TORONTO , Feb. 8, 2021 /CNW/ - HARTE GOLD CORP. ("Harte Gold" or the "Company") (TSX: HRT) (OTC: HRTFF) (Frankfurt: H4O) is pleased to provide the following operations and corporate update.
Performance Improvements Continue:
- Mine capital development averaged 13.1 metres per day for January, inline with targeted development rates for 2021; up from 11.4 metres per day in Q4 2020.
- Ore tonnes processed totaled 21,686 tonnes for January, an average of 700 tonnes per day ("tpd"), representing an increase of 36% over Q4 2020.
- Average grade of 5.7 g/t Au was inline with planned grade for January. Average grade for 2021 is expected to be 7.1 g/t Au, reflecting higher grade areas to be mined.
- Gold production for January was 3,785 ounces, representing continued improvement over the preceding quarters' monthly averages.
- Redpath's mobile equipment has been fully secured and is now managed by Harte Gold.
- Completed the transition to owner-operator at the Sugar Zone mine.
| | Operational Highlights – January 2021 |
| | The following results are preliminary and unreconciled. A more detailed operational update will be provided at the end of the quarter. |
| | | Unit | Q3 2020 | Q4 2020 | January 2021 | FY 2021 |
| | Mine Development | m/day | 9.2 | 11.4 | 13.1 | 13.5 |
| | Ore Tonnes Processed* | tpd | 473 | 503 | 700 | 800 |
| | Head Grade | g/t Au | 5.7 | 7.7 | 5.7 | 7.1 |
| | Recovery | % | 93.4% | 94.9% | 93.9% | 94.0% |
| | Avg. Monthly Gold Ounces Produced | Avg. oz Au / month | 3,100 | 3,611 | 3,785 | 5,200 |
| | * Represents a mined daily rate for Q3 2020 as process plant was restarted midway through Q3 2020. |
Update on Discussions with BNP Paribas ("BNP"):
Since the Company's January 20 th news release, discussions with BNP have further advanced to a point where Harte Gold is optimistic that a mutually agreeable arrangement will be reached with BNP that will include an amendment to the amortization schedule of principal repayments due in 2021 and 2022.
Discussions are focused on specific changes to the amortization schedule of principal repayments as well as the details of other customary financial and operational covenants, which management is confident will be resolved.
The anticipated agreement with BNP would relieve the Company from a significant portion of its debt service obligations during this critical growth period and enhance its liquidity and financial flexibility as it implements the 1,200 tpd expansion.
Exploration Update:
In parallel to Harte Gold's ramp up and stabilization at 800 tpd during Q1 2021, and subsequent ramp up to 1,200 tpd, exploration activities have been advanced on a number of fronts.
The Company is pleased to announce the recent appointment of David Schonfeldt as Vice President, Exploration. David is a geologist with over 20 years of experience in both underground geology as well as regional and mine exploration work. Most recently, David was with Kirkland Lake Gold as its Exploration Manager. Before that, he spent five years at St. Andrews Goldfields and, prior to that, over 10 years with Barrick Gold . With David's solid understanding of Canadian Archean Greenstone gold deposits, having spent a good part of his career in the Abitibi region of Northern Ontario , he will be a significant asset to Harte Gold.
The Company's exploration focus over the coming months is to: (i) complete an exhaustive review and proper systematic database compilation of our substantial historical geological data (including drilling, geophysics, magnetics, structural mapping, prospecting and surface sampling); (ii) complete various stage-gated regional exploration drill phases including TT8; (iii) complete lithological mapping, regional geology model compilation and geochemistry to help clearly define improved drilling targets for 2021 (including ongoing line cutting, allowing for an approximate 40-line km OreVision 3D IP survey and magnetic survey over key prospective areas called Big Bear ("BB"), BB extension, and Southern Showing; and (iv) continue diamond drilling to follow up on TT8 gold showings, as well as other gold showings and chargeability/resistivity anomalies along the same mineralized trend. These drilling results along with the exploration strategy and workplan for 2021 – 2022 will be highlighted in the coming months.
Feasibility Study Expansion and Project Execution:
The Company is also pleased to announce the appointment of Philippe Parent , Director of Projects. Philippe will play a critical role in further enhancing the capital rigor and discipline needed in stabilizing operations at 800 tpd and in moving forward with the expansion to 1,200 tpd.
Philippe has over 35 years of experience in the execution of major projects encompassing engineering, development, project controls, systems, procurement, civils and infrastructural construction and commissioning, as both an owner engineer-constructor and as a contractor. A licensed civil engineer with an added electrical technology degree, Philippe has worked locally and internationally including with Alba Group Asia, Worley Parsons , SNC-Lavalin and Mridien Construction.
Frazer Bourchier, President and CEO of Harte Gold, commented:
"I remain encouraged by the ongoing operational improvements we have made at site and I am confident the initiatives we have taken will help us to more fully realize the potential of the Sugar Zone mine and our significant surrounding land package. I am also pleased to welcome both David and Philippe to the Harte Gold team in their respective roles. Both David and Philippe will undoubtedly complement the strong leadership team already in place at Harte Gold and their collective experiences are a valuable addition for all stakeholders of the Company."
Technical Information
Scientific and technical information contained in this news release was reviewed and approved by Chris McCann , P. Eng., who is a "qualified person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects .
About Harte Gold Corp.
Harte Gold holds a 100% interest in the Sugar Zone mine located in White River, Canada . The Sugar Zone Mine entered commercial production in 2019. Production guidance is 60,000 to 65,000 oz Au for 2021. The Company has further potential through exploration at the Sugar Zone Property, which encompasses 79,335 hectares covering a significant greenstone belt. Harte Gold trades on the TSX under the symbol "HRT", on the OTC under the symbol "HRTFF" and on the Frankfurt Exchange under the symbol "H4O".
Cautionary note regarding forward-looking information:
This news release includes "forward-looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Specific forward-looking statements in this press release include, but are not limited to, 2021 forecasted average head grade of 7.1 g/t Au, mine development of 13.5 m /day, ore tonnes processed of 800 tpd, recovery of 94.0% and average monthly gold ounces produced of 5,200 Au; Harte Gold being optimistic that a mutually agreeable arrangement will be reached with BNP that will include an amendment of the amortization schedule of principal repayments due in 2021 and 2022; the anticipated agreement with BNP relieving the Company from a significant portion of its debt service obligations and enhancing its liquidity and financial flexibility as it implements the 1,200 tpd expansion; the Company's exploration focus over the coming months; drilling results, along with the exploration strategy and workplan for 2021 – 2022, being highlighted in the coming months; Philippe Parent playing a critical role in further enhancing the capital rigor and discipline needed in stabilizing at 800 tpd and in moving forward with the expansion to 1,200 tpd; gold production of 60,000 to 65,000 oz Au for 2021; and the Company having further potential through exploration at the Sugar Zone Property. Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management's experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such risks and uncertainties include, but are not limited to, there being no events of default or breaches of key financing agreements, including agreements with BNP Paribas and Appian; the Company being able to attract and retain qualified candidates to join the Company's management team and board of directors, risks associated with the mining industry, including operational risks in exploration, development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of the Company to obtain all permits, agreements, consents or authorizations required for its operations and activities; and health, safety and environmental risks, the risk of commodity price and foreign exchange rate fluctuations, the ability of Harte Gold to fund the capital and operating expenses necessary to achieve the business objectives of Harte Gold, the uncertainty associated with commercial negotiations and negotiating with contractors and other parties and risks associated with international business activities, as well as other risks and uncertainties which are more fully described in the Company's Annual Information Form dated March 25, 2020 , and in other filings of the Company with securities and regulatory authorities which are available on SEDAR at www.sedar.com .
Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of the Company should not place undue reliance on these forward-looking statements. Readers are cautioned that the foregoing list of risks, uncertainties and other factors are not exhaustive. The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or in any other documents filed with Canadian securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. The forward-looking statements are expressly qualified by this cautionary statement. The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
SOURCE Harte Gold Corp.