TORONTO, ONTARIO–(Marketwired – May 13, 2015) – HARTE GOLD CORP. (“Harte Gold”) (TSX:HRT)(FRANKFURT:H4O)(OTC:HRTFF) and Technica Mining (“Technica”), a Sudbury, Ontario based mining contractor, are pleased to announce the signing of a Heads of Agreement (the “Agreement”) on Harte Gold’s Sugar Zone Deposit.
Highlights of the Agreement, Technica will:
- Mine the 70,000 tonne bulk sample under a $20 million fixed price contract.
- Receive $5 million of the fixed price contract amount in the form of Harte Gold common shares at $0.15/share, which shares will be held in escrow pending completion of the Bulk Sample.
- Receive 1/4 warrant/share exercisable at $0.30/share for 18 months following completion of the Bulk Sample.
- Be responsible for surface works, collaring the portal, underground development and mining work.
- Have the option to put the shares back to Harte Gold within a 36 month period following completion of the Bulk Sample at a 100% premium provided that any such purchases by Harte Gold account for no more than 25% of Harte Gold’s free cash flow.
Highlights of the Bulk Sample:
- 70,000 tonne high grade Bulk Sample located close to surface
- First mineralized rock is expected in January 2016 at a rate of 300 tonnes/day
- Completion anticipated to be end of 2016
- Milling options are currently under review, including toll milling at nearby mills
- Financial arrangements are ongoing
- Harte Gold is currently engaged in discussions regarding non-dilutive loan and/or gold off-take agreements.
- An optimized preliminary five year mine plan, based on the Corporations’ Preliminary Economic Assessment dated May 31, 2012 has been designed by independent engineering consultants down to a 400 meter depth.
Stephen G. Roman, President and CEO of Harte Gold said: “We are extremely pleased to be able to announce this Agreement with Technica. They are a highly regarded and competent group that has an excellent track record, especially with their safety performance, having provided contract mining services to some of the largest mining companies in the Sudbury basin. We look forward to a long and mutually rewarding relationship.”
Mario Grossi, President and CEO of Technica Group Inc. said: “We are equally pleased to make this announcement in working with the exceptional team at Harte Gold. It is in line with our approach to diversify and expand our portfolio of services to the mining industry. We are eager to expand beyond contract mining services and now offer unique financing solutions for our clients. It is projects like Harte’s Sugar Zone that makes this offering possible.”
The Agreement is subject to the parties entering into a Definitive Agreement and Regulatory approval.
Bulk Sample Schedule
Harte Gold has begun final road and site development work and anticipates collaring the portal by the end of June, 2015, with underground development commencing immediately thereafter.
Harte Gold is pleased to announce that its recently completed exploration drill program designed to follow up on drilling completed earlier this year, intersected all three zones; the Upper, Lower and Footwall Zones in two drill holes located approximately 300 meters south of the currently defined southern boundary of the Sugar Zone Deposit. Though these near-surface mineralized intersections were narrow (<1m), Harte Gold is pleased with the assay results of 10.32g/t Au over 0.64 meters in hole SZ15-95 and 7.39g/t Au over 0.62 meters in hole SZ15-86. The Sugar Zone mineralized structures have now been confirmed over a distance of 1.1 kilometers. The drill program also tested the “Contact Zone” and encountered Hemlo style geochemistry in two of six drill holes. Harte Gold looks forward to following up these results in future exploration drilling programs.
About Technica Mining
Technica is a Sudbury based Mining Contractor that has become one of the fastest growing, safest mining service providers in Ontario. By focusing on delivering unique mining solutions to meet their clients’ toughest challenges, they have demonstrated their ability to deliver safe, quality work to a wide range of work places. The strategy of growing its business outside of mine contracting through the offering of unique financing solutions is the next phase of their strategy to gain an international presence in the mining industry.
About Harte Gold Corp.
Harte Gold Corp. is focused on the exploration and development of its 100% owned Sugar Zone property and is currently permitting an advanced exploration program for the Sugar Zone Deposit. The Sugar Zone property is located 60 kilometers east of the Hemlo Gold Camp and as of February 2011, 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. Harte also holds the Stoughton-Abitibi property located on the Destor-Porcupine Fault Zone which is directly adjacent to and on strike of St Andrew Goldfield’s Holloway Gold Mine and its high grade “Smoke Deep Discovery” in the Timmins, Ontario Porcupine gold camp.
QA / QC Statement
Drill core was logged in Harte Gold’s secure core facility in White River, Ontario. Samples were hand delivered to the AGAT preparation lab in Thunder Bay where they were crushed and pulverized and sent to the Mississauga lab for analysis. Samples were fire assayed using a 30 gram representative sample and finished with ICP analysis. Additional ICP analysis was done for pathfinder elements. For quality control and quality assurance a standard sample was inserted every 20 samples during the program and a blank sample was also inserted every 20 samples, however, within the mineralization a blank was also inserted after every sample. Samples exceeding 1 gram / tonne Au were re- assayed, in cases where visible gold is abundant, metallic screen analysis is used. R.S. Middleton P.Eng. supervised the recent drill program and oversaw all logging, splitting and assay procedures for the project. Mr. Middleton is acting as the Qualified Person for Harte Gold Corp. in regards to this project and has approved the scientific and/or technical disclosure in the news release.
Common Shares Outstanding: 257,240,532
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Harte Gold Corp.
Stephen G. Roman
President and CEO
Harte Gold Corp.
Investor Relations Consultant