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www.hartegold.com
TSX: HRTFRANKFURT: H4OOTC: HRTFF
Corporate PresentationSeptember 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
Corporate Structure Institutional Support
HeadquarteredToronto, Ontario, Canada
SymbolTSX: HRTFRANKFURT: H4OOTCBB: HRTFF
Market CapC$160 million (C$0.26/share)
Current Shares Outstanding654 million (Basic)
Analyst FollowingCantor Fitzgerald BuyHaywood Capital Mkts BuyEchelon Wealth Partners Following
Major ShareholdersAppian Natural Res. 26%Orion Mine Finance 7%Management 6%
Senior Debt Financing: US$72.5 MBNP Paribas Bank
Term Loan US$52.5 MRevolving Facility US$20.0 M
Head Office(Toronto)
Based on 3.0 g/t cut-off, Probable Reserves are included in Indicated Resources
Tonnes(M)
Grade(g/t)
Au(oz)
Probable Reserves 3.9 7.1 890,000
Indicated Resources 4.2 8.12 1,108,000
Inferred Resources 2.9 5.88 558,000
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Located on a Major Greenstone Belt in an Established Mining RegionPROJECT LOCATION
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NEWEST EMERGING PRODUCER
Mill operations stabilized at 700 tpd
Gold production increased 42% Q2 vs. Q1
93% average gold recoveries
Ramp up to 800 tpd is improving
Positive net cash flow expected by end of Q4
2020: significant growth expected!
Successes to-date
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HIGH GRADE DEPOSIT
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Fost
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Isla
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Cer
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Bul
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May
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Mus
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East
Kun
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Eleo
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Gra
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Smith
Tana
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Sout
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Sugar Zone Deposit Reserve Grade: 7.1 g/t*
* Mines > 1 million oz, ranked by reserve grade; source: SNL, public company information
Ranked 14th
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OPERATIONAL SUMMARYSugar Zone Ramp-Up First 6 Months
Q1 2019 Q2 2019 % Increase
Ore Mined 32,044 42,601 33%
Ore Processed 38,278 53,216 39%
Daily Throughput 425 591 39%
Gold Produced 5,476 7,754 42%
Revenue (C$) $7.9 M $11.8 M 50%
Mine EBITDA1 ($2.5) M $2.7 M -
Mine Cash Flow ($8.8) M ($2.4) M -
Operating Cash Cost1 $1,454 $1,070 26% Improvement
AISC1 $2,606 $1,734 33% Improvement
1) Non-IFRS measure, refer to Company’s MD&A for description and reconciliation
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OPERATIONAL STRATEGYRamp up to 800 tpd
Keys to a successful ramp up
Sugar Zone North and South areas are now accessible
Stope availability increased, targeting four stopes by year end
Advance to the Middle Zone continues, target accessibility Q1 2020
Ensure no constraints to underground development
‒ Ventilation constraints now resolved
‒ Equipment availability
‒ Operational team additions
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UNDERGROUND DEVELOPMENTCritical to achieving mined ore tonnage
Keys to achieving 800 tpd from underground production
Ventilation constraints now resolved
Equipment availability
Operational team additions
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STRATEGIC FOCUS
Operational deliverables Financial deliverables
Underground mine production
Grade control
Deliver on guidance
Cost rationalization
Balance sheet maintenance
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Stabilized mine production + higher grade = higher production, lower costs, profitabilityRA
FY 2019 FY 2020
Production
Throughput (tpd) 540 800
Diluted Grade (g/t) 4.0-6.0 7.0+
Mill Recovery 92% 95.5%
Gold Production (oz) 39,200 65,078
Operating Cost (US$/oz)
AISC Cash Cost 1,300 -1,350 913
Feasibility gold price: US$1,250/oz
Feasibility Plan – 2019 vs. 2020
High grade areas in 2020 & 2021
Sugar ZoneNorth
Sugar ZoneSouth Middle Zone
250 m
500 m
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IN THE BEGINNING: JUST A SMALL OUTCROP!
Sugar Zone (2009)
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TODAY: THE NEWEST GOLD PRODUCER IN CANADA
Sugar Zone Mine and Process Plant (2018)
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INSIDE THE PROCESS PLANTMill operations stabilized
Flotation recovery circuit800 tpd ball mill
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FIRST GOLD POUR OCTOBER 15TH 2018
Gravity recovered gold stream Gold furnace
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OPERATING STRATEGY - 2019
Mine performance is ramping up to 800 tpd (target Q4 2019)
Mill operations are stabilized at 700 tpd. Surface stockpiles are being drawn to supplement ore feed from underground
Continue to reduce surface stockpiles through July / August and feed mill 100% from underground by Q4 2019
Focus on safely achieving profitability and resource expansion!
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Mill operations stabilized, mine ramping up to 800 tpdOPERATIONAL PERFORMANCE YEAR-TO-DATE
0
4,500
9,000
13,500
18,000
January February March April May June
Min
ed O
re T
onna
ge
Actual Target
Mined Ore Tonnage – Actual vs. Target Diluted Mined grade – Actual vs. Target
2.00
4.00
6.00
8.00
January February March April May June
RO
M G
rade
(g/t)
Actual Target
Processed Ore Tonnage – Actual vs. Target Overall Mill Recovery – Actual vs. Target
0
4,500
9,000
13,500
18,000
January February March April May June
Pro
cess
ed O
re T
onna
ge
Surface Stockpile Mined Ore Target
0%
30%
60%
90%
January February March April May June
Actual Target
Q1 Q2 Q1 Q2
Q1 Q2 Q1 Q2
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GOLD PRODUCTION IS TRACKING PLAN
0
1,750
3,500
5,250
7,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 2020
Actual Production Target (Feasibility Plan)
2020 Monthly Average: 5,330 oz
0
1,750
3,500
5,250
7,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 2020
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Feasibility mine plan makes up a small portion of overall resource mineralizationSIGNIFICANT HISTORICAL RESOURCE GROWTH
Sugar Zone outcrop
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Wolf ZoneSugar Zone
Current Infrastructure
Planned InfrastructurePreviously Drilled
Current Drilling
Middle Zone
Au gpt100
0
3
10
SoutheastNorthwest
Middle Zone mineralization expansion –
Downhole IP
Sugar/Middle Zone
Convergence
5 Km Strike Length
High grade mineralization extended to surface
Fox Zone
SZ-19-271
SZ-19-269
4.70gpt Au/2.13m7.00gpt Au/1.59m UZ
27.60gpt Au/1.68m
0 m
250 m
1,000 m
500 m
750 m
21.07gpt Au/1.68m UZ
8.62gpt Au/1.90m
NEAR MINE EXPLORATION
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Mineralization continues to grow
Convergence at depth – continue to prove our view of the deposit
Downhole IP –proven to be a valuable tool for generating targets
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2
3
Sugar Zone South – extends near mine mineralization
New! Sugar Zone South
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PROPERTY-WIDE EXPLORATION
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Objectives for 2019
Continue exploration of defined target areas
OBJECTIVES:
Extend mineralization on strike and down dip of existing deposits
Discover mineralized trends adjacent to Sugar and Middle Zones
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2
3
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EXPLORATION – AI TARGETS
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KEY TAKEAWAYS
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Harte Gold is in commercial production… long mine life!
Mill operations are stabilized, simple metallurgy, underground ramp-up to 800tpd continues
Near mine resources continue to expand… Sugar Zone South
Production and cash costs to stabilize in Q4 2019
Feasibility plan: 2019 is a ramp up year, production will continue to grow
Property wide exploration underway –only 10% of the land package has been explored!
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THANK YOU!
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ONTARIO’S NEWEST HIGH GRADE GOLD PRODUCER
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SENIOR 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
Rein LehariChief Financial Officer; CPA, CA
30+ years
Previously Partner, PWC
Business valuation, M&A, corporate finance
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
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
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EXPERIENCED OPERATING TEAM
Gordon K. ReedGeneral Manager, Sugar Zone Mine; P.Eng.
35+ years
Experience in high grade underground mining environments
Formerly General Manager of the Seabee Mine in Saskatchewan
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
Mine and Mill Operations Exploration
Jeffery HansenMill Supervisor
30+ years
Led start-up/commissioning of several processing plants in North America
Formerly Plant Manager at Silvertip Mine, Mill/Surface Manager at Myra Falls Mine
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