Post on 07-Jul-2020
1
www.hartegold.com
TSX: HRT
FRANKFURT: H4O
OTC: HRTFF
Corporate Presentation
March 2019
2
FORWARD LOOKING STATEMENTS
All figures in CAD, unless otherwise noted
All tonnages in metric, unless otherwise noted
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, development and exploration
assets; Harte Gold’s ability to raise additional funds necessary; the future price of gold; the estimation of mineral reserves 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 interim MD&As.
3
COMPANY SNAPSHOT
* As at Q4 2018, source: Bloomberg
Corporate Structure Institutional Support
Headquartered
Toronto, Ontario, Canada
Symbol
TSX: HRT
FRANKFURT: H4O
OTCBB: HRTFF
Market Cap
C$230 million (C$0.37/share)
Shares Outstanding
596 million (Basic)
658 million (Fully Diluted)
Analyst Following
Macquarie Buy C$0.70
Cantor Fitzgerald Buy C$1.20
Haywood Capital Mkts Buy C$0.80
Major Shareholders*
Appian Natural Res. 19.9%
Orion Mine Finance 7.2%
Old Mutual 0.9%
Management 4.5%
Debt Financing for up to
US$70 Million
Sprott Inc. US$50 M
Appian Natural Res. US$20 M
Head Office(Toronto)
4
Located on a Major Greenstone Belt in an Established Mining Region
PROJECT LOCATION
5
Newest Producer, Significant Near Term Upside
INVESTMENT HIGHLIGHTS
• Commercial production declared in January 2019
• Growing to 70,000 – 80,000 oz production at 800 tpd
The Newest, High Grade
Canadian Gold Producer
• Resource more than tripled from 2015 to 2019
• 1.1m oz Indicated – 55% increase from 2018
History of Delivering
Consistent Resource Growth
• 83,850 hectare land package, 30 Km strike potential
• Over 90% of the property is unexplored
District Scale
Exploration Potential
1. Source: analyst estimates
Highest PeerPeer Average
1.2x
0.7x
Consensus P/NAV1
Harte Gold
0.3x
6
Asset de-risked – Share price has yet to reflect it
MILESTONES ACHIEVED
2018 – A big year for Harte Gold
6
2018 – A big year for Harte Gold
Resource Update:
Tripled Resource
PEA + US$70 million
comprehensive debt
financing announced
Production Permits
Received
Sugar, Middle and
Wolf zones
converging at
depth
Declared
Commercial Production
IBA signed with
Pic Mobert FN
First
Gold Pour
Footwall Zone
discovery at the
Middle Zone
Q1 Q2 Q3 Q4
7
Objective Was to Start Small, Use Near Term Production to Continue Development
PEA MINE PLAN
7
Sugar Zone
South Ramp
Sugar Zone
North Ramp
Middle Zone
North
Areas Mined Lower grade Sugar Zone South Ramp
Throughput 510 tpd
Production 33,233 oz
Grade 5.83 g/t
Cash Cost US$953/oz
AISC US$1,630/oz (underground development)
Areas Mined Higher grade areas of Sugar Zone
North and South
Throughput 800 tpd (supported by existing surface
infrastructure)
Production 70,000 - 80,000 oz
Target Grade 7.0 - 8.0 g/t
Cash Cost US$445/oz
AISC US$658/oz (lower sustaining CAPEX)
2019
2020+
8
Upgrade of Indicated Resources Will Positively Improve Mine Plan Economics
SIGNIFICANT RESOURCE UPDATE
2018 – 2019 Mineral Resource Estimate Comparison (3 g/t Cut-Off)
Indicated Inferred
M tonnesGrade
(g/t)
Contained
Au (oz)M tonnes
Grade
(g/t)
Contained
Au (oz)
4.2 8.12 1,108,000 2.9 5.88 558,000
2.6 8.52 714,200 3.6 6.59 760,8002018
February 2019
55% increase Indicated
Resources
Grade continuity
confirmed, lower grade
Inferred upgraded to higher
grade Indicated
Infill drilling continues to
successfully upgrade
resources and increase
grade!
Mineralization expanded –
now includes Wolf, extended
1,300 metres down dip
Convergence of zones at
depth continues
9
Feasibility Study and Updated Life Of Mine Plan (Target Q1 2019)
CONTINUALLY IMPROVING MINE PLANNING
There are a number of ways to improve mine planning based on work completed in 2018
9
Stope Blast At 140 Level (December 2018)
Sill Width (3m)
Blasted Stope (1.8 m)
– CLEAN BREAK
New Resource
Model
Higher
Throughput
Optimize
Grade
Mine
Management
Control
Dilution
• 90,000 meters of drilling not
in the mine plan
• Inferred resources converted
to higher grade Indicated
Achieve 800 tpd
ahead of 2020 target
Open up higher grade
areas earlier in the mine plan
Optimize stope
sequencing, development
underground to better
manage grade
Optimize sill
drives widths
10
NEAR MINE EXPLORATION
10
Objectives for 2019
Convergence at depth –
continue to prove our
understanding of the
deposit
OBJECTIVES:
Focused drilling –
target highest value
areas!
Downhole IP – proven to
be a valuable tool for
generating targets
1
2
3
11
PROPERTY-WIDE EXPLORATION
11
Objectives for 2019
Second pass exploration
of defined target areas
OBJECTIVES:
Extend mineralization on
strike and down dip of
existing deposits
Discover mineralized
trends adjacent to Sugar
and Middle
1
2
3
12
PROPERTY WIDE EXPLORATION
12
Accomplishing Our Objectives
Target Areas Rationale Budgeted Work
• Hambleton Zone • Extension of known mineralization to the north
• 826 ppb soil samples significantly higher than
samples from Sugar and Middle
• Other anomalous elements (Cu, Pb, Zn, Ni, Co)
detected in soil samples
• VLF surveying completed
• Diamond drilling
• K7 South • Southern extension of mineralization to Sugar and
Middle Zone, similar setting
• Prospecting samples returned anomalous gold and
base metals
• Several outcrops of altered feldspar porphyry and
altered mafic volcanics
• VLF surveying
• Diamond drilling
• Flat Lake Area • Northeast extension of the greenstone trend which
hosts the Sugar and Middle Zones
• VLF surveys are following up conductive as well as
highly resistive airborne anomalies
• VLF surveying
• Diamond drilling
13
KEY TAKEAWAYS
13
Property wide exploration underway –
only 10% of the land package has
been explored!
Commercial production
achieved
Operations are stabilized, simple
mine design, excellent continuity
Production growth: 70,000 - 80,000 oz
annully, generates cash flow for
continued development
Resource update completed,
Feasibility Study underway to
declare reserves
Feasibility study and optimized life of
mine plan targeted for Q1 2019
APPENDIX
ONTARIO’S NEWEST HIGH
GRADE GOLD PRODUCER
15
EXPERIENCED MANAGEMENT TEAM
Stephen G. Roman Chairman, President & CEO; BA
35+ years
Discovered Gold Eagle, sold
to Goldcorp ($1.5B)
Verena Minerals / Belo Sun –
Volta Grande, Black Fox,
Gabriel Resources Limited
PDAC “Bill Dennis Award”
winner, Prospector of the
Year, 2016
Roger J. EmdinVice President, Operations;
P.Eng.
30+ years
Senior management and
operating experience
Experience with large
operating mines including
Glencore’s Nickel Rim
South Mine
Chairman CEMI – Center
for Excellence in Mining
Innovation
George FlachIndependent Consultant;
B.Sc. P.Geo.
30+ years
Discovered / developed
gold projects in West Africa
20Moz Gold Fields Tarkwa,
4Moz Bogosu and 2Moz
Benso mines in Ghana
2Moz Goulagou mine in
Burkino Faso
Rein LehariChief Financial Officer;
CPA, CA
30+ years
Previously Partner,
PricewaterhouseCoopers
Business valuation, M&A,
corporate finance
16
EXPERIENCED MANAGEMENT TEAM
Shawn HowarthVice President, Corporate
Development; MBA, B.Eng.
15+ years
Experience in corporate
finance, corporate strategy
and valuations
Formerly an investment
banker with Standard
Chartered Bank
Tim CampbellExecutive Vice President &
Secretary; BA Hons.
25 years
Government & Permitting
First Nations & Community
consultation
Corporate finance
Regulatory compliance
Bob KusinsResource Geologist;
P.Geo.
35+ years
Underground mine geologist,
geological database
management, modelling and
resource estimation
Formerly Chief underground
geologist at Barrick’s Hemlo
Mine
Gordon ReedGeneral Manager, Sugar Zone
Mine; P.Eng.
35+ years
Experience in a wide range
of base & precious metal
operations; focused on
environmental, technical
planning, financial &
regulatory compliance
Formerly General Manager
of the Seabee Mine in
Saskatchewan
17
$150
$300
$450
$600
$750
US$1,250/oz GoldPrice
US$1,350/oz GoldPrice
Improve Head Grade Upgrade Resources Mine PlanOptimization
Exploration Upside
Pre
-Tax N
PV
5%
($ M
illio
ns)
Opportunities to Further Enhance Value
Sugar Zone
NPV Potential
$344
$425
?
head grade:
7.0 – 8.0 g/t
mineable
resource
by 534,000
ounces
mining
dilution, lower
mining costs
PEA Pre-Tax NPV5%
$500
Several Opportunities For Mine Optimization
ENHANCING PROJECT VALUE “STAIRWAY”
$560
$610 $610
18
PHASED MINE PLAN INCREASING TO 1,400 TPDProvides Early Cash Flow and Longer Term Growth
H2 2018 H2 2019 H1 2021
19
20
40
60
80
100
120
140
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Pro
duction (
koz A
u)
Phase 1 & 2 (800 tpd) Phase 3 (1,400 tpd)
0.0
2.5
5.0
7.5
10.0
150
300
450
600
2018 2020 2022 2024 2026 2028
Gra
de (
g/t A
u)
Thro
ughput
(ktp
a)
Phase 1 & 2 (800 tpd) Phase 3 (1,400 tpd) Diluted Head Grade
Scalable Mine Plan Designed to Match Underground Development
PEA PRODUCTION PROFILE
Throughput and Grade
Production Forecast
Exploration Potential
Resource Growth