Corporate Presentation January 2019 1 FORWARD LOOKING STATEMENTS - - PowerPoint PPT Presentation

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Corporate Presentation January 2019 1 FORWARD LOOKING STATEMENTS - - PowerPoint PPT Presentation

TSX: HRT FRANKFURT: H4O OTC: HRTFF Corporate Presentation January 2019 1 FORWARD LOOKING STATEMENTS This presentation contains forward-looking information under Canadian securities legislation. Forward-looking information includes, but is not


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TSX: HRT FRANKFURT: H4O OTC: HRTFF

Corporate Presentation January 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

  • n 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

* As at Q4 2018, source: Bloomberg

Corporate Structure Institutional Support Headquartered Toronto, Ontario, Canada Symbol TSX: HRT FRANKFURT: H4O OTCBB: HRTFF Market Cap C$245 million (C$0.41/share) Shares Outstanding 596 million (Basic) 658 million (Fully Diluted) Analyst Following Macquarie Buy C$0.70 Cantor Fitzgerald Buy C$1.20 Haywood Capital Mkts Buy C$0.80 Major Shareholders* Appian Natural Res. 19.9% Orion Mine Finance 7.2% Old Mutual 0.9% Debt Financing for up to US$70 Million Sprott Inc. US$50 M Appian Natural Res. US$20 M

Head Office

(Toronto)

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Located on a Major Greenstone Belt in an Established Mining Region

PROJECT LOCATION

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Newest Producer, Significant Near Term Upside

INVESTMENT HIGHLIGHTS

  • Commercial production declared in January 2019
  • 33 Koz targeted at 575 tpd, low cost expansion

potential

The Newest, High Grade Canadian Gold Producer

  • Tripled resource from 2015 to 2018
  • 90,000 m drilled since then, resource update coming

History of Delivering Consistent Resource Growth

  • 83,850 hectare land package, 30 Km strike potential
  • Over 90% of the property

is unexplored

District Scale Exploration Potential

  • 1. Source: analyst estimates

Highest Peer Peer Average

1.2x 0.7x

Consensus P/NAV1

Harte Gold

0.4x

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6 0.0 4.0 8.0 12.0 16.0

Measured + Indicated Resource Grade (g/t Au)

Sugar Zone Project

8.5 g/t Indicated Resource, 94th percentile

Development Projects Worldwide

Sugar Zone is One of the Highest Grade Deposits Globally

HIGH GRADE RESOURCE

Note: Data set includes worldwide FS, PFS and PEA stage projects Source: SNL, public company information

Sugar Zone Resource Estimate

Category Tonnes Grade (g/t) Contained Au (oz) Indicated 2,607,000 8.5 714,200 Inferred 3,590,000 6.6 760,800

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Asset de-risked – Share price has yet to reflect it

MILESTONES ACHIEVED

2018 – A big year for Harte Gold

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2018 – A big year for Harte Gold

Resource Update: Tripled Resource PEA + US$70 million comprehensive debt financing announced Production Permits Received Sugar, Middle and Wolf zones converging at depth Declared Commercial Production IBA signed with Pic Mobert FN First Gold Pour Footwall Zone discovery at the Middle Zone

Q1 Q2 Q3 Q4

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Mineral Resource Update (Target Early 2019)

CONTINUALLY IMPROVING RESOURCE

Drilling in 2018 has expanded mineralization and improved grade

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Objective Was to Start Small, Use Near Term Production to Continue Development

PEA MINE PLAN

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Sugar Zone South Ramp Sugar Zone North Ramp

Middle Zone North

Areas Mined Lower grade Sugar Zone South Ramp Throughput 510 tpd Production 33,233 oz Grade 5.83 g/t Cash Cost US$953/oz AISC US$1,630/oz (underground development) Areas Mined Higher grade areas of Sugar Zone North and South Throughput 800 tpd (supported by existing surface infrastructure) Production 75,000 oz+ Target Grade 7.0-8.0 g/t Cash Cost US$445/oz AISC US$658/oz (lower sustaining CAPEX)

2019 2020+

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Feasibility Study and Updated Life Of Mine Plan (Target Q1 2019)

CONTINUALLY IMPROVING MINE PLANNING

There are a number of ways to improve mine planning based on work completed in 2018

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Stope Blast At 140 Level (December 2018)

Sill Width (3m)

Blasted Stope (1.8 m) – CLEAN BREAK

New Resource Model Higher Throughput Optimize Grade Mine Management Control Dilution

  • 90,000 meters of drilling not

in the mine plan

  • Inferred resources converted

to higher grade Indicated Achieve 800 tpd ahead of 2020 target Open up higher grade areas earlier in the mine plan Optimize stope sequencing, development underground to better manage grade Optimize sill drives widths

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PROPERTY-WIDE EXPLORATION

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Objectives for 2019

Follow-up drilling

 Second pass exploration of defined target areas

`

Sugar Zone Middle Zone Wolf Zone

Continuation of mineralization to the North Follow-up on anomalous gold sampled to the South EM Targets Identified 30 Km strike length largely unexplored

OBJECTIVES:

 Extend mineralization

  • n strike and down dip
  • f existing deposits

 Discover mineralized trends adjacent to Sugar and Middle

1 2 3

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PROPERTY WIDE EXPLORATION

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Accomplishing Our Objectives

Target Areas Rationale Budgeted Work

Extension

  • n Strike and

Down Dip

  • Areas north of Wolf

and Fox

  • Areas on strike and

below Sugar and Middle Zones (1,200 m depth)

  • Extensions to known mineralized areas

– “low hanging fruit”

  • Anomalous mineralization returned

north of Wolf and Fox in 2018 soil sampling

  • Deep exploration at Sugar / Middle to

prove mineralized continuity at depth

  • Diamond drilling (20,000 m

targeted)

  • Down hole IP surveying –

four hole program

  • Down hole IP works –

discovery of Sugar Zone Deep and Sugar-Middle Zone convergence

New Mineralized Trends

  • EM targets identified
  • n the east side of

the property

  • K7 Zone to the south
  • Target areas are situated on known

mineralized trends

  • 2018 soil sampling returned anomalous

mineralization

  • Diamond drilling (5,000 m

targeted)

  • Ground geophysics

Revisit Other Property Wide Targets

  • Eagle Zone
  • Highway Zone
  • Leverage preliminary drill program
  • Follow-up targets identified
  • Budget and ongoing work to

be finalized

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KEY TAKEAWAYS

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Property wide exploration underway –

  • nly 10% of the land package has

been explored! Commercial production achieved Operations are stabilized, simple mine design, excellent continuity 2019 PEA target for 2019: 33,000 oz production, generates cash flow for continued development Resource update underway to improve grade and add ounces Feasibility study and optimized life of mine plan targeted for Q1 2019

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APPENDIX

ONTARIO’S NEWEST HIGH GRADE GOLD PRODUCER

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EXPERIENCED 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

Roger J. Emdin

Vice President, Operations; P.Eng. 30+ years

  • Senior management and
  • perating experience
  • Experience with large
  • perating mines including

Glencore’s Nickel Rim South Mine

  • Chairman CEMI – Center

for Excellence in Mining Innovation

George Flach

Independent 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

Rein Lehari

Chief Financial Officer; CPA, CA 30+ years

  • Previously Partner,

PricewaterhouseCoopers

  • Business valuation, M&A,

corporate finance

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EXPERIENCED MANAGEMENT TEAM

Shawn Howarth

Vice 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 Campbell

Vice President & Secretary; BA Hons. 20+ years

  • Government & Permitting
  • First Nations & Community

consultation

  • Corporate finance
  • Regulatory compliance

Bob Kusins

Resource Geologist; P.Geo. 35+ years

  • Underground mine geologist,

geological database management, modelling and resource estimation

  • Formerly Chief underground

geologist at Barrick’s Hemlo Mine

Gordon K. Reed

General Manager, Sugar Zone Mine; P.Eng. 35+ years

  • Experience in high grade

underground mining environments

  • Formerly General

Manager of the Seabee Mine in Saskatchewan

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17 $150 $300 $450 $600 $750 US$1,250/oz Gold Price US$1,350/oz Gold Price Improve Head Grade Upgrade Resources Mine Plan Optimization Exploration Upside

Pre-Tax NPV5% ($ Millions)

Opportunities to Further Enhance Value

Sugar Zone NPV Potential

$344 $425

?

head grade: 7.0 – 8.0 g/t mineable resource by 534,000

  • unces

mining dilution, lower mining costs

PEA Pre-Tax NPV5%

$500

Several Opportunities For Mine Optimization

ENHANCING PROJECT VALUE “STAIRWAY”

$560 $610 $610

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PHASED MINE PLAN INCREASING TO 1,400 TPD

Provides Early Cash Flow and Longer Term Growth

H2 2018 H2 2019 H1 2021

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19 20 40 60 80 100 120 140 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Production (koz Au)

Phase 1 & 2 (800 tpd) Phase 3 (1,400 tpd) 0.0 2.5 5.0 7.5 10.0 150 300 450 600 2018 2020 2022 2024 2026 2028

Grade (g/t Au) Throughput (ktpa)

Phase 1 & 2 (800 tpd) Phase 3 (1,400 tpd) Diluted Head Grade

Scalable Mine Plan Designed to Match Underground Development

PEA PRODUCTION PROFILE

Throughput and Grade Production Forecast

Exploration Potential Resource Growth

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PEA SUMMARY

Input Unit Value

Gold Price US$/oz $1,250 Exchange Rate CAD:USD 0.80 Average Annual Throughput (2019+) tpa 403,000 Average Daily Throughput (2019+) Tpd 1,100 Total Processed Tonnes 4,539,800 Diluted Head Grade g/t 6.5 Gold Recovery % 95.4% Mine Life Years 12 Total Ounces Recovered Ounces 904,000 Average Annual Production (Phase I & II) Ounces 54,500 Average Annual Production (Phase III) Ounces 106,900 Average Annual Production (LOM) Ounces 80,700 Peak Annual Production (2024) Ounces 121,400 Mining Costs C$/tonne $90.83 Processing Costs C$/tonne $28.71 Site G&A C$/tonne $8.46 Total Costs C$/tonne $128.01 LOM Average Cost* US$/oz $507 LOM AISC* US$/oz $708

Macro and Physical Parameters Cost Parameters Cash Cost Summary

* Converted from CAD to USD at 0.8000

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G O L D C O R P