sills vary in abundance across the property, but increase in regularity within, and around, the Sugar Zone.

Harte_zones

There are three main targets for Harte, there are:

Sugar Zone is a high-grade 500,000 oz gold deposit open at depth and on strike, gold mineralization extends to 1,000m depth, target >1mn oz. Drilling in 2015 extended strike length from 800m to 1,100m. Discovery of Footwall Zone confirms parallel zone potential.

Wolf Zone is a 2010 discovery with 9.5 g/t over 7.5m, including high-grade core of 22.9 g/t over 3m. Subsequent drilling extended mineralization at depth and on strike.

Contact Zone is more formative with an IP/Mag survey in 2014 identifying mafic volcanic/sedimentary contact. Drilling in 2015 confirmed the Hemlo setting, pathfinder elements and gold values.

Resource

The latest resource estimate for the Sugar Zone was included in the PEA published in 2015.

Sugar_zone_resource

CapEx

Financial assumptions in the 2012 PEA have been superseded by adverse price action in the commodities and resultant downward revision of all  costs, we moved the site to an area roughly mid-point of the deposit, which is smaller than previous and much less expensive to develop. The 2012 PEA had posited CapEx of around $118mn.

Harte Gold plans to update the PEA the second half of 2016. CapEx is probably going to be around $25 – $30 million only and consists of a gravity mill (no cyanide circuit), tailings (benign) facility and running hydro-sourced power to site.

The company believes that normalized operating costs under commercial production are expected to be less than CAD$600 per ounce.

The Road to Production

The key to the current strategy is the extraction of a 70,000 tonne Bulk Sample which should yield approximately 25,000oz Au. It is calling this an Advanced Exploration and Bulk Sampling Program (AEBSP). This will essentially be the “production you are having when you are not having production”. To this end the company signed a Heads of Agreement for a Fixed Price mining contract has been signed with Technica Mining in the middle of last year. Technica agreed to perform the work at a cost of $20mn, with cost reimbursement of $15mn, through the duration of the contract and the balance payable in cash or common shares of Harte Gold, as determined on completion of the contract.

Technica Mining mobilized personnel and equipment to site shortly thereafter. The approach to the Portal face was excavated and the screening and bolting of the face together with surface work to support underground mining were completed. The first blast to cut the Portal and go underground occurred in the middle of third quarter.

sugar_zone_portal

The optimized mine plan will accelerate the AEBSP production schedule and shorten project timelines. Recently completed in-fill drilling in the Bulk Sample area and in two previously drilled areas of gold mineralization parallel to the proposed ramp have been added into a new mine plan with a view to optimizing mining operations and accelerating project timelines. The bulk sample is already permitted.

The company expects the bulk sample to make money which will be re-invested in commercial permitting and exploration drilling below the Sugar Zone Deposit and along the 2 km distance between the Sugar Zone and Wolf Zone.

Deal with Barrick

In mid-2015, Barrick Gold and Harte inked a Letter of Intent to process the 70,000 tonne Sugar Zone Bulk Sample at the nearby Hemlo Mill with the final Agreement expected to be signed by the end of August. The Hemlo Mill is a standard grind, leach and carbon-in-pulp extraction mill. This will involve transport over 60 kms.

Financing Deal with Auramet

In an interesting development, Harte Gold has by-passed the equity market for the financing needed for the final push to production with a gold loan. The novel thing is that the gold loan will be on material yielded from the aforementioned bulk sample rather than “normal” production.

Back in July of 2015, Harte Gold announced it had signed an indicative Term Sheet with Auramet International LLC for a gold loan of up to US$6mn together with a working capital facility. Both of these financing elements being subject to due diligence, credit review and legal documentation. Hopefully an announcement will be forthcoming on this score in coming weeks.

Auramet is a metals trader and financier based in New Jersey. Its merchant banking activities include working capital facilities, in-process refining facilities, pre-production advances, bridge facilities and pre-export financing. The most well-known deal orchestrated by Auramet was a $10mn gold loan for Banro, which was put together in 2013.

Conclusion

Production remains king and long lead times are death to a gold mining story. With the Canadian dollar in a good place versus the USD (well at least if you are a miner) and the gold price on the mend (in USD-terms) waiting around for consultants to get their acts together is a recipe for investor boredom. Harte have short-circuited that process and aim to be putting some “ounces on the table” in a limited time frame and to that end have got their financing and engineering ducks in a row in 2015, with a view to delivering investors action in 2016. There is little we can find fault with in that!