Corporate Presentation March 2019 - Hartegold › wp-content › uploads › 2017 › ... · PDAC...

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1 www.hartegold.com TSX: HRT FRANKFURT: H4O OTC: HRTFF Corporate Presentation March 2019

Transcript of Corporate Presentation March 2019 - Hartegold › wp-content › uploads › 2017 › ... · PDAC...

Page 1: Corporate Presentation March 2019 - Hartegold › wp-content › uploads › 2017 › ... · PDAC “Bill Dennis Award” winner, Prospector of the Year, 2016 Roger J. Emdin Vice

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www.hartegold.com

TSX: HRT

FRANKFURT: H4O

OTC: HRTFF

Corporate Presentation

March 2019

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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.

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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)

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Located on a Major Greenstone Belt in an Established Mining Region

PROJECT LOCATION

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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

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Asset de-risked – Share price has yet to reflect it

MILESTONES ACHIEVED

2018 – A big year for Harte Gold

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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

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Objective Was to Start Small, Use Near Term Production to Continue Development

PEA MINE PLAN

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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+

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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

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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

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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

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NEAR MINE EXPLORATION

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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

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PROPERTY-WIDE EXPLORATION

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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

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PROPERTY WIDE EXPLORATION

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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

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KEY TAKEAWAYS

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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

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APPENDIX

ONTARIO’S NEWEST HIGH

GRADE GOLD PRODUCER

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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

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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

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$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

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PHASED MINE PLAN INCREASING TO 1,400 TPDProvides Early Cash Flow and Longer Term Growth

H2 2018 H2 2019 H1 2021

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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

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