Corporate Presentation October 2018 www.hartegold.com TSX: HRT | - - PowerPoint PPT Presentation

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Corporate Presentation October 2018 www.hartegold.com TSX: HRT | - - PowerPoint PPT Presentation

CANADAS NEXT HIGH -GRADE GOLD MINE G O L D C O R P Corporate Presentation October 2018 www.hartegold.com TSX: HRT | FRANKFURT: H4O | OTC: HRTFF FORWARD LOOKING STATEMENTS This presentation contains forward-looking information under


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G O L D C O R P

Corporate Presentation

October 2018

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

CANADA’S NEXT HIGH-GRADE GOLD MINE

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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"

  • r "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 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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COMPANY SNAPSHOT

CORPORATE STRUCTURE INSTITUTIONAL SUPPORT Analyst Following: Major Shareholders*: Headquartered: Toronto, Ontario, Canada Market Cap: C$265 million (C$0.46/share)

19.9%

Shares Outstanding: 581 million (Basic) 643 million (Fully Diluted) Symbol: TSX: HRT FRANKFURT: H4O OTCBB: HRTFF

Head Office (Toronto)

0.9% 7.2%

Debt Financing For Up To US$70 Million:

US$20 million US$50 million

* As at Q2 2018, source: Bloomberg

Buy C$0.75 Buy C$0.80 Buy C$1.20

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PROJECT LOCATION

83,850 HECTARES (>200,000 ACRES) CLAIMED ON A MAJOR GREENSTONE BELT IN AN ESTABLISHED MINING REGION

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2018 – A BIG YEAR FOR HARTE GOLD

Resource update: tripled resource PEA: $425 M pre-tax NPV5%, 60% pre-tax IRR1

 

IBA signed with Pic Mobert First Nation (PMFN)

1) 5% discount rate at gold price US$1,350/oz and CAD:USD 0.8000

Declare commercial production: Q4 2018

Resource Update: Q1 2019

Updated mine plan, final technical report: Q1 2019

Permits received for full production

 

Comprehensive debt financing package, up to US$70 M Announced first gold pour

100,000 meter drill program – near-mine and exploration targets

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SUGAR ZONE MINE BALL MILL

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SUGAR ZONE MINE PROCESING PLANT

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HIGH GRADE RESOURCE

SUGAR ZONE IS ONE OF THE HIGHGEST GRADE DEPOSITS GLOBALLY

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

0.0 4.0 8.0 12.0 16.0

Measured + Indicated Resource Grade (g/t Au) Sugar Zone Project (as at time of PEA, May 2018): 8.5 g/t Indicated Resource, 94th percentile 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

Development Projects Worldwide

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LEADING GROWTH PROFILE

HARTE GOLD PROVIDES SHAREHOLDERS LEADING EXPOSURE TO RESOURCE AND PRODUCTION GROWTH

* Selected single asset producers and < 200 Koz producers ** Average resource increase divided by exploration budget for that period Source: Analyst estimates, public company information

Resource Growth (2016 – 2018) Production Growth (2019E – 2021E)

(100%) (50%) 0% 50% 100% 150% 200% 250% 300% 350% (50%) 0% 50% 100% 150% 200% 250%

Leading resource and

production growth RESOURCE AND PRODUCTION GROWTH OF SELECTED PRODUCERS* `

Gold production increasing to >100,000 oz/yr by 2021 (PEA)

Resources tripled after 2017 drilling (138,000 m at Sugar / Middle Zones)

130,000 m drilling currently underway at Sugar, Middle, Wolf an Fox zones

Resource update targeted for early 2019

Only ~10%

  • f

the

  • verall

land package has been explored!

Bubble size illustrates ounces delineated for exploration dollars spent**

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400 800 1,200 1,600 Cash Operating Cost

STRONG OPERATING MARGINS

HARTE GOLD IS PROTECTED TO GOLD PRICE VOLATILITY

Low cost operation, simple metallurgy

Tabular ore body, steeply dipping – amenable to longhole stoping

Widths and modelled grades confirmed through Bulk Sample and Phase I Production

Near surface – ramp access, minimal distance to mill

Operating costs in CAD dollars

Several opportunities under review to lower costs further!

STABLE EQUITY MARGINS AT CURRENT GOLD PRICES 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 Today

PHASED MINE PLAN INCREASING TO 1,400 TPD

PROVIDES EARLY CASH FLOW AND LONGER TERM GROWTH Phase 1: 540 tpd (2018 - 2019) Phase 2: 800 tpd (2020) Phase 3: 1,400 tpd (2021+)

  • Low risk ramp-up to commercial production
  • Existing surface and underground mining infrastructure is sufficient to support

increased throughput

  • Throughput increased by adding second ball mill and leach circuit
  • Expansion to the Middle Zone allows for multiple stoping areas
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PRODUCTION PROFILE TO +100,000 Oz/Year

SCALABLE MINE PLAN DESIGNED TO MATCH UNDERGROUND DEVELOPMENT

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)

Throughput and Grade Production Forecast

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 Exploration Potential Resource Growth

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CONSTRUCTION IS COMPLETE AND COMMISSIONING WELL UNDERWAY

Construction / Commissioning

  • Construction of the crushing spread and mill

complex is complete

  • Grid connection completed
  • Underground development targets exceeded,

critical infrastructure is complete Permitting

  • Fully permitted for commercial production
  • IBA signed with proximal First Nation Band
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OPPORTUNITIES TO ENHANCE VALUE

 Improve head grade  Add resources to mine plan  Optimize mine plan

  • PEA incorporated drilling up to Dec. 2017
  • Increase drill density to improve overall grade
  • Infill drilling to date has returned very positive results
  • +500,000 ounces currently not factored into mine plan
  • Incorporate results from Wolf Zone and Footwall Zone
  • PEA contractor mining costs were conservative
  • Significant potential to optimize mine plan

SIGNFICANT DRILLING COMPLETED IN 2018 TO SUPPORT THE FOLLOWING:

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OPPORTUNITIES TO ENHANCE VALUE

AREAS TARGETED FOR NEAR MINE DRILLING “LOW HANGING FRUIT”

Southeast Northwest

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Southeast Northwest 5 Kilometre Strike Length

2018 DRILL PROGRAM

POSITIVE DRILLING TO IMPROVE RESOURCE GRADE AND ADD OUNCES TO THE MINE PLAN Wolf Zone Sugar Zone Deposit

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 Fox Zone

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 (FZ) 10.75 gpt Au/1.58m (FZ)

OPEN OPEN

49.96gpt Au/1.42m 14.79gpt Au/3.03m FW 6.42 gpt Au/4.23 m FW 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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DEEP DRILL TARGETS

FINAL DRILLING FOR 2018 WILL TEST CONTINUITY OF MINERALIZATION AT DEPTH

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ENHANCING PROJECT VALUE “STAIRWAY”

SEVERAL OPPORTUNTIIES NOT CAPTURED IN THE PEA

$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 ounces  mining dilution, lower mining costs

PEA Pre-Tax NPV5%

? ? ?

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Increased overall land position to 83,850 hectares 35 Km strike length to be explored Near-mine targets Sugar, Middle, Wolf and Fox Zones Eagle and Highway Zones permitted for exploration, drilling is underway

NEAR-MINE AND PROPERTY-WIDE EXPLORATION

`

Sugar Zone Middle Zone Wolf Zone

EM Targets Eagle Zone Fox Zone Lynx Zone Highway Zone Fisher Zone

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KEY TAKEAWAYS

 Fully permitted for commercial production  Production growing to +100,000 ounces annually by 2021  Simple mine design, well understood orebody  AISC US$708/oz – first quartile cash cost producer  Opportunities to grow value:  Improvements to grade through infill drilling (underway)  130,000 metres drilled in 2018 to be factored into updated resource model  Optimize mine plan, reduce dilution, lower mining costs  Updated resource and mine plan targeted for Q1 2019  Property wide exploration underway – only 10% of the land package has been explored!

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APPENDIX

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

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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

EXPERIENCED MANAGEMENT TEAM

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 (Cont’d)

Steve Ball

General Manager, Sugar Zone Mine; P.Eng. 30+ years

  • Technical, operations,

human resources, corporate affairs and project management

  • Formerly Mine Manager

at Vale’s narrow vein Coleman Mine and Voisey’s Bay

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

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UNDERGROUND MINING STARTED IN 2017

  • 70,000 tonne bulk sample completed in 2017, ore

shipped to Barrick’s Hemlo Mill for processing

  • 30,000 tonnes of underground development

completed to support commercial mining

  • Sugar Zone Mine is commercial production ready:

 Geology: Continuity, widths and modelled grades have been confirmed  Mining: Long-hole mining, minimal dilution  Processing: Simple metallurgy, high recoveries  Costs: Mining costs confirmed

Mine Development > 2,500 m Ore Shipped 67,454 DMT Grade 8.5 g/t Reconciliation with Barrick + 5% Direct Mining cost C$85 / t

BULK SAMPLE HIGHLIGHTS (BARRICK’S HEMLO MILL)

Viewing stope along strike. Clean break, minimal dilution

Opened Longhole Stope

Steeply dipping ore, 65-70°

8 Meter Width Lower Zone Ore Face

100,000 TONNES OF MATERIAL MINED TO-DATE, DE-RISKING TO COMMERCIAL PRODUCTION

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FULLY FUNDED TO PRODUCTION

CLOSED DEBT FINANCING PACKAGE WITH SPROTT RESOURCE LENDING AND APPIAN CAPITAL Sprott Facility

  • Up to US$50 million under a senior secured credit facility

Appian Subordinated Loan

  • US$20 million loan, subordinated to Sprott facility

Benefits

Flexible principal and interest schedule supports ramp-up of operations Sufficient liquidity to protect against unforeseen downturn in commodity prices No equity commitment No hedging, no cashflow sweeps and no debt service reserve account No off-take or royalty No commitment to draw full US$70 million

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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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NPV AND IRR SUMMARY

Unit Gold Price Sensitivities US$1,150/oz PEA Pricing US$1,350/oz

Macro Parameters Gold Price

US$/oz

$1,150 $1,250 $1,350 Exchange Rate

CAD:USD

0.80 0.80 0.80 Pre-Tax NPV and IRR NPV @ 5%

M C$

$263 $344 $425 IRR

%

40% 50% 60% Post-Tax NPV and IRR NPV @ 5%

M C$

$189 $244 $299 IRR

%

34% 42% 50%

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FIRST QUARTILE CASH COST PRODUCER

HARTE GOLD’S ALL IN SUSTAINING CASH COSTS ARE IN THE TOP QUARTILE OF PRODUCERS

Source: SNL Market Intelligence, 2017 gold production ranked all in sustaining costs * Projected positioning based on LOM all in sustaining costs relative to current producers

Cumulative Production 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 over mine life

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G O L D C O R P