Harte Gold Corp. announced the results of a positive preliminary economic assessment for its Sugar Zone project near White River, Northern Ontario.
Harte Gold Corp. (TSX:HRT) announced the results of a positive preliminary economic assessment (“PEA”) for the company’s 100 percent owned Sugar Zone project near White River, Northern Ontario.
Highlights are as follow:
80,700 ounces of average annual gold production at a C1 cash cost of US$507 an ounce and AISC of US$708 an ounce over an 11 year mine life from 2019 onwards.
- 904,000 ounces of total recovered gold production over mine life, approximately two thirds of the combined Indicated and Inferred Mineral Resources announced February 15, 2018.
- The PEA studied a phased development approach with a goal of achieving near-term cash flow while minimizing initial underground development work, starting at 540 tpd at the Sugar Zone, increasing to 1,400 tpd by year 2021 as access to the Middle zone mineral resources are incorporated into the mine plan.
- The benefit of mining the higher grade areas of the Sugar and Middle zones in parallel is expected to increase average annual gold production to over 100,000 ounces from 2021 to 2025.
- 54,500 ounces of average annual gold production is targeted for 2019 and 2020.
- C$58 million remains to be spent in 2018 as of March 31, 2018, on process plant completion, underground development and working capital. Process plant construction is over 80 percent complete. The company expects to be starting production by July 2018.
- Management have identified a number of opportunities, outside the scope of the mine plan studied in the PEA, which could further improve the mine plan and economics of the project. These opportunities, while still being explored, were recognized based on the positive infill drilling and mine plan optimizations, currently underway.
- The following table summarizes NPV and IRR at various gold price and exchange rate sensitivities
Stephen G. Roman, president and CEO, commented:
The PEA demonstrates an economically robust, low cost operation with a scalable mine plan designed to match underground development. With a target of 1,400 tonnes per day producing over 100,000 ounces per year, Harte Gold will have the cash flow to continue property wide exploration and the ability to target high impact acquisition opportunities.