TSX: HRT FRANKFURT: H4O OTC: HRTFF Corporate Presentation January 2019 1
FORWARD LOOKING STATEMENTS This presentation contains forward-looking information under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to completion of any financings; Harte Gold’s development potential and timetable of its operating, d evelopment and exploration assets; Harte Gold’s ability to raise additional funds necessary; the future price of gold; the estimation of mineral reserve s and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental and permitting risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Harte Gold to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Harte Gold and in its public documents filed on SEDAR from time to time. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Harte Gold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Harte Gold does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Harte Gold’s annual and i nterim MD&As. All figures in CAD, unless otherwise noted All tonnages in metric, unless otherwise noted 2
COMPANY SNAPSHOT Corporate Structure Institutional Support Headquartered Analyst Following Toronto, Ontario, Canada Macquarie Buy C$0.70 Cantor Fitzgerald Buy C$1.20 Haywood Capital Mkts Buy C$0.80 Symbol TSX: HRT FRANKFURT: H4O Major Shareholders* OTCBB: HRTFF Appian Natural Res. 19.9% Orion Mine Finance 7.2% Old Mutual 0.9% Market Cap C$245 million (C$0.41/share) Debt Financing for up to US$70 Million Shares Outstanding Sprott Inc. US$50 M 596 million (Basic) Appian Natural Res. US$20 M 658 million (Fully Diluted) Head Office (Toronto) * As at Q4 2018, source: Bloomberg 3
PROJECT LOCATION Located on a Major Greenstone Belt in an Established Mining Region 4
INVESTMENT HIGHLIGHTS Newest Producer, Significant Near Term Upside The Newest, High Grade Canadian Gold Producer • Commercial production declared in January 2019 • 33 Koz targeted at 575 tpd, low cost expansion Consensus P/NAV 1 potential 1.2x History of Delivering 0.7x Consistent Resource Growth • Tripled resource from 2015 to 2018 0.4x • 90,000 m drilled since then, resource update coming District Scale Harte Gold Peer Average Highest Peer Exploration Potential • 83,850 hectare land package, 30 Km strike potential • Over 90% of the property is unexplored 1. Source: analyst estimates 5
HIGH GRADE RESOURCE Sugar Zone is One of the Highest Grade Deposits Globally 16.0 Sugar Zone Resource Estimate Grade Contained Category Tonnes Measured + Indicated Resource Grade (g/t Au) (g/t) Au (oz) 12.0 Indicated 2,607,000 8.5 714,200 Sugar Zone Project Inferred 3,590,000 6.6 760,800 8.5 g/t Indicated Resource, 94th percentile 8.0 4.0 0.0 Development Projects Worldwide Note: Data set includes worldwide FS, PFS and PEA stage projects 6 Source: SNL, public company information
MILESTONES ACHIEVED Asset de-risked – Share price has yet to reflect it Declared Commercial Production First Gold Pour IBA signed with Pic Mobert FN Footwall Zone discovery at the Sugar, Middle and Middle Zone Wolf zones converging at depth Production Permits Received PEA + US$70 million 2018 – A big year for Harte Gold 2018 – A big year for Harte Gold comprehensive debt financing announced Resource Update: Tripled Resource Q1 Q2 Q3 Q4 7 7
CONTINUALLY IMPROVING RESOURCE Mineral Resource Update (Target Early 2019) Drilling in 2018 has expanded mineralization and improved grade 8
PEA MINE PLAN Objective Was to Start Small, Use Near Term Production to Continue Development Areas Mined Lower grade Sugar Zone South Ramp Sugar Zone Sugar Zone South Ramp North Ramp Throughput 510 tpd Production 33,233 oz 2019 Middle Zone Grade 5.83 g/t Cash Cost US$953/oz AISC US$1,630/oz (underground development) 2020+ Areas Mined Higher grade areas of Sugar Zone North and South Throughput 800 tpd (supported by existing surface infrastructure) Production 75,000 oz+ North Target Grade 7.0-8.0 g/t Cash Cost US$445/oz AISC US$658/oz (lower sustaining CAPEX) 9 9
CONTINUALLY IMPROVING MINE PLANNING Feasibility Study and Updated Life Of Mine Plan (Target Q1 2019) There are a number of ways to improve mine planning based on work completed in 2018 Stope Blast At 140 Level (December 2018) New Optimize Resource Grade Model • 90,000 meters of drilling not Open up higher grade in the mine plan areas earlier in the mine plan Sill Width (3m) • Inferred resources converted to higher grade Indicated Mine Control Higher Management Dilution Throughput Optimize sill Optimize stope Achieve 800 tpd drives widths sequencing, development ahead of 2020 target underground to better Blasted Stope (1.8 m) manage grade – CLEAN BREAK 10 10
PROPERTY-WIDE EXPLORATION Objectives for 2019 OBJECTIVES: 1 Extend mineralization Continuation of on strike and down dip mineralization to the North of existing deposits Wolf Zone Middle Zone EM Targets Identified 2 ` Discover mineralized Sugar Zone trends adjacent to Sugar and Middle 30 Km strike length largely unexplored Follow-up on anomalous 3 gold sampled to the South Second pass exploration of defined Follow-up drilling target areas 11 11
PROPERTY WIDE EXPLORATION Accomplishing Our Objectives Target Areas Rationale Budgeted Work • Areas north of Wolf • Extensions to known mineralized areas • Diamond drilling (20,000 m – “low hanging fruit” and Fox targeted) 1 • Areas on strike and • Anomalous mineralization returned • Down hole IP surveying – below Sugar and north of Wolf and Fox in 2018 soil four hole program Extension Middle Zones (1,200 sampling • Down hole IP works – on Strike and m depth) • Deep exploration at Sugar / Middle to discovery of Sugar Zone Down Dip prove mineralized continuity at depth Deep and Sugar-Middle Zone convergence • EM targets identified • Target areas are situated on known • Diamond drilling (5,000 m on the east side of mineralized trends targeted) 2 the property • 2018 soil sampling returned anomalous • Ground geophysics • K7 Zone to the south mineralization New Mineralized Trends • Eagle Zone • Leverage preliminary drill program • Budget and ongoing work to be finalized • Highway Zone • Follow-up targets identified 3 Revisit Other Property Wide Targets 12 12
KEY TAKEAWAYS Commercial production 2019 PEA target for 2019: 33,000 oz achieved production , generates cash flow for continued development Operations are stabilized, simple Feasibility study and optimized life of mine design , excellent continuity mine plan targeted for Q1 2019 Property wide exploration underway – Resource update underway to improve grade and add ounces only 10% of the land package has been explored! 13 13
APPENDIX ONTARIO’S NEWEST HIGH GRADE GOLD PRODUCER
Recommend
More recommend
