Harte Gold Provides Corporate Update and Filing of Quarterly Financial Statements and MD&A

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Harte Gold Provides Corporate Update and Filing of Quarterly Financial Statements and MD&A

TORONTO, ONTARIO--(Marketwired - May 8, 2017) - HARTE GOLD CORP. ("Harte Gold" or the "Company") (TSX:HRT)(OTC:HRTFF)(FRANKFURT:H4O) - Harte Gold is pleased to provide shareholders with an update on progress at the Company's wholly-owned Sugar Zone Property. The Company has embarked on several significant activities related to exploration, near-term development and community engagement, summarized as follows:


  • Initiated aggressive $15 million (75,000 metre) drill program with 6 rigs active.
    • Sugar Zone: Infill drilling confirms continuity and grade; step-out drilling extends mineralization down-dip.
    • Middle Zone: Step-out drilling expands zone to 400 metres on strike and 700 metres down dip; deeper drilling suggests potential to converge with Sugar Zone at depth.
    • Wolf Zone: Initial testing below historical shallow drilling commenced early Q2 2017.
  • Property-wide airborne geophysical program underway.
  • Land position expanded to encompass the majority of the Dayohessarah Greenstone Belt.
  • Updated resource estimation to be undertaken as part of NI 43-101 Technical Report, currently anticipated for Q1 2018.
  • Sugar Zone Deposit Bulk Sample completed, providing valuable insights relating to geotechnical conditions, mining dilution, grade reconciliation, recovery, preferred mining methods and costing.
  • Phase 1 Production permits received; Commercial Production permits anticipated in Q3 2017, following submission of amended closure plan.
  • Development work progressing, including award of EPCM Mill Construction contract ($2.3 million) to Halyard Inc. and Underground Development contract ($12 million) to Technica Group Inc.
  • Ongoing build out of management team continues: key hires include Mine General Manager, Chief Mine Geologist and Chief Exploration Geologist.
  • Harte Gold received the "Developer of the Year" Award from the Northwestern Ontario Prospectors Association, in recognition of the exploration success and advancement of the Sugar Zone.
  • Harte Gold's cash and working capital position as of March 31, 2017 was $24.9 million and $15.2 million respectively.

"2017 is shaping up to be a truly transformative year for the Company," commented Stephen G. Roman, President and CEO of Harte Gold. "We expect to drill more metres this year than the property has seen in its entire history and early results have already demonstrated extensions of mineralization at depth at the Sugar Zone and on-strike and depth at the Middle Zone. We are also pressing forward rapidly with development in the expectation of transforming to a producing company by mid-2018."


The Company has committed to an aggressive $15 million program for 2017, encompassing 75,000 metres across three existing principal mineralized zones as discussed below. A detailed discussion of drilling results have been reported by the Company in news releases, dated February 22, 2017, March 16, 2017 and April 26, 2017, and are available on the Company's web site. A summary of the results is set out below.

Cross Section - Sugar Zone, Middle Zone and Wolf Zone: http://media3.marketwire.com/docs/Harte4036a.jpg

Sugar Zone Deposit

Drilling at the Sugar Zone Deposit planned for 2017, is currently allocated roughly as follows:

  • Two thirds infill drilling (25-50 metre spacing) of the upper 400 metres of the existing resource, with the objective of upgrading this area of planned early production from the Inferred Resource Category to the Indicated Resource Category;
  • One third targeting extensions to the existing resource, both at depth below 400 metres and on-strike.

During the quarter, infill drilling was generally successful in confirming continuity and grade within the currently defined resource, while also returning several outstanding intercepts. Step-out drilling also encountered mineralization down dip from the existing resource, suggesting a potential convergence between the Sugar Zone and Middle Zone deposits at depth. A summary of key drill results at Sugar Zone is provided in the following table.*

Selected Drill Results - Sugar Zone
Hole Width Grade
SZ-17-138 3.0 m 65.4 g/t
SZ-17-143 3.2 m 66.8 g/t
SZ-17-133 1.75 m 41.7 g/t
SZ-17-134 1.80 m 33.6 g/t
(*) Core intersection lengths are approximately 80% true width, assay results are uncut, fire assay with metallic screen on samples > 10 g/t).

Middle Zone

The Middle zone is located 500 metres north of the Sugar Zone Deposit and situated 300 metres below surface. 

During Q1 2017, drilling was principally on 100 meter step outs, and was successful in expanding the dimensions of the zone to 400 metres on strike and 700 metres down dip, while also defining an upper vertical extent at around 150 metres from surface and a northern extent where the zone is cut-off by a post-mineral gabbro intrusion. The zone currently remains open to the south and at depth.

Wolf Zone

The Wolf Zone is located 500 metres north of the Middle Zone, where historical shallow drilling had defined mineralization to a depth of 150 metres, confirming that the mineralized system continues to trend to the north of the gabbro intrusion that cuts-off the Middle Zone. Recent interpretation by Company geologists suggests similar characteristics with the Middle Zone, where the mineralized system improves materially below 150 metres at depth.

Following the end of Q1 2017, a rig was mobilized to begin testing the potential at depth, and results will be released once sufficient drilling has been completed to accurately assess the continuity of mineralization.

The following table summarizes key drill holes at both the Middle and Wolf Zones.*

Selected Drill Results - Middle and Wolf Zones
Hole Width Grade
WZ-17-138 3.80 m 17.6 g/t
WZ-17-143 1.93 m 38.6 g/t
WZ-17-133 3.45 m 35.8 g/t
 (*) Core intersection lengths are approximately 80% true width, assay results are uncut, fire assay with metallic screen on samples > 10 g/t).

Regional Exploration

A detailed high resolution Airborne Magnetic Survey (7,870 line km) has been completed and an HTEM Survey (2,881 line km) is expected to be started shortly, covering both the original Sugar Zone Property and recently acquired claims (62,067 hectares in total). These surveys will better define important structural geological controls and inform ground follow-ups (geochemical and field mapping) and target definition for drilling during the latter part of the 2017 field season. A budget for follow-up exploration activities will be developed following interpretation of the survey data.

Increase in Land Position

In light of the ongoing exploration success on the Sugar Zone Property, the Company staked approximately an additional 20,000 hectares, increasing the total land package to over 80,000 hectares, a portion of which are contiguous to the Sugar Zone property and the balance is connected by similar geological structure. The Company has now secured a significant portion of the Dayohessarah Greenstone Belt and extensions thereof. The additional staking is based on the compilation of historical geophysics and geological survey data. The new ground features limited previous exploration work and hosts significant new discovery potential.

Harte Gold Total Land Package: http://media3.marketwire.com/docs/Harte4036b.jpg 


Bulk Sample

The Bulk Sample program initiated in October 2015 has now been completed with the last of the material shipped off site for processing in March 2017. Under the program, Bulk Sample material was shipped to the neighboring Hemlo Mill, owned by Barrick Gold Inc., under a toll milling agreement. On completion of the Bulk Sample program, the Company had shipped 67,425 dry tonnes of material at an average grade of 8.28 grams per tonne for gross proceeds of approximately $27.7 million. Proceeds have been re-invested in the Sugar Zone Property to continue surface and underground development in preparation for commercial production.

Harte Gold began portal and underground ramp development in October 2015 and approximately 2,500 metres of underground development was completed as part of the Bulk Sample program. Mining operations were successful as the Company gained valuable insight into geotechnical conditions, outperformed mining dilution assumptions and confirmed modelled grades, mineralized widths and continuity. The Company was also able to establish long-hole stoping as the preferred mining method and related costs.


Harte Gold received its first production permit on January 12, 2017. The Phase I Production permit allows the Company to mine an additional 30,000 tonnes. Ramp and level development associated with Phase I Production is well advanced. This permit was granted as an interim step and facilitates continued production until full commercial permitting is received.

The Company will soon be submitting an amended closure plan for full commercial production to include the currently defined Sugar Zone Deposit, and additional resources that may be developed on strike and at depth, as well as milling on site. The Company currently anticipates receipt of Commercial Production permits in Q3 2017.


The Company expects to provide significant updates over the next 12 to 18 months, including:

  • Results from Sugar Zone Deposit in-fill and down dip drill program and Middle and Wolf Zone step-out drill programs (ongoing);
  • Initial results from follow up field work on the balance of the Sugar Zone Property (expected H2 2017);
  • Commercial Production permits (expected Q3 2017);
  • Mobilization of surface construction activities for development of the Sugar Zone project, followed by initial commercial production (expected Q2 2018); and
  • Release of Updated Technical Report on Sugar Zone project (expected Q1 2018)


The unaudited financial results and associated Management's Discussion and Analysis for the three months ended March 31, 2017 are now available at www.sedar.com and the Company's website www.hartegold.com

The following is a summary of the Company's results of operations for the three months ended March 31, 2017 and financial position as at March 31, 2017.

    3 Months Ended 3 Months Ended  
Results of Operations   March 31, 2017 March 31, 2016  
Net Income (Loss) $ 3,928,089 $ (294,542 )
Income / (Loss) per weighted average share   0.009   (0.001 )
Note: Positive net income in 2017 reflects the inclusion in income of the flow-through premium of $4,680,385
Financial Position   March 31,
December 31,
Cash and cash equivalents $ 24,852,508 $ 27,232,409
Receivables and prepaids   5,219,499   2,802,946
  Current assets $ 30,072,007 $ 30,035,355
Restricted cash   1,537,588   1,537,588
Property and equipment   557,528   102,940
Exploration and evaluation expenditures   47,883,257   44,170,665
  Total assets $ 80,050,380 $ 75,846,548
Accounts payable and accrued liabilities $ 12,522,324 $ 10,384,552
Flow-through share premium,   -   4,680,385
Current portion of long-term debt   2,319,437   -
  Current liabilities   14,841,761   15,064,937
Long-term debt   130,000   2,203,254
Environmental rehabilitation provision   1,370,807   1,370,807
Deferred tax liability   625,819   625,819
  Total liabilities   16,968,387   19,264,817
Shareholders' equity   63,081,993   56,581,731
  Total liabilities & shareholders' equity $ 80,050,380 $ 75,846,548

About Harte Gold Corp.

Harte Gold Corp. is focused on the exploration and development of its 100% owned Sugar Zone property where it has permitted a 70,000 tonne Advanced Exploration Bulk Sample for the Sugar Zone Deposit. The Sugar Zone property is located 80 kilometers east of the Hemlo Gold Camp. The Preliminary Economic Assessment dated July 12, 2012, contains an Indicated Resource of 980,900 tonnes, grading 10.13 g/t for 319,280 ounces of contained gold (uncapped) and an Inferred Resource of 580,500 tonnes, grading 8.36 g/t Au for 155,960 ounces of contained gold (uncapped). The mineral resource was prepared in compliance with NI 43-101 guidelines. George A. Flach P. Geo, Vice President Exploration, is the Qualified Person for Harte Gold and has prepared, supervised the preparation, or approved the scientific and technical disclosure in this news release. Harte Gold also holds the Stoughton-Abitibi property located on the Destor-Porcupine Fault Zone adjacent and on strike of the Holloway Gold Mine.

QA/QC Statement

The company has implemented a quality assurance and control ("QA/QC") program to ensure sampling and analysis of mine and exploration work is conducted in accordance with industry standards. Drill core is sawn in half with one half of the core shipped to Actlabs Laboratories located in Thunder Bay, ON, while the other half is retained at the company's core facilities in White River for future verification. Certified reference standards and blanks are inserted into the sample stream on a regular interval basis and monitored as part of the QA/QC program. Gold analysis is performed by fire assay using atomic absorption, gravimetric or pulp metallic finish.

Common Shares Outstanding: 453,281,074

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Stephen G. Roman
President and CEO

David Ellis
Investor Relations Consultant

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