TORONTO, ONTARIO–(Marketwired – March 31, 2017) – HARTE GOLD CORP. (“Harte Gold”) (TSX:HRT)(OTC:HRTFF)(FRANKFURT:H4O) Harte Gold is pleased to announce its financial results for the year ended December 31, 2016. The 2016 Audited Financial Statements, Management’s Discussion and Analysis and the Company’s Annual Information Form are available at www.sedar.com and at the Company’s website www.hartegold.com. The overall financial position of Harte Gold has improved significantly since last year, as a result of a successful Advanced Exploration Bulk Sample program and financings that took place in 2016. The following summarizes some of the key financial results.
HIGHLIGHTS
- As of the end of December, the Company had shipped 41,464 tonnes of ore at an average grade of 8.48 grams/tonne for proceeds of approximately $17.7 million under the Advanced Exploration Bulk Sample Program. The Program was completed in March 2017 with a total of 67,454 dry tonnes shipped. A full reconciliation will be completed in May.
- Permits for the Phase 1 Production were received on January 12, 2017, providing for the mining of an additional 30,000 tonnes. The Company will prepare the sills and stopes for commercial production under this permit and stockpile mined ore, pending construction and commencement of on-site mill operations.
- The Company will be submitting an Amended Closure Plan to complete the requirements for commercial production permitting, with final approvals expected in Q3 2017.
- Harte Gold entered into a new $12 million contract with Technica Group Inc. on March 26th for additional ramp, sill and vent raise development to be completed under the new production permit.
- An engineering, procurement and construction management (EPCM) contract in the amount of $2.3 million was entered into with Halyard Inc. on March 23, 2017.
- Four drill rigs are on site, with two rigs upgrading the resource classification of the Sugar Zone Deposit in preparation for full commercial production, and two rigs are continuing to explore and better define the new Middle Zone discovery.
- A regional property-wide airborne geophysical program will begin in Q2 2017.
- Harte Gold added significantly to its land position in the vicinity of the Sugar Zone Property subsequent to year end, with an additional 131 claims totaling 32,592 hectares, increasing its total land position to 62,067 hectares, encompassing the majority of the Dayohessarah Greenstone Belt.
- Harte Gold’s cash position as of December 31, 2016 was $27.2 million subsequent to completion of a $25.0 million financing in which Appian Natural Resources Fund LP participated.
OUTLOOK
- Phase II Commercial Production permitting underway, with approvals expected in Q3 2017
- Final engineering for on-site mine infrastructure in progress
- Sugar Zone Deposit in-fill and down dip drill programs in progress
- Exploration drill program focused on Middle Zone and Wolf Zone in progress
- Property – wide airborne geophysics program to begin Q2, 2017
Stephen G. Roman, President and CEO said: “Harte Gold would like to thank Barrick Gold Corporation and its Hemlo Mine team for the successful completion of our Bulk Sample. Our Company has made significant advances in the past 12 months, and we look forward to continued success in 2017 as we advance the Sugar Zone towards production and follow up on exciting exploration results at depth as well as on the newly discovered Middle Zone and start to evaluate the rest of this large and promising property package.”
EXPLORATION POTENTIAL
Following completion of an IP Survey in Q3, 2016 over the 2.3 x 2.0 km area between the Sugar Zone Deposit and the Wolf Zone discovery, Harte Gold began an initial 5,000 meter drill program to follow up on IP targets identified under the survey. Drill results to date have been very encouraging. The new Middle Zone Discovery now measures approximately 400 x 500 meters and the Company has increased the initial drill program by an additional 15,000 meters.
The Company is also conducting a drill program at the Sugar Zone Deposit. Drilling is focused on upgrading the current resource classification and potentially increasing resources down dip. This program has also been successful with confirmation of continuity and grade within the currently defined Deposit and the discovery of significant down dip gold mineralization.
FINANICAL POSITION
| Financial Position | December 31, 2016 | December 31, 2015 | |||
| Cash and cash equivalents | $ | 27,232,409 | $ | 400,318 | |
| Receivables and prepaids | 2,802,946 | 527,563 | |||
| Current assets | $ | 30,035,355 | $ | 927,881 | |
| Restricted cash | 1,537,588 | 355,540 | |||
| Property and equipment | 102,940 | 37,939 | |||
| Exploration and evaluation expenditures | 44,170,665 | 29,397,307 | |||
| Total assets | $ | 75,846,548 | $ | 30,718,667 | |
| Accounts payable and accrued liabilities | $ | 10,384,552 | $ | 1,878,226 | |
| Flow-through share premium | 4,680,385 | 60,000 | |||
| Current liabilities | 15,064,937 | 1,938,226 | |||
| Secured notes | 2,203,254 | – | |||
| Deferred contract mining fee | – | 215,049 | |||
| Environmental rehabilitation provision | 1,370,807 | 347,953 | |||
| Deferred tax liability | 625,819 | 1,181,310 | |||
| Total liabilities | 19,264,817 | 3,682,538 | |||
| Shareholders’ equity | 56,581,731 | 27,036,129 | |||
| Total liabilities & shareholders’ equity | $ | 75,846,548 | $ | 30,718,667 | |
| 12 Months Ended | 12 Months Ended | |||||
| Results of Operations | December 31, 2016 | December 31, 2015 | ||||
| Net Income (Loss) | $ | (3,007,587 | ) | $ | (1,520,852 | ) |
| Income / (Loss) per weighted average share | (0.009 | ) | (0.006 | ) | ||
About Harte Gold Corp.
Harte Gold Corp. is focused on the exploration and development of its 100% owned Sugar Zone property where it has permitted a 70,000 tonne Advanced Exploration Bulk Sample for the Sugar Zone Deposit. The Sugar Zone property is located 80 kilometers east of the Hemlo Gold Camp. The Preliminary Economic Assessment dated July 12, 2012, contains an Indicated Resource of 980,900 tonnes, grading 10.13 g/t for 319,280 ounces of contained gold (uncapped) and an Inferred Resource of 580,500 tonnes, grading 8.36 g/t Au for 155,960 ounces of contained gold (uncapped). The mineral resource was prepared in compliance with NI 43-101 guidelines. George A. Flach P. Geo, Vice President Exploration, is the Qualified Person for Harte Gold and has prepared, supervised the preparation, or approved the scientific and technical disclosure in this news release. Harte Gold also holds the Stoughton-Abitibi property located on the Destor-Porcupine Fault Zone adjacent and on strike of the Holloway Gold Mine.
QA/QC Statement
The company has implemented a quality assurance and control (“QA/QC”) program to ensure sampling and analysis of mine and exploration work is conducted in accordance with industry standards. Drill core is sawn in half with one half of the core shipped to Actlabs Laboratories located in Thunder Bay, ON, while the other half is retained at the company’s core facilities in White River for future verification. Certified reference standards and blanks are inserted into the sample stream on a regular interval basis and monitored as part of the QA/QC program. Gold analysis is performed by fire assay using atomic absorption, gravimetric or pulp metallic finish.
Common Shares Outstanding: 444,099,119
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Stephen G. Roman
President and CEO
416-368-0999
sgr@hartegold.com
Harte Gold Corp.
David Ellis
Investor Relations Consultant
416-704-0937
davidellis@hartegold.com