Corporate Presentation May 2019 1 FORWARD LOOKING STATEMENTS This - - PowerPoint PPT Presentation

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Corporate Presentation May 2019 1 FORWARD LOOKING STATEMENTS This - - PowerPoint PPT Presentation

www.hartegold.com TSX: HRT FRANKFURT: H4O OTC: HRTFF Corporate Presentation May 2019 1 FORWARD LOOKING STATEMENTS This presentation contains forward-looking information under Canadian securities legislation. Forward-looking information


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www.hartegold.com TSX: HRT FRANKFURT: H4O OTC: HRTFF

Corporate Presentation May 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 Q1 2019, source: Bloomberg

Corporate Structure Institutional Support Headquartered Toronto, Ontario, Canada Symbol TSX: HRT FRANKFURT: H4O OTCBB: HRTFF Market Cap C$150 million (C$0.27/share) Shares Outstanding 599 million (Basic) 674 million (Fully Diluted) Analyst Following Cantor Fitzgerald Buy Haywood Capital Mkts Buy Major Shareholders* Appian Natural Res. 19.9% Orion Mine Finance 7.2% Management 6.1% Senior Debt Financing: US$72.5 M BNP Paribas Bank Term Loan US$52.5 M Revolving Facility US$20.0 M

Head Office

(Toronto)

M tonnes Grade (g/t) Contained Au (oz) Indicated 4.2 8.12 1,108,000 Inferred 2.9 5.88 558,000

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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
  • Feasibility Study: March 2019
  • 65 Koz / year at 800 tpd
  • Low cost expansion to +95 Koz/yr

The Newest, High Grade Canadian Gold Producer

  • Resource more than tripled since 2016
  • 1.1 m oz Indicated – 55% increase from 2018
  • 83,850 hectare land package, 30 Km strike potential
  • Many property wide targets identified – over 90% of

the property is unexplored

District Scale Exploration Potential

MIDDL E ZONE WOL F ZONE

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Asset is de-risked from a development perspective

2018 ACHIEVEMENTS – SUGAR ZONE MINE

2018 – A big year for Harte Gold

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2018 – A big year for Harte Gold

Resource Update: Tripled Resource 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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Feasibility mine plan makes up a small portion of overall resource mineralization

NEAR MINE RESOURCE POTENTIAL

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Achieving Feasibility Plan for April

Q1 2019 RESULTS

4,500 9,000 13,500 18,000 January February March April ROM Ore Tonnes Actual Target

Mined Ore Tonnage – Achieved Plan In April Diluted Mined Grade – Achieved or Exceeded Plan

2.00 4.00 6.00 8.00 January February March April ROM Grade (Tonnes) Actual Target

Processed Ore – Exceeding Plan, Without Stockpiles Recoveries – Achieving Plan

4,500 9,000 13,500 18,000 January February March April Processed Ore (Tonnes) Surface Stockpile Mined Ore Target 50% 60% 70% 80% 90% 100% January February March April Mill Recovery Actual Target

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Stabilized throughput, higher grade = higher production, lower costs

OUTLOOK FOR 2019 AND BEYOND

Feasibility Study Plan FY 2019 FY 2020 Production Throughput (tpd) 581 800 Ore Tonnage (tonnes) 209,200 303,614 Diluted Head Grade (g/t) 6.18 6.98 Mill Recovery 95.5% 95.5% Gold Production (oz) 39,200 65,078 Operating Cost (US$/oz) Operating Cash Cost 800 - 825 615 AISC Cash Cost 1,300 - 1,350 913

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Expansion to 1,200 tpd throughput by 2022

FEASIBILITY STUDY: VALUE OPPORTUNITY

20 40 60 80 100 120 2019 2020 2021 2022 2023 2024 2025 2026 2027 Feasibility Study Production (koz Au)

800 tpd "Base Case" Expansion to 1,200 tpd

“Base Case” Annual: 65,000 oz/yr

Expansion Case: 95,000 oz/yr

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Sustainable, long-term capital structure, financing risk removed

ENHANCED BALANCE SHEET

Low interest rate, LIBOR + 2.875% to 3.875%

Removes refinancing risk / overhang

Partnership with a leading global financial institution, BNP Paribas

No repayment until March 2020

Flexible repayment schedule, Term Loan and Revolving Credit Facility US$72.5 Million Senior Debt Financing Package

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NEAR MINE EXPLORATION

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Objectives for 2019

 Convergence at depth – continue to prove our understanding of the deposit

OBJECTIVES:

 Focused drilling – target highest value areas!  Downhole IP – proven to be a valuable tool for generating targets

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PROPERTY-WIDE EXPLORATION

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Objectives for 2019

 Second pass exploration

  • f defined target areas

OBJECTIVES:

 Extend mineralization on strike and down dip of existing deposits  Discover mineralized trends adjacent to Sugar and Middle

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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 Feasibility Production: 61,000 ounces annually over LOM Resource update completed, Feasibility Study underway to declare reserves Feasibility Study: several value

  • pportunities identified
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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

Executive Vice President & Secretary; BA Hons. 25 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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Upgrade of Indicated Resources Will Positively Improve Mine Plan Economics

SIGNIFICANTLY EXPANDED RESOURCE

2018 – 2019 Mineral Resource Estimate Comparison (3 g/t Cut-Off)

Indicated Inferred M tonnes Grade (g/t) Contained Au (oz) M tonnes Grade (g/t) Contained Au (oz)

4.2 8.12 1,108,000 2.9 5.88 558,000 2.6 8.52 714,200 3.6 6.59 760,800 2018 February 2019

 55% increase Indicated Resources  Grade continuity confirmed, lower grade Inferred upgraded to higher grade Indicated  Infill drilling continues to successfully upgrade resources and increase grade!  Mineralization expanded – now includes Wolf, extended 1,300 metres down dip  Convergence of zones at depth continues

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“Base Case”: 800 tpd operation producing 61,000 ounces annually over 14 year mine life

FEASIBILITY STUDY (APRIL 2019)

Feasibility Study Summary

Commodity Price and FX Gold Price US$/oz 1,300 CAD:USD CDN:US 0.77 Mine Plan Summary Mine Life Years 14 Resource Mined Kt 3,879 Diluted Grade g/t Au 7.1 Processing Rate tpd 800 Recovered Gold Overall Recovery % 95.5% Gold Recovered (Life of Mine) Koz 849 Annual Production Koz/yr 61 LOM Operating Cost Cash Operating Cost US$/oz 643 AISC Cost US$/oz 845 Net Free Cash Flow Annual C$ million $30.9 LOM Cumulative C$ million $374.8 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 10 20 30 40 50 60 70 80 90 Head Grade (g/t) Recovered Gold (Koz) Recovered Gold Head Grade

Recovered Gold and Grade (Base Case)

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