G O L D C O R P High Grade Gold Mine Development and District Scale Exploration Annual Meeting June 27, 2017 TSX: HRT / Frankfurt: H4O OTC: HRTFF
FORWARD LOOKING STATEMENTS This presentation has been prepared by the Company and includes information from sources believed by management to be reliable. No representation or warranty, expressed or implied, is made as to the accuracy of the information set forth herein. The information contained herein is as of the date hereof and is subject to change, completion or amendment without notice. This presentation contains forward looking statements, estimates, and projections with respect to the anticipated future performance of the company that may be deemed to be “forward -looking statements. ” These statements, estimates, and projections reflect various assumptions made by the company concerning anticipated results, which may or may not prove to be correct. All statements contained in the presentation that address operating performance, future direction, management and control of the company, events or developments that are expected to occur in the future (including statements related to earnings, expectations, sales of assets, capital expenditures, or statements expressing general optimism about future operating results) are forward looking statements. Actual results could differ materially from those reflected in the forward looking statements contained herein as a result of a variety of factors, many of which are beyond the Company’s control. 2 TSX: HRT
COMPANY SNAPSHOT CORPORATE STRUCTURE INSTITUTIONAL SUPPORT Headquartered: Analyst Following: Toronto, Ontario, Canada Symbol: HRT:TSX H4O:FRANKFURT OTC: HRTFF Major Shareholder: (17%) Market Cap: C$308 million (C$0.68 Jun 26 th ) 52-Week Share Price: Shares Outstanding: 454 million (Basic) Share Price (C$) $0.90 4.5 Volume (Millions) 514 million (Fully Diluted) Head Office (Toronto) $0.60 3.0 Cash Position: C$25 million $0.30 1.5 $0.00 0.0 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 3 TSX: HRT
EXPERIENCED MANAGEMENT TEAM Stephen G. Roman Rein Lehari George Flach Roger J. Emdin Tim Campbell Chairman, President & Chief Financial Officer; Vice President Vice President, Projects; Vice President & CEO; BA CPA, CA Exploration; B Sc. P.Geo. P.Eng. Secretary; BA Hons. 35+ years 30+ years 30+ years 30+ years 20+ years Discovered Gold Previously Partner, Discovered / Senior management Government Eagle, sold to PricewaterhouseCo developed gold and operating relations, community Goldcorp ($1.5B) opers projects in West experience consultation Africa Verena Minerals / Belo Business valuation, Experience with large Corporate finance, Sun – Volta Grande, M&A, corporate 20Moz Gold Fields operating mines go-public Black Fox, Gabriel finance Tarkwa, 4Moz Bogosu including Glencore’s transactions Resources Limited and 2Moz Benso Nickel Rim Mine Regulatory mines in Ghana PDAC “Bill Dennis Chairman CEMI – compliance Award” winner, 2Moz Goulagou Center for Excellence Prospector of the mine in Burkino Faso in Mining Innovation Year, 2016 4 TSX: HRT
COMPANY STRATEGY “THREE LEGS ON THE STOOL” 1 2 3 Mine Development and Immediate Resource Regional Exploration on Commercial Production Expansion Through District Scale Land Near Mine Exploration Package Strike Length: 3 Km Property Size: 80,000 Ha Target Production: Q2 2018 Resource Target: ~3 million oz Exploration Budget: $15 million Phase 1 Target Production*: 540 tpd Update NI 43-101: Q4 2017 Additional Near-mine Targets Construction Begins: July 2017 MIDDLE ZONE WOLF ZONE MINING PORTAL ON-SITE INFRASTRUCTURE SITE OVERVIEW * Preliminary management mine plan estimates 5 TSX: HRT
SUMMARY OF ACHIEVEMENTS IN 2016 / 2017 THE LAST 12 MONTHS HAVE BEEN HIGHLY PRODUCTIVE $15 million, 75,000 meter drill program with 6 rigs active 70,000 tonne bulk sample program completed with Barrick’s Hemlo Mine Resource Development Property-wide airborne geophysical program initiated Expanded land position by over 100%, covering 80,000 hectares Strategic / financial partner: Appian Capital Advisory LLP Capital Raised over $50 million in total capital for development of the Sugar Zone project Markets Coverage initiated from three institutions 109 employees and contractors currently working at the Harte Gold site Commercial / Corporate Commercial production permits, supporting Phase 1 production Achievements Recipient of the NWOPA “Developer of the Year” award 6 TSX: HRT
RELATIVE PERFORMANCE HARTE GOLD HAS OUTPERFORMED INDICES AND PEERS 250% 221% 200% 150% 100% 50% Dev’t 38% Peers 1 TSX 8% 0% GDXJ -14% -50% Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Notes: 1) Includes selected gold development peers; includes Osisko Mining, Sabina Gold and Silver, Dalradian Resources, Victoria 7 Gold, Auryn, Pure Gold, Treasury Metals, Eastmain Resources TSX: HRT
GROWING INSTITUTIONAL FOLLOWING CONSENSUS TARGET PRICE: ~50% PREMIUM TO CURRENT MARKET PRICE INITIATED RECOMMENDATION / ANALYST RESOURCE INSTITUTION ANALYST QUOTE ESTIMATE COVERAGE TARGET PRICE Resource Potential “In our view, HRT is “pricing in” a resource Mike Buy August estimate of ~2 MMoz, which we believe is a 3 M oz Kozak C$1.10 / share 2016 very conservative “base case”. As all three zones continue to expand… we believe the share price will reach much higher levels”. Project Economics “Based on our expectations for the upcoming Pierre April Buy technical report and mine plan, as well as our 1 M oz Vaillancourt 2017 C$1.00 / share long-term outlook for the Sugar Zone deposit, the project has strong economics”. Exploration Upside Michael May Outperform “We think key geological features related to 1.1 M oz (DCF) high grade indicate the potential for expansion Gray 2017 C$0.90 / share 5 M oz (Potential) of existing deposits and point to the discovery of multiple deposits”. Consensus: C$1.00 / share 3 M oz 8 TSX: HRT
VALUE PROPOSITION STRONG POTENTIAL FOR RE-RATING AS HARTE ADVANCES TOWARDS PRODUCTION P / NAV 1 RELATIVE POSITIONING $1,600 +$1.3 B 0.88x 0.67x $1,200 0.56x Market Capitalization (@ Target Valuation) $800 ? Harte Developers 2 Mid-Tier 3 Producers (@ Analyst Consensus $400 NAV: $566 M) (Today) $0 $0 0.25x 0.50x 0.75x 1.00x 1.25x Valuation (P / NAV) Notes: 1) Available analyst NAV estimates Source: Analyst estimates, public company information, 2) Includes Osisko Mining, Sabina Gold and Silver, Dalradian Resources, Victoria Gold, Auryn, Pure Gold, Treasury Metals, Eastmain Resources Harte Gold management estimates 3) Peer group includes 50 - 150 Kopa producers; TMAC Resources, Richmont Mines, Alacer Gold, Premier Gold Mines, 9 TSX: HRT Wesdome, Roxgold, Argonaut Gold, Mandalay Resources, Alio Gold, Primero Mining Bubble size denotes relative resource size
MINING - BULK SAMPLE COMPLETED 70,000 TONNE BULK SAMPLE COMPLETED, POSITIVE RESULTS DE-RISK MOVE TO COMMERCIAL PRODUCTION LOWER ZONE OREBODY BULK SAMPLE HIGHLIGHTS Mine Development > 2,500 m Ore Shipped 67,454 DMT Grade 8.5 g/t OPENED LONGHOLE STOPE Reconciliation with + 5% Barrick Direct Mining cost C$85 / t As at March 31, 2017 10 TSX: HRT
COMMERCIAL PRODUCTION READY BULK SAMPLE MINING RESULTS Geology: Confirmed continuity, mineralized widths and modelled grades Mining: Long-hole mining, minimal dilution Processing: Simple metallurgy and high recoveries Costs: Contractor mining costs confirmed Site: Underground and site infrastructure, 20km all weather access road PERMITTING AND FIRST NATIONS ENGAGEMENT Phase 1 Commercial Permit Issued: January 2017 Strong working relationship between Harte Gold and proximal First Nations Band, exploration agreement in place since 2011, IBA expect signing in H2 2017 11 TSX: HRT
PROCESS PLANT DESIGN 12 TSX: HRT
SUGAR, MIDDLE AND WOLF ZONES RESTIVITY PLAN VIEW: ANNUAL GENERAL MEETING 2016 TSX: HRT
LONGITUDINAL SECTION VIEW 14 TSX: HRT
EXPLORATION – ACHIEVEMENTS WELL DRILLED, OPEN ON STRIKE AND AT DEPTH SAMPLE DRILL RESULTS (JUNE 2017) Sugar Zone Deposit Hole Width Grade ► Open along strike and down dip Sugar Zone SZ-17-138 3.0 m 65.4 g/t ► Higher grade than originally expected Sugar Zone SZ-17-143 3.2 m 66.8 g/t Middle Zone Sugar Zone SZ-17-133 1.75 m 41.7 g/t ► 500 meters north of the Sugar Zone and beginning Sugar Zone SZ-17-134 1.80 m 33.6 g/t 200 meters below surface 2.05 m 115.5 g/t Sugar Zone SZ-17-162 ► Expanded to 400 meters on strike and 800 meters down dip Sugar Zone SZ-17-165 2.24 m 35.5 g/t ► Recent drilling indicates wider and higher grade Middle Zone WZ-16-45 3.80 m 17.6 g/t intersections at depth and potential convergence with Sugar Zone Middle Zone WZ-16-49 1.93 m 38.6 g/t Middle Zone WZ-16-52 3.45 m 38.5 g/t Wolf Zone Middle Zone WZ-16-69 4.02 m 8.3 g/t ► Mineralization defined to a depth of 150 meters, similar characteristics to the Sugar Zone 9.57 m 6.5 g/t Middle Zone WZ-16-75W ► Discovery hole 9.5 g/t Au over 7.5 meters, with high- 7.56 m WZ-16- 8.0 g/t Middle Zone grade core of 22.9 g/t Au over 3 meters 75W2 15 TSX: HRT
SUGAR ZONE SOUTHERN EXTENSION MAGNETOMETER SURVEY Portal Grabs 595.3, 54.2 and 6.6 gpt Au Grab 74.2 gpt Au Grabs 38.1, 24.0 and 16.8 gpt Au Grabs 114.7 and 29.3 gpt Au Grabs 12.8 and 8.7 gpt Au 16 TSX: HRT
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