Cor por ate Pr e se ntation,
Se pte mbe r , 2018
G O L D C O R P
www.har te gold.c om T SX: HRT | F RANKF URT : H4O | OT C: HRT F F
Cor por ate Pr e se ntation, Se pte mbe r , 2018 F ORWARD L - - PowerPoint PPT Presentation
www.har te gold.c om T SX: HRT | F RANKF URT : H4O | OT C: HRT F F G O L D C O R P Cor por ate Pr e se ntation, Se pte mbe r , 2018 F ORWARD L OOK I NG ST AT E ME NT S This presentation contains forward-looking
www.har te gold.c om T SX: HRT | F RANKF URT : H4O | OT C: HRT F F
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All figur e s in CAD, unle ss o the r wise no te d F igur e s in USD we r e c o nve r te d at CAD/ USD 0.8000 All to nnage s in me tr ic , unle ss o the r wise no te d
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
"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"
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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CORPORAT E ST RUCT URE INST IT UT IONAL SUPPORT Analyst F
Major Shar e holde r s1: He adquar te r e d:
T
Mar ke t Cap:
C$260 millio n (C$0.45 Aug 30th)
19.9%
Shar e s Outstanding:
581 millio n (Ba sic ) 643 millio n (F ully Dilute d)
Symbol:
T SX: HRT F RANK F URT : H4O OT CBB: HRT F F
He a d Offic e (T
2.1% 0.9% 7.2%
De bt F inanc ing F
Up T
US$20 million US$50 million
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83,850 HE CT ARE S (>200,000 ACRE S) CL AIME D ON A MAJOR GRE E NST ONE BE L T IN AN E ST ABL ISHE D MINING RE GION
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Re so urc e upda te : triple d re so urc e PE A: $425 M pre -ta x NPV5%, 60% pre -ta x I RR1
Co mpre he nsive de b t fina nc ing pa c ka g e , up to US$70 M
I BA sig ne d with Pic Mo b e rt F irst Na tio n (PMF N)
1) 5% disc o unt ra te a t g o ld pric e US$1,350/ o z a nd CAD:USD 0.8000
F ina l pe rmitting : Se pte mb e r 2018
Co mme rc ia l Pro duc tio n: Q4 2018
T HE NE XT 12 MONT HS ARE CAT AL YST RICH F OR HART E GOL D
Re so urc e Upda te : Q1 2019
Upda te d mine pla n, fina l te c hnic a l re po rt: Q1 2019
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6 (68% ) (38% ) (38% ) (15% ) (15% ) (12% ) (11% ) (2% ) 3% 7% 10% 48% 62% 102% TMAC Resources Equinox Gold Victoria Premier Gold Marathon Gold Osisko Mining Lundin Gold Argonaut Gold Midas Gold Pretium Pure Gold Harte Gold Wesdome Gold Atlantic Gold
T HE MARKE T SHOUL D RE SPOND POSIT IVE L Y T O HART E GOL D DE L IVE R ABL E S OVE R T HE NE XT SIX MONT HS
Suc c e ssful star
t- up, “painle ss” tr ansition to pr
status
Gr
mine r e sour c e s thr
suc c e ssful e xplor ation
De monstr
ate the distr ic t sc ale pote ntial of the ove r all land pac kage POSIT IVE MARKE T T HE ME S
SHARE PRICE PE RF ORMANCE OF PE E RS SINCE JANUARY 2017
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HART E GOL D IS JOINING A VE RY SMAL L L IST OF GOL D PRODUCE RS IN ONT ARIO, AN ARE A KNOWN F OR PROL IF IC GOL D MINE PRODUCT ION
immins We st Mine /
e e k Mine /
aylor Mine /
Mine /
Ove r the last 8 ye ar s, o nly a small fr ac tio n o f go ld pr
io we r e suc c e ssfully advanc e d to c o mme r c ial pr
he Sugar Zo ne Mine will be the ne xt pr
e gio n.
Zone Mine 2010 2012 2014 2016 2018
Change s to Ontar io Mining Ac t in 2013
So urc e : OMA, pub lic c o mpa ny info rma tio n
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75th Pe r c e ntile 25th Pe r c e ntile
SUGAR ZONE IS ONE OF T HE HIGHGE ST GRADE , HIGHE ST RE T URN DE POSIT S IN DE VE L OPME NT
No te : Da ta se t inc lude s wo rldwide F S, PF S a nd PE A sta g e pro je c ts So urc e : SNL , pub lic c o mpa ny info rma tio n
0.1 1 10 100 10000.0 4.0 8.0 12.0 16.0
Me asur e d + Indic ate d Re sour c e Gr ade (g/ t Au) Pr
Sugar Zone Pr
A, May 2018):
8.5 g /t I ndic ate d Re so urc e , 94th pe rc e ntile 42% Pro je c t I RR, 75th pe rc e ntile
SUGAR ZONE RE SOURCE E ST IMAT E
Ca te g ory T
Gra de (g / t) Conta ine d Au (oz) Indic a te d 2,607,000 8.5 714,200 Infe rre d 3,590,000 6.6 760,800
Compar ison of Pr
De ve lopme nt Wor ldwide
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HART E GOL D PROVIDE S SHARE HOL DE R S L E ADING E XPOSURE T O RE SOURCE AND PRODUCT ION GROWT H
* Se le c te d sing le a sse t pro duc e rs a nd < 200 Ko z pro duc e rs ** Ave ra g e re so urc e inc re a se divide d b y e xplo ra tio n b udg e t fo r tha t pe rio d So urc e : Ana lyst e stima te s, pub lic c o mpa ny info rma tio n
Re sour c e Gr
Pr
– 2021E )
(100% ) (50% ) 0% 50% 100% 150% 200% 250% 300% 350% (50% ) 0% 50% 100% 150% 200% 250%
Supe r
io r r e so ur c e and pr
RE SOURCE AND PRODUCT ION GROWT H OF SE L E CT E D PRODUCE RS*
`
Gold pr
inc r e asing to >100,000 oz/ yr by 2021 (PE A)
Re sour c e s tr iple d afte r 2017 dr illing (138,000 m at Sugar / Middle Zone s)
130,000 m dr illing c ur r e ntly unde r way at Sugar , Middle , Wolf an F
Re sour c e update tar ge te d for e ar ly 2019
Only ~10%
the
all land pac kage has be e n e xplor e d!
Bub b le size illustrate s o unc e s de line ate d fo r e xplo ratio n do llars spe nt**
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10 400 800 1,200 1,600 Ca sh Ope ra ting Cost
HART E GOL D IS PROT E CT E D T O GOL D PRICE VOL AT IL IT Y
L
ation, simple me tallur gy
T abular or e body, ste e ply dipping – ame nable to longhole stoping
Widths and mode lle d gr ade s c onfir me d thr
and Phase I Pr
Ne ar sur fac e – r amp ac c e ss, minimal distanc e to mill
Ope r ating c osts in CAD dollar s
Se ve r al oppor tunitie s unde r r e vie w to lowe r c osts fur the r !
ST ABL E E QUIT Y MARGINS AT CURRE NT GOL D PRICE S
Gold price: C$1,600/oz Operating Margin: C$705/oz
Operating Cost: C$634/oz Sustaining Cost: + C$261/oz
AISC: C$895/oz
Figures in CAD, based on PEA Estimates
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H2 2018 H1 2021 H2 2019 T
PROVIDE S E ARL Y CASH F L OW AND L ONGE R T E RM GROWT H Phase 1: 540 tpd (2018 - 2019) Phase 2: 800 tpd (2020) Phase 3: 1,400 tpd (2021+)
isk r amp- up to c omme r c ial pr
xisting sur fac e and unde r gr
astr uc tur e is suffic ie nt to suppor t inc r e ase d thr
hr
e ase d by adding se c ond ball mill and le ac h c ir c uit
xpansion to the Middle Zone allows for multiple stoping ar e as
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SCAL ABL E MINE PL AN DE SIGNE D T O MAT CH UNDE RGROUND DE VE L OPME NT
20 40 60 80 100 120 140 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Pro d uc tio n (ko z Au) Pha se 1 & 2 (800 tpd ) Pha se 3 (1,400 tpd )
T hr
ade Pr
e c ast
0.0 2.5 5.0 7.5 10.0 150 300 450 600 2018 2020 2022 2024 2026 2028 Gra d e (g / t Au) T hro ug hput (ktpa ) Pha se 1 & 2 (800 tpd ) Pha se 3 (1,400 tpd ) Dilute d He a d Gra de
E xplo r atio n Po te ntial Re so ur c e Gr
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A inc or por ate d dr illing up to De c . 2017
e ase dr ill de nsity to impr
all gr ade
illing to date has r e tur ne d ve r y positive r e sults
r e ntly not fac tor e d into mine plan
por ate r e sults fr
A c ontr ac tor mining c osts we r e c onse r vative
SIGNF ICANT DRIL L ING COMPL E T E D IN 2018 T O SUPPORT T HE F OL L OWING:
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ARE AS T ARGE T E D F OR NE AR MINE DRIL L ING “L OW HANGING F RUIT ”
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POSIT IVE DRIL L ING T O IMPROVE RE SOURCE GRADE AND ADD OUNCE S T O T HE MINE PL AN Wolf Zone Sugar Zone De posit Au gpt
100 3 10
10.47gpt Au/ 1.40m 1.59gpt Au/ 3.30m 3.83gpt Au/ 10.66m 6.15gpt Au/ 6.17m 0 m 250 m 1,000 m 500 m 750 m 12.89gpt Au/ 2.28m 18.65gpt Au/ 2.23m
Middle Zone F
23.64 gpt Au/ 2.28m (UZ) 19.47 gpt Au/ 1.59m (UZ) 17.94 gpt Au/ 1.40m (UZ) 10.98 gpt Au/ 1.43m (F Z) 10.75 gpt Au/ 1.58m (F Z)
OPE N OPE N
49.96gpt Au/ 1.42m 14.79gpt Au/ 3.03m F W 6.42 gpt Au/ 4.23 m F W 5.41 gpt Au/ 7.66 m 11.27 gpt Au/ 5.81m 16.46 gpt Au/ 6.55m 21.16 gpt Au/ 4.78m 12.14 gpt Au/ 3.10m 17.49 gpt Au/ 4.70m 9.28gpt Au/ 1.59m 8.87gpt Au/ 1.87m
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SE VE RAL OPPORT UNT IIE S NOT CAPT URE D IN T HE PE A
$150 $300 $450 $600 $750
US$1,250/ oz Gold Pr ic e US$1,350/ oz Gold Pr ic e Impr
Gr ade Upgr ade Re sour c e s Mine Plan Optimization E xplor ation Upside
Pre -T ax NPV5% ($ Millions) Opportunitie s T
urthe r E nhanc e Value
Sug a r Zone NPV Pote ntia l
$344 $425
?
?
he ad gr
ade : 7.0 – 8.0 g/ t
mine able
r e sour c e by 534,000 ounc e s
mining
dilution, lowe r mining c osts
PE A Pre -T ax NPV5%
? ? ?
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Inc re a se d ove ra ll la nd position to 83,850 he c ta re s 35 Km strike le ng th to be e xplore d Ne a r- mine ta rg e ts Sug a r, Middle , Wolf a nd F
Se ve ra l re g iona l e xplora tion ta rg e ts ide ntifie d
Sugar Zone Middle Zone Wolf Zone EM Targets Eagle Zone Fox Zone Lynx Zone Highway Zone Fisher Zone
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Constr uc tion Upda te
uc tion of the c r ushing spr e a d a nd mill c omple x is c omple te
id c onne c tion unde r wa y (e nd of Aug ust)
g r
g e ts e xc e e de d, c r itic a l infr a str uc tur e is c omple te Pe r mitting
ull ope r a tiona l pe r mits ta r g e te d for Se pte mbe r
ir st Na tion Ba nd
mit c ur r e ntly unde r a 30-da y public c omme nta r y pe r iod
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c ia l pr
stood or e body. 100,000 tonne s mine d to-da te
st qua r tile c a sh c ost pr
tunitie s to g r
Impr
a de with c ontinue d dr illing
130,000 me tr e s of dr illing for 2018 tha t is not c ur r e ntly fa c tor e d into Re sour c e s
Add ounc e s c ur r e ntly not fa c tor e d into the mine pla n
Optimize mine pla n, r e duc e dilution, lowe r mining c osts
e sour c e a nd mine pla n ta r g e te d for Q1 2019
ty wide e xplor a tion unde r wa y – only 10% of the la nd pa c ka g e ha s be e n e xplor e d!
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Ste phe n G. Roman
Cha irma n, Pre side nt & CE O; BA
35+ ye ars
a g le , so ld to Go ldc o rp ($1.5B)
– Vo lta Gra nde , Bla c k F
Ga b rie l Re so urc e s L imite d
winne r, Pro spe c to r o f the Ye a r, 2016
Roge r
mdin
Vic e Pre side nt, Ope ra tio ns; P.E ng .
30+ ye ars
xpe rie nc e with la rg e
Gle nc o re ’ s Nic ke l Rim So uth Mine
MI – Ce nte r fo r E xc e lle nc e in Mining Inno va tio n
Ge or ge F lac h
Inde pe nde nt Co nsulta nt; B.Sc . P.Ge o .
30+ ye ars
g o ld pro je c ts in We st Afric a
ie lds T a rkwa , 4Mo z Bo g o su a nd 2Mo z Be nso mine s in Gha na
Burkino F a so
Re in L e har i
Chie f F ina nc ia l Offic e r; CPA, CA
30+ ye ars
Pric e wa te rho use Co o pe rs
c o rpo ra te fina nc e
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Ste ve Ball
Ge ne ra l Ma na g e r, Sug a r Zo ne Mine ; P.E ng .
30+ ye ars
e c hnic a l, o pe ra tio ns, huma n re so urc e s, c o rpo ra te a ffa irs a nd pro je c t ma na g e me nt
a t Va le ’ s na rro w ve in Co le ma n Mine a nd Vo ise y’ s Ba y
Shawn Howar th
Vic e Pre side nt, Co rpo ra te De ve lo pme nt; MBA, B.E ng .
15+ ye ars
xpe rie nc e in c o rpo ra te fina nc e , c o rpo ra te stra te g y a nd va lua tio ns
b a nke r with Sta nda rd Cha rte re d Ba nk
T im Campbe ll
Vic e Pre side nt & Se c re ta ry; BA Ho ns.
20+ ye ars
irst Na tio ns & Co mmunity c o nsulta tio n
Bob Kusins
Re so urc e Ge o lo g ist; P.Ge o .
35+ ye ars
g e o lo g ist, g e o lo g ic a l da ta b a se ma na g e me nt, mo de lling a nd re so urc e e stima tio n
unde rg ro und g e o lo g ist a t Ba rric k’ s He mlo Mine
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e shippe d to Bar r ic k’s He mlo Mill for pr
gr
c omple te d to suppor t c omme r c ial mining
Zone Mine is c omme r c ial pr
e ady:
− Ge ology: Co ntinuity, wid ths a nd mo d e lle d
g ra d e s ha ve b e e n c o nfirme d
− Mining: L
− Pr
− Costs: Mining c o sts c o nfirme d
Mine De ve lopme nt
> 2,500 m
Ore Shippe d
67,454 DMT
Gra de
8.5 g / t
Re c onc ilia tion with Ba rric k
+ 5%
Dire c t Mining c ost
C$85 / t
BUL K SAMPL E HIGHL IGHT S (BARRICK’S HE ML O MIL L )
Vie wing stope a long str ike . Cle a n br e a k, minima l dilution
Ope ne d L
Ste e ply dipping or e , 65- 70°
8 Me te r Width L
Zone Or e F ac e
100,000 T ONNE S OF MAT E RIAL MINE D T O- DAT E , DE
O COMME RCIAL PRODUCT ION
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CL OSE D DE BT F INANCING PACKAGE WIT H SPROT T RE SOURCE L E NDING AND APPIAN CAPIT AL Spr
ac ility
e d c r e dit fac ility Appian Subor dinate d L
dinate d to Spr
Be ne fits
F
le xible pr inc ipal and inte r e st sc he dule suppor ts r amp- up of ope r ations
Suffic ie nt liquidity to pr
e se e n downtur n in c ommodity pr ic e s
No e quity c ommitme nt No he dging, no c ashflow swe e ps and no de bt se r
vic e r e se r ve ac c ount
No off- take or r
No c ommitme nt to dr
aw full US$70 million
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Input Unit Value
Go ld Pric e US$/o z $1,250 E xc ha ng e Ra te CAD:USD 0.80 Ave ra g e Annua l T hro ug hput (2019+) tpa 403,000 Ave ra g e Da ily T hro ug hput (2019+) T pd 1,100 T
T
4,539,800 Dilute d He a d Gra d e g /t 6.5 Go ld Re c o ve ry % 95.4% Mine L ife Ye ars 12 T
Ounc e s 904,000 Ave ra g e Annua l Pro d uc tio n (Pha se I & II ) Ounc e s 54,500 Ave ra g e Annua l Pro d uc tio n (Pha se II I ) Ounc e s 106,900 Ave ra g e Annua l Pro d uc tio n (L OM) Ounc e s 80,700 Pe a k Annua l Pro d uc tio n (2024) Ounc e s 121,400 Mining Co sts C$/to nne $90.83 Pro c e ssing Co sts C$/to nne $28.71 Site G&A C$/to nne $8.46 T
C$/to nne $128.01 L OM Ave ra g e Co st* US$/o z $507 L OM AISC* US$/o z $708
Macro and Physical Parameters Cost Parameters Cash Cost Summary
* Co nve rte d fro m CAD to USD a t 0.8000
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Unit Gold Pr ic e Se nsitivitie s US$1,150/ oz PE A Pr ic ing US$1,350/ oz
Mac r
ame te r s Gold Pr ic e
US$/o z
$1,150 $1,250 $1,350 E xc hange Rate
CAD:USD
0.80 0.80 0.80 Pr e - T ax NPV and IRR NPV @ 5%
M C$
$263 $344 $425 IRR
%
40% 50% 60% Post- T ax NPV and IRR NPV @ 5%
M C$
$189 $244 $299 IRR
%
34% 42% 50%
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HART E GOL D’S AL L IN SUST AINING CASH COST S ARE IN T HE T OP QUART IL E OF PRODUCE RS
So urc e : SNLMa rke t Inte llig e nc e , 2017 g o ld pro duc tio n ra nke d a ll in susta ining c o sts * Pro je c te d po sitio ning b a se d o n L OM a ll in susta ining c o sts re la tive to c urre nt pro duc e rs
Cumulative Pr
25% 50% 75%
100%
$500
AISC (US$/ oz)
$2,500 $3,000 $1,000 $1,500 $2,000 0%
Sugar Zone , Harte Gold*
AISC of US$708 / oz ove r mine life
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