Harte Gold anticipates 50% production bump at the Sugar Zone Mine by the Q4

By Kevin Vincent

It’s as busy as a beehive at the Sugar Zone Mine and the elusive sweetspot is within reach for the mine operated by Harte Gold, just north of White River. The company began a restart of mine and milling operations in mid-July following COVID-related production cutbacks to protect employees.

By mid-summer the company announced that all mine activities commenced at the Sugar Zone mine. Backfill, waste and ore development were meeting or exceeding expectations. Long-hole blasting and ore haulage rates are improving daily. A significant stockpile has been built-up to feed the mill.

The transition to an owner-operator workforce is proceeding as planned. The company says significant interest has been received from mine contractors looking to transition to full-time Harte Gold employees and potential new hires, with over 1,000 resumes pouring in and a special emphasis on owneroperators. The company expects it will save anywhere from $60-$100 per ounce with the owner-operator program.

Harte Gold is targeting 1200 tonnes-per-day (tpd) throughput at the mill – an increase from 800tpd - all with an eye toward increasing gold output and of course, profitability. A study on that expansion is expected to be finalized by the end of this year.

On the financial side, in late August, the company announced it closed a US$18.5 million non-revolving credit facility provided by AHG (Jersey) Limited, secured by a second priority ranking lien on the company’s assets. That facility matures on June 30, 2023 and accrues interest at a rate per annum equal to 14%, which is payable in common shares of the company.

US$1 million of the proceeds from the credit facility were used to prepay part of the company’s currently existing non-revolving term credit facility with BNP Paribas and the other lenders from time to time. AHG (Jersey) is willing to open its cheque-book a little further. The credit facility also maintains an uncommitted US$20 million accordion option, which can increase the aggregate principal amount available under the Credit Facility to US$48 million.

The Sugar Zone produced just over 27,000 ounces in 2019, the first full year under Harte Gold management. The company expects to produce about the same in 2020 (24,000) but a big jump to as much as 65,000 ounces in 2021.

On the exploration side, the company has budgeted for 16,000 metres of ore definition and extension drilling for this year.

Sam Coetzer, President and CEO of Harte Gold commented: “During my visit to the Sugar Zone mine earlier, I was encouraged by the focus and commitment of the team to effect a positive restart. The underground team is highly motivated to achieve its goals and the processing team is eager to turn on the mill. Mine management is also well underway to deliver a seamless transition to owner-operator, which is expected to be completed over the next few months.

At press time Harte Gold announced the appointment of Frazer Bourchier as President, CEO and Director of the Board of Directors, effective September 21, 2020. Mr. Bourchier will replace Sam Coetzer, who has stepped down from the position of President and CEO, for personal reasons. Sam will continue to serve on Harte Gold’s Board of Directors. The Company also announces Martin Raffield is stepping down as Executive Vice President and COO of Harte Gold, effective September 21, 2020. Dr. Raffield is a resident of the United States and made the decision to resign due to constraints on cross border travel due to the pandemic. Dr. Raffield will remain as a consultant to the Company until completion of the Feasibility Study, expected in Q4 2020. Dan Gagnon, currently General Manager of the Sugar Zone Mine, has been appointed Vice President, Operations, effective September 21, 2020.

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