Harte Gold announces plans to strengthen operations through management additions as gold production increases

Interim CEO Stephen G. Roman of Harte Gold told InvestorIntel: “We are currently ramping up mining operations to 800 tonnes per day and as part of this transition from exploration company to operating company……The plan is to bring in a professional mine operations team to optimize production and continue the growth profile to 1,200 tonnes per day which will put us in the 100,000 (gold) ounces per year production category.”

On both accounts this is good news for shareholders. A “professional mine operations team” at Harte Gold is a good move as the gold developer has now transitioned to a gold producer. Stephen G. Roman will oversee this transition and build a team capable of growing Harte Gold into a profitable enterprise and continue an aggressive exploration program to build ounces on the Sugar Zone property. He will continue to serve the Company as non-executive Chairman of the Board. He will also serve as Interim CEO pending the appointment of a new President and CEO, expected to occur by October 28, 2019.

Harte Gold Corp. (TSX: HRT) is Ontario’s newest gold producer through its Sugar Zone Mine in White River Ontario. The transition from an exploration company to an operating company will still be overseen by Stephen G. Roman, as he will continue to serve the Company as a non-executive Chairman of the Board. Harte Gold will also continue their aggressive exploration program building ounces on their 79,335 hectare Sugar Zone property. The current resource estimate is 1,108,000 contained gold ounces @8.12g/t Indicated and 558,00 contained gold ounces @5.88g/t Inferred, all at a 3g/t Au cut-off.

Harte Gold’s 79,335 hectare Sugar Zone property and Sugar Zone mine

Harte Gold reports Q2 production increase of 42% over Q1

Harte Gold recently reported a second Quarter production of 7,754 gold ounces, an increase of 42% over Q1. The Company is continuing to ramp up to 800 tonnes per day of processed ore. Net revenue was $11.8 million, a 50% increase quarter over quarter that was attributed to increased gold production that averaged a realized price for the quarter of US $1,305 per payable ounce. The mill processed 53,216 tonnes of ore on a 591 tpd average. Note this will improve as average head grade processed was 4.89 g/t resulting from the blended grade of mine production and the lower grade surface stockpiles. Average head grade for mined ore was 6.01 g/t, so this will be the guide going forward as the surface stockpiles are now depleted.

Sugar Zone South continues to expand

The Company’s high grade Sugar Zone South continues to expand with current mineralization extended 300 meters along strike and 200 meters down dip remaining open in both directions. In the upper areas of the Sugar Zone South mineralized intersections have returned up to 23.59 g/t over 2.02 meters. As the high grade Sugar Zone South discovery continues to expand the Company expects to incorporate this new zone in an updated mineral resource estimate by the end of 2019. Combined, the Flat Lake and TNT Zones represent a previously unknown altered and mineralized horizon with anomalous gold and base metal values which occur along a strike length in excess of 10 km.

Harte Gold’s TNT and Flat Lake combined strike length is now in excess of 10 km

Costs to reduce as scale takes effect

Harte Gold stated: “At a stable 800 tpd run-rate, cash costs are expected to reduce to US$551 per ounce (AISC of US$957 per ounce) for 2020 and US$580 per ounce (AISC of $891 per ounce) over the life of mine.” This should mean 2020 will be a very good year for Harte, even better if the gold price holds above US$1,500/oz.

Appian Natural resources Fund is granted more warrants

Harte has agreed to issue Appian 3,950,000 warrants to purchase common shares of the Company at an exercise price of $0.35 per common share, expiring on August 28, 2022. Following the issuance of the new warrants, assuming the exercise of all of its warrants, Appian would own an aggregate of 180,447,991 common shares of Harte (representing a further increase of approximately 1.7% to 27.0% of the outstanding common shares of Harte).

The new management changes will be a good thing as Harte Gold will benefit from having the right team to match the new producer stage of mining. Underground mining is fraught with challenges and requires significant ongoing capital expenditure. Investors took a short term hit on the recent news (including the warrants), but really in the near term, the management bolster is a good move for Harte Gold.

Headquartered in Toronto Ontario Canada, Harte Gold Corp. has a market cap of C$ 173.3 million.




Refinancing and production numbers positions Harte Gold to prosper

It’s been a very interesting last few weeks and it could be argued that President Trump is likely to continue to take a hard line in the trade dealings with China. The talk of a global slowdown or recession is a real threat especially with the prospect ahead of full scale tariff war between the world’s two largest economies. In turbulent times such as we are seeing right now, gold has always been considered a safe haven for investors.

Harte Gold Corp. (TSX: HRT) is focused on its 100% owned Sugar Zone Property in Ontario Canada which encompasses 79,335 hectares. The Company state they have a 30 km strike potential with only 5km so far explored.

The Sugar Zone Property three deposits – Sugar Zone, Middle Zone, and Wolf Zone

The Sugar Zone Property Resource estimate

The Sugar Zone Property’s NI 43-101 compliant Mineral Resource Estimate dated February 19, 2019 contains an Indicated Mineral Resource of 4,243,000 tonnes grading 8.12 g/t for 1,108,000 ounces contained gold and an Inferred Mineral Resource of 2,954,000 tonnes, grading 5.88 g/t for 558,000 ounces contained gold, all at a 3 g/t cut off. This means the total indicated and inferred resource is now at 1.666m ounces of gold, and at good grades.

Stephen G. Roman, Chairman, President and CEO of Harte Gold Corp. stated: “We do a lot of exploration at Harte Gold around the Sugar Zone mine. We have been extending the deposit from an initial small resource of about 100,000 ounces, were now getting close I would say to 2 million ounces and that’s been done along a five-kilometer strike length.”

Harte’s latest discovery is south of the Sugar Zone in an area that is called the upper zone of the actual Sugar Zone deposit. This is an area that hasn’t been previously drilled and extends the ore body 200 meters further south. This has the potential to add a significant amount of new ounces to the Company’s resource.

Sugar Zone Feasibility Study

In April Harte announced a positive Feasibility Study with a declaration of a Probable Mineral Reserve of 3.9 million tonnes at 7.1 g/t Au, containing 890,000 ounces of gold. Based on a 800 TPD operation that will produce 61,000 gold ounces pa over a 14 year mine life, the post-tax NPV 5% was C$266.9 million. Operating costs were estimated at a cash operating cost of US$643/oz and an all in sustaining cost (“AISC”) of US$845/oz. Regarding CapEx the Company state: “Effective March 31, 2019, all capital expenditures for process plant construction and related site infrastructure have been spent. The largest sustaining capital item is future underground development costs.”

Expansion plan to move from 61,000 oz pa in 2020 to 95,000 oz pa from 2022

The Feasibility Study also confirmed the mine is capable of 1,200 TPD based on current mineral reserves enabling production to increase to 95,000 gold ounces annually. Through the benefit of increased scale, this can potentially reduce cash costs.

Gold production at the Sugar Zone mine is now progressing well

Declaring commercial production in January 2019 during the middle of winter and the problems associated with it, the Company went on to have a better March having equipment and labor in place. Harte’s Q1 results reflected these winter difficulties with production 10% below plan; however, Harte did manage to produce 5,476 ounces of gold. Overall revenues for the quarter were 17% below plan as a result of lower gold production and sales.

CEO Stephen G. Roman commented: “The quarter started with many winter challenges affecting our mining operations. We have progressed through our start-up issues and operations continue to improve.”

Harte secures US$82.5 million financing package

On June 12, 2019 the Company announced that it has signed a credit agreement with BNP Paribas in respect of its previously-announced US$72.5 million debt financing package. US$10m is coming from ANR Investments B.V. (“Appian”). The proceeds of the Credit Agreement will be used for general corporate purposes and the refinancing of existing indebtedness of the Company.

Next steps for Harte Gold

2019 is a development year for the Harte Gold with a focus to ramp up underground operations and gold production. 2020 should be the year Harte produce positive cash flow and hit their goal of 61,000 ounces of gold.

Harte Gold continues to prosper with only 10% of their land package so far explored. With close to 1.7 million ounces (Indicated and Inferred) of gold at good grades and further exploration upside, current gold production ramping up, and cash flow just starting to come in; things are looking pretty good at Harte Gold, and may soon get even better.

Harte Gold Corp. is headquartered in Toronto, Canada; and has a market cap of C$ 163 million. Analyst’s consensus price target is C$ 0.75, representing 183% upside.




Update on Harte Gold’s Sugar Zone Mine production and new high grade gold discovery

“We do a lot of exploration at Harte Gold around the Sugar Zone mine. We have been extending the deposit from an initial small resource of about 100,000 ounces, were now getting close I would say to 2 million ounces and that’s been done along a five-kilometer strike length. So, this latest discovery is south of the Sugar Zone. In an area we call the upper zone of the actual sugar zone deposit, and it’s an area that hadn’t been previously drilled. This extends the ore body 200 meters further south which again is going to have the potential to add a significant amount of new ounces to our resource.” States Stephen G. Roman, Chairman, President and CEO of Harte Gold Corp. (TSX: HRT), in an interview with InvestorIntel’s Tracy Weslosky.

Stephen continues to discuss Harte Gold’s recent financing, explaining how they were able to significantly reduce interest costs, along with discussion on Harte Gold’s Q1 results and vision moving forward.

To access the complete interview, click here

Disclaimer: Harte Gold Corp. is an advertorial member of InvestorIntel Corp.




Harte Gold CEO on Ontario’s newest high-grade gold mine in the last 10 plus years

“We actually have now shipped three shipments out of our Sugar Zone mine site, so the company is now a producer. We had a grand opening on the 24th of October that was attended by the Premier of the Province, Doug Ford and the Mines Minister Greg Rickford. We had about 300 people on site. It was a very excellent day, let us put it that way, to open this new facility. It is Ontario’s newest high-grade gold mine probably in the last 10 plus years.” States Stephen Roman, Chairman, President and CEO of Harte Gold Corp. (TSX: HRT), in an interview with InvestorIntel Corp. CEO Tracy Weslosky.

Tracy Weslosky: Now you just announced your gold pour, two weeks ago, three weeks ago? 

Stephen Roman: Yes. We actually have now shipped three shipments out of our Sugar Zone mine site, so the company is now a producer. We had a grand opening on the 24th of October that was attended by the Premier of the Province, Doug Ford and the Mines Minister Greg Rickford. We had about 300 people on site. It was a very excellent day, let us put it that way, to open this new facility. It is Ontario’s newest high-grade gold mine probably in the last 10 plus years.

Tracy Weslosky: This is a significant accomplishment. For those of you out there with all of your cannabis dough, can you tell them why they should look at Harte Gold? 

Stephen Roman: I think the cannabis group needs to take some profits and put it into the next rising sector, which will be gold and uranium and other commodities. They have been depressed for a while and now I think they are starting to move. We as a new producer, a new high-grade producer here in the Province of Ontario have a lot of upside. The last company that was in our area that was taken over by a significantly larger company had a similar sized operation to us they went out for almost a billion dollars Canadian. Our market cap is $250 million right now. If we start to move up into that level it will be a significant rise for anybody getting in at this point. 

Tracy Weslosky: Earlier this year Stephen you also announced tripling your resource. Is that correct?

Stephen Roman: That is correct. That was the last NI 43-101 we put out. That was for drilling done in 2017. We went from about a half a million ounces to 1.5 million ounces so a very large increase. What we are doing now, of course, we kept drilling and we have been drilling through 2018. We will have another resource update in the first quarter. We expect another increase in our resource. 

Tracy Weslosky: For all of you InvestorIntel members following the Australia gold buzz and you are looking for a gold story here in Canada, can I have you back up and try and give us an overview of the Sugar Zone Project and just introduce us to it please Stephen.

Stephen Roman: Okay. The Sugar Zone was discovered about the time of the Hemlo deposit in the early eighties. Really it languished there. It was viewed as a small insignificant deposit. When we took over managing the company in 2009 there was about 100,000 to 150,000 ounces. Subsequently did a drill program and built that up to a half a million ounces. The following drill program built that up to a million and a half ounces. It is a project that has got a lot of legs. It is open on strike down dip and it just requires the work and the drilling to prove up a larger resource…to access the complete interview, click here

Disclaimer: Harte Gold Corp. is an advertorial member of InvestorIntel Corp.




A big year for Harte Gold in the Sugar Zone

There’s been a lot of news recently about gold, particularly in Western Australia where the world’s alleged largest gold nugget has been found. But it’s just not Australia getting invited to the gold party.

Harte Gold Corp. (TSX: HRT) is Ontario’s newest gold producer with its 100% owned Sugar Zone Mine located in White River Ontario. Harte Gold acquires and explores for mineral resource properties in Canada with its primary focus on its 100% owned Sugar Zone property 24 km north of White River, Ontario. The Zone consists of 549 unpatented mining claims and 4 mining leases. The Company also holds interests in the Stoughton-Abitibi property located in Kirkland Lake, Ontario. 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.

The Company is having a very busy month of October. On October 3, 2018 they announced that the mill has been energized and has started processing ore from its surface stockpile, and ore sill development has resumed underground.

Stephen G. Roman, President and CEO commented: “This is a significant accomplishment and successful conclusion to an accelerated timeline that saw construction started 14 months ago and completed with no lost time accidents. The Company is very excited to announce to shareholders they can now look forward to the first gold pour within the next two weeks.”

Only 12 days later on October 15, 2018 that actual pour was announced.

Stephen G. Roman also commented: “With this achievement we have advanced from permitting the project to gold production in under four weeks, a significant accomplishment. Plant start up continues to run smoothly with no material issues reported.”

Sugar Zone crushing plant

All this has been achieved since September 20, 2018 when it was announced all necessary operating permits for production at the Sugar Zone Mine had been received from the Government of Ontario. Mining operations are currently expected to run for 12 years and will support further resource expansion drilling in the immediate vicinity of the mine and the ramp up of property-wide exploration programs.

Exploration on the Sugar Zone property includes 83,850 hectares encompassing a significant green-stone belt and 35 km strike length yet to be explored. Underground development continues advancing on average 8.2 m per day, exceeding budgeted development. Five levels have been opened at the Sugar Zone south ramp, representing approximately six months of ore, which is now ready for long-hole mining.

A Preliminary Economic Assessment (May 3, 2018) has envisaged a total upfront capital cost at C$58 million ($US45 million). With production from 2019 onward of 80,700 oz/year at an all in sustaining cost of $708/oz over a 12 year mine life. This would see 904,000 oz of total recovered gold production over the life of the mine.

A commercial production report is expected by Q4 2018 to be followed up by a resource update in the first quarter of 2019.

Harte Gold has proven they can get things moving, as they have already gone from permit to pour within weeks. The Sugar Zone seems like a sweet investment if you are looking for a gold project in a high grade low cost producing mine.