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1 www.hartegold.com TSX: HRT FRANKFURT: H4O OTC: HRTFF Corporate Presentation September 2019
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Page 1: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

1

www.hartegold.com

TSX: HRTFRANKFURT: H4OOTC: HRTFF

Corporate PresentationSeptember 2019

Page 2: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

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.

Page 3: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

3

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

Page 4: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

4

Located on a Major Greenstone Belt in an Established Mining RegionPROJECT LOCATION

Page 5: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

5

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

Page 6: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

6

HIGH GRADE DEPOSIT

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Fost

ervi

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acas

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ise

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ruce

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neng

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ong

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asi

Cer

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egro

Bul

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ulu

Kyz

ylK

upol

Wes

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gar Z

one

Mel

iadi

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ake

May

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riefo

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onso

lidat

edH

ope

Bay

Gw

alia

Mus

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hite

East

Kun

dana

LaR

onde

Tshe

pong

Eleo

nore

Gra

nny

Smith

Tana

mi

Sout

h D

eep

Klo

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lidat

edZu

oan

Doo

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shan

ti M

iner

acao

Porg

era

Loul

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duga

Kitt

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Alb

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Mea

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Xinc

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Bar

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ana

Sugar Zone Deposit Reserve Grade: 7.1 g/t*

* Mines > 1 million oz, ranked by reserve grade; source: SNL, public company information

Ranked 14th

Page 7: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

7

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

Page 8: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

8

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

Page 9: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

9

UNDERGROUND DEVELOPMENTCritical to achieving mined ore tonnage

Keys to achieving 800 tpd from underground production

Ventilation constraints now resolved

Equipment availability

Operational team additions

Page 10: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

10

STRATEGIC FOCUS

Operational deliverables Financial deliverables

Underground mine production

Grade control

Deliver on guidance

Cost rationalization

Balance sheet maintenance

Page 11: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

11

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

Page 12: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

12

IN THE BEGINNING: JUST A SMALL OUTCROP!

Sugar Zone (2009)

Page 13: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

13

TODAY: THE NEWEST GOLD PRODUCER IN CANADA

Sugar Zone Mine and Process Plant (2018)

Page 14: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

14

INSIDE THE PROCESS PLANTMill operations stabilized

Flotation recovery circuit800 tpd ball mill

Page 15: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

15

FIRST GOLD POUR OCTOBER 15TH 2018

Gravity recovered gold stream Gold furnace

Page 16: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

16

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!

Page 17: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

17

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

Page 18: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

18

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

Page 19: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

19

Feasibility mine plan makes up a small portion of overall resource mineralizationSIGNIFICANT HISTORICAL RESOURCE GROWTH

Sugar Zone outcrop

Page 20: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

20

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

20

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

1

2

3

Sugar Zone South – extends near mine mineralization

New! Sugar Zone South

Page 21: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

21

PROPERTY-WIDE EXPLORATION

21

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

1

2

3

Page 22: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

22

EXPLORATION – AI TARGETS

22

Page 23: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

23

KEY TAKEAWAYS

23

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!

Page 24: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

24

Page 25: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

25

THANK YOU!

25

ONTARIO’S NEWEST HIGH GRADE GOLD PRODUCER

Page 26: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

26

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

Page 27: TSX: HRT...HRT. FRANKFURT: H4O. OTC: HRTFF. Corporate Presentation. September 2019. 2. FORWARD LOOKING STATEMENTS . All figures in CAD, unless otherwise noted. All tonnages in metric,

27

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


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