1
TSX: HRT FRANKFURT: H4O OTC: HRTFF
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
1
TSX: HRT FRANKFURT: H4O OTC: HRTFF
2
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
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.
3
* 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)
4
5
Highest Peer Peer Average
Harte Gold
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
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
7
7
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
8
9
9
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)
10
10
Sill Width (3m)
Blasted Stope (1.8 m) – CLEAN BREAK
in the mine plan
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
11
11
Follow-up drilling
Continuation of mineralization to the North Follow-up on anomalous gold sampled to the South EM Targets Identified 30 Km strike length largely unexplored
12
12
and Fox
below Sugar and Middle Zones (1,200 m depth)
– “low hanging fruit”
north of Wolf and Fox in 2018 soil sampling
prove mineralized continuity at depth
targeted)
four hole program
discovery of Sugar Zone Deep and Sugar-Middle Zone convergence
the property
mineralized trends
mineralization
targeted)
be finalized
13
13
15
Chairman, President & CEO; BA 35+ years
to Goldcorp ($1.5B)
Volta Grande, Black Fox, Gabriel Resources Limited
winner, Prospector of the Year, 2016
Vice President, Operations; P.Eng. 30+ years
Glencore’s Nickel Rim South Mine
for Excellence in Mining Innovation
Independent Consultant; B.Sc. P.Geo. 30+ years
gold projects in West Africa
4Moz Bogosu and 2Moz Benso mines in Ghana
Burkino Faso
Chief Financial Officer; CPA, CA 30+ years
PricewaterhouseCoopers
corporate finance
16
Vice President, Corporate Development; MBA, B.Eng. 15+ years
finance, corporate strategy and valuations
banker with Standard Chartered Bank
Vice President & Secretary; BA Hons. 20+ years
consultation
Resource Geologist; P.Geo. 35+ years
geological database management, modelling and resource estimation
geologist at Barrick’s Hemlo Mine
General Manager, Sugar Zone Mine; P.Eng. 35+ years
underground mining environments
Manager of the Seabee Mine in Saskatchewan
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
mining dilution, lower mining costs
PEA Pre-Tax NPV5%
$500
$560 $610 $610
18
H2 2018 H2 2019 H1 2021
19 20 40 60 80 100 120 140 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Production (koz Au)
Phase 1 & 2 (800 tpd) Phase 3 (1,400 tpd) 0.0 2.5 5.0 7.5 10.0 150 300 450 600 2018 2020 2022 2024 2026 2028
Grade (g/t Au) Throughput (ktpa)
Phase 1 & 2 (800 tpd) Phase 3 (1,400 tpd) Diluted Head Grade
Throughput and Grade Production Forecast
Exploration Potential Resource Growth
20
Input Unit Value
Gold Price US$/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
21