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www.hartegold.com TSX: HRT FRANKFURT: H4O OTC: HRTFF
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
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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.
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* 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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MIDDL E ZONE WOL F ZONE
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Resource Update: Tripled Resource US$70 million comprehensive debt financing announced Production Permits Received Sugar, Middle and Wolf zones converging at depth Declared Commercial Production IBA signed with Pic Mobert FN First Gold Pour Footwall Zone discovery at the Middle Zone
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4,500 9,000 13,500 18,000 January February March April ROM Ore Tonnes Actual Target
Mined Ore Tonnage – Achieved Plan In April Diluted Mined Grade – Achieved or Exceeded Plan
2.00 4.00 6.00 8.00 January February March April ROM Grade (Tonnes) Actual Target
Processed Ore – Exceeding Plan, Without Stockpiles Recoveries – Achieving Plan
4,500 9,000 13,500 18,000 January February March April Processed Ore (Tonnes) Surface Stockpile Mined Ore Target 50% 60% 70% 80% 90% 100% January February March April Mill Recovery Actual Target
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Feasibility Study Plan FY 2019 FY 2020 Production Throughput (tpd) 581 800 Ore Tonnage (tonnes) 209,200 303,614 Diluted Head Grade (g/t) 6.18 6.98 Mill Recovery 95.5% 95.5% Gold Production (oz) 39,200 65,078 Operating Cost (US$/oz) Operating Cash Cost 800 - 825 615 AISC Cash Cost 1,300 - 1,350 913
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20 40 60 80 100 120 2019 2020 2021 2022 2023 2024 2025 2026 2027 Feasibility Study Production (koz Au)
“Base Case” Annual: 65,000 oz/yr
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Convergence at depth – continue to prove our understanding of the deposit
Focused drilling – target highest value areas! Downhole IP – proven to be a valuable tool for generating targets
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Second pass exploration
Extend mineralization on strike and down dip of existing deposits Discover mineralized trends adjacent to Sugar and Middle
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Chairman, President & CEO; BA 35+ years
to Goldcorp ($1.5B)
Volta Grande, Black Fox, Gabriel Resources Limited
winner, Prospector of the Year, 2016
Vice President, Operations; P.Eng. 30+ years
Glencore’s Nickel Rim South Mine
for Excellence in Mining Innovation
Independent Consultant; B.Sc. P.Geo. 30+ years
gold projects in West Africa
4Moz Bogosu and 2Moz Benso mines in Ghana
Burkino Faso
Chief Financial Officer; CPA, CA 30+ years
PricewaterhouseCoopers
corporate finance
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Vice President, Corporate Development; MBA, B.Eng. 15+ years
finance, corporate strategy and valuations
banker with Standard Chartered Bank
Executive Vice President & Secretary; BA Hons. 25 years
consultation
Resource Geologist; P.Geo. 35+ years
geological database management, modelling and resource estimation
geologist at Barrick’s Hemlo Mine
General Manager, Sugar Zone Mine; P.Eng. 35+ years
underground mining environments
Manager of the Seabee Mine in Saskatchewan
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2018 – 2019 Mineral Resource Estimate Comparison (3 g/t Cut-Off)
Indicated Inferred M tonnes Grade (g/t) Contained Au (oz) M tonnes Grade (g/t) Contained Au (oz)
4.2 8.12 1,108,000 2.9 5.88 558,000 2.6 8.52 714,200 3.6 6.59 760,800 2018 February 2019
55% increase Indicated Resources Grade continuity confirmed, lower grade Inferred upgraded to higher grade Indicated Infill drilling continues to successfully upgrade resources and increase grade! Mineralization expanded – now includes Wolf, extended 1,300 metres down dip Convergence of zones at depth continues
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Commodity Price and FX Gold Price US$/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)