TORONTO, April 7, 2021 /CNW/ - HARTE GOLD CORP. ("Harte Gold" or the "Company") (TSX: HRT) (OTC: HRTFF) (Frankfurt: H4O) is pleased to announce Q1 2021 gold production of 11,776 ounces, representing the fifth consecutive quarter of production growth for the Company.
Operational Highlights for Q1 2021:
Operational Highlights – Q1 2021
Mine Capital Development
Ore Tonnes Processed
Monthly Gold Ounces Produced
Avg. oz Au / month
* Represents a mined daily rate as process plant was restarted midway through Q3 2020.
Frazer Bourchier, President and CEO commented:
"Harte Gold's Sugar Zone mine continued to generate positive momentum in the first quarter of 2021 as we made considerable improvements towards achieving key performance indicators during the quarter. Most importantly, mine development metres are currently tracking above targeted rates for 2021 and continue to be the critical gauge to future success in allowing access to more working stope areas and creating additional flexibility.
Despite a 35% improvement in ore production from the previous quarter, action plans continue to focus on equipment reliability and are resulting in steadily improving mechanical availability. With our solid performance against these markers, the Company should soon produce sustainably at our target rate of 800 tpd, and we maintain our 2021 production guidance of 60,000 to 65,000 ounces of gold."
Q1 2021 Operational Summary:
Mine Capital Development
Outperformance in mine capital development was driven by finalizing the transition to owner-operated mining, strengthening and aligning the mine workforce, improving maintenance practices and adhering strictly to plan to advance towards available working areas. The Company expects current performance to continue into Q2 2021 and for the balance of this year.
Ore Tonnes Processed
A total of 64,418 tonnes were processed in Q1 2021 for an average of 716 tpd. Throughput levels averaged approximately 700 tpd in January and February, constrained largely by mine production and working face availability at that time. Throughput increased to 740 tpd for March, despite a cone crusher shaft repair. For 17 operating days in March, throughput levels were at 750 tpd or greater.
The process plant continued to perform above plan, with ore tonnes processed limited only by mine ore haulage to surface. Remaining constraints on ore production from the underground are largely related to equipment availability and, to a lesser extent, budgeted workforce vacancies and the improvement of mine technical services effectiveness. Improving equipment availability is currently being addressed and additional planned mobile equipment will be operational in early Q2 2021.
Grade reconciled within 10% of budgeted grade for the period. While feed grade was marginally behind plan due to minor variances in stope sequencing and timing, mineral resource reconciliation continues to trend positively. Stope dilution of less than 10% was inline with expectations.
Average monthly gold production represented an 9% increase over Q4 2020, the fifth consecutive quarter of gold ounce production growth. While average monthly gold production was slightly below target, the Company is confident production rates will increase as throughput rates stabilize and higher-grade areas are accessed as per the mine plan.
About Harte Gold Corp.
Harte Gold holds a 100% interest in the Sugar Zone mine located in White River, Canada. The Sugar Zone Mine entered commercial production in 2019. Production guidance is 60,000 to 65,000 oz Au for 2021. The Company has further potential through exploration at the Sugar Zone Property, which encompasses 81,287 hectares covering a significant greenstone belt. Harte Gold trades on the TSX under the symbol "HRT", on the OTC under the symbol "HRTFF" and on the Frankfurt Exchange under the symbol "H4O".
Cautionary note regarding forward-looking information:
This news release includes "forward-looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook.
Specific forward-looking statements in this press release include, but are not limited to, current mine capital development performance continuing into Q2 2021 and for the balance of this year; additional mobile equipment being operational in early Q2 2021; production rates increasing as throughput rates stabilize and higher-grade areas enter the mine plan; the Company being able to produce sustainably at 800 tpd; gold production of between 60,000 and 65,000 oz Au in 2021; and further potential through exploration at the Sugar Zone Property.
Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management's experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such risks and uncertainties include, but are not limited to, there being no events of default or breaches of key financing agreements, including agreements with BNP Paribas and Appian; the Company being able to attract and retain qualified candidates to join the Company's management team and board of directors, risks associated with the mining industry, including operational risks in exploration, development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of the Company to obtain all permits, agreements, consents or authorizations required for its operations and activities; and health, safety and environmental risks, the risk of commodity price and foreign exchange rate fluctuations, the ability of Harte Gold to fund the capital and operating expenses necessary to achieve the business objectives of Harte Gold, the uncertainty associated with commercial negotiations and negotiating with contractors and other parties and risks associated with international business activities, as well as other risks and uncertainties which are more fully described in the Company's Annual Information Form dated March 25, 2020, and in other filings of the Company with securities and regulatory authorities which are available on SEDAR at www.sedar.com.
Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of the Company should not place undue reliance on these forward-looking statements. Readers are cautioned that the foregoing list of risks, uncertainties and other factors are not exhaustive. The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or in any other documents filed with Canadian securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. The forward-looking statements are expressly qualified by this cautionary statement. The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
SOURCE Harte Gold Corp.
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