Harte Gold Reports First Quarter 2018 Results

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TORONTO, May 16, 2018 (GLOBE NEWSWIRE) -- (“” or the “”) (TSX:HRT) (OTC:HRTFF) (Frankfurt:H4O) is pleased to announce its results for the three months ended March 31, 2018.

Stephen G. Roman, President and CEO of Harte Gold commented, “Harte Gold has had a very productive start to 2018.  The Company tripled its mineral resource estimate, arranged a debt financing solution that fully funds the Sugar Zone Project to production, delivered a Preliminary Economic Assessment with significantly improved project economics and signed an Impact Benefits Agreement with Pic Mobert First Nation.  The Company’s focus now is on achieving commercial production, targeted for Q3 2018 and continuing aggressive infill and expansion drill programs, expected to improve grade and add resources.”

P&E was retained to complete a PEA for the Sugar Zone and Middle Zone deposits (see press release dated May 3, 2019). The PEA envisions a 540 tpd mine plan increasing to 1,400 tpd in year 2021.  The Mineral Resource incorporated into the PEA is based on the NI 43-101 resource, effective February 15, 2018.  Approximately 534,000 ounces of the Mineral Resource Estimate were excluded from the PEA mine plan due to drill density.

The Company has recognized several opportunities to further enhance value at the Sugar Zone Project by increasing drill density to improve head grade, adding resources to the mine plan by conversion of existing Mineral Resources from the Inferred to Indicated category, growing the property wide resource base, as well as optimizing mine scheduling to reduce mining cost.

The PEA is preliminary in nature and includes Inferred Mineral Resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that PEA results will be realized.  Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

On May 3, 2018, the Company announced a US$70 million financing package which fully funds capital cost, start-up and working capital requirements. The financing is comprised of a US$50 million secured debt facility from Sprott Private Resource Lending (Collector) L.P. (“Sprott”) and US$20 million secured subordinated facility from Appian Natural Resources Fund (“Appian”). Closing of both facilities is in May.  For further details on the financing, please see press release dated May 3, 2018.

Benefits of the financing package include:

On May 2, 2018, the Company announced it signed an IBA with Pic Mobert First Nation (“PMFN”).  The IBA applies to mines that may be developed on the 83,850 hectare Sugar Zone property and provides a framework within which Harte Gold and PMFN will continue to work together during the production phase of the Sugar Zone Mine.  Please see press release dated May 2, 2018 for key IBA terms.

In Q1 2018, 15,970 meters were drilled at the Sugar Zone, 4,998 meters were drilled at the Wolf Zone and 6,637 meters were drilled at other regional targets.  Drilling in Q1 2018 is currently not factored into the NI 43-101 resource estimate and will be additive to any future updates.  The following image illustrates key near mine drill results returned to-date.  Please see press release dated March 19, 2018 for further detail.

A photo accompanying this announcement is available at

For the quarter ended March 31, 2018, the Company’s cash and cash equivalent position decreased to $5,470,198 from $24,789,164 at December 31, 2017. Cash was largely used to fund the processing plant construction and exploration costs.

On May 3, the Company announced debt financing of US$70 million which is expected to close at the end of May. With this financing, the Company expects to have sufficient funds to complete budgeted 2018 expenditures, including:

In the event of an increase in planned levels of exploration or other expenditures, the Company may need to seek additional financing, either by way of equity or debt. While the Company has been successful in raising funds to date, there can be no assurance that such funds will be available to the Company on terms that it finds acceptable.

Independent Qualified Person, Eugene Puritch, P.Eng., FEC, CET of P&E Mining Consultants Inc. has reviewed and approved the technical contents of this news release.

For further information, please contact:Stephen G. Roman                                                                                          President and CEO                                                                                          Tel: 416-368-0999                                                                                           Email:      

Shawn HowarthVice President, Corporate DevelopmentTel: 416-368-0999E-mail:

 

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Globe Newswire: 22:58 GMT Wednesday 16th May 2018

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