Harte Gold Reports Production Increase in Q2 2019
Hart Gold Corporation announced production increases during the second quarter of 2019 from its Sugar Zone gold mine, near White River, Ontario.
Harte Gold reported a production increase of 42% during the second quarter to 7,754 oz. A total of 42,601 tonnes of ore were mined for the quarter, a 33% increase over Q1 2019. The average grade of ore mined was 6.01 g/t.
The mill processed 53,216 tonnes of ore (591 tpd average), a 39% increase quarter over quarter. The average head grade processed was 4.89 g/t resulting from the blended grade of mine production and the lower grade surface stockpiles mill feed was supplied by 80% run of mine ore and 20% surface stockpiles.
Moving forward, gold milled from Sugar Zone will be totally from run of mine ores as the surface stockpiles were used up by the end of July.
The reported net revenue for Harte Gold was $11.8 million a 50% increase over first quarter revenue. The increased revenue was attributable to the increased gold production and higher gold prices.
The average realized gold price for the quarter was US $1,305 per payable ounce.
Mine earnings before interest, taxes, depreciation, and amortization ( EBITDA) for Q2 2019 was $2.7 million, compared to a loss of ($2.5) million in Q1.
Operating costs were stabilized in Q2, cost containment measures are taking effect. Cash costs were reduced 26% quarter over quarter, to US$1,070/oz. All in sustaining costs (AISC) reduced 33% to US$1,734/oz.
Harte Gold says AISC will decline in the second half of 2019 as their costs stabilize and ounces produced increase
Second quarter mine development costs, $4.3 million, were consistent with Q1 and reflect the capital required for underground infrastructure necessary to support continued ramp-up of the mine.
Delays with completion of mine ventilation and start-up of the paste fill plant impacted stope availability for the quarter. Mine ventilation has since been resolved and the paste fill plant should be fully operational by the end of September.
The company is currently operating from both the Sugar Zone north and south areas, which will provide sufficient underground material to achieve the 800 tonne per day production target by the end of Q4 2019
Production tracked approximately 80% of the Feasibility Study plan for Q2 2019
Harte reported they entered into a hedge program in connection with the BNP Paribas financing, comprising approximately 79,000 oz. over the years 2020 through 2024, representing 24% of payable gold projected to be produced over this period, with a high of 32% in any year.
Unrealized hedge gains (losses) are recognized in each accounting period and reversed when the hedge contracts mature in future periods.
Harte also reported on repaying the US$20 million loan from Appian Natural Resources Fund and the US$40 million loan from Sprott Private Resource Lending (Collector) LP plus accrued interest, prepayment penalties, production payment liability and other costs, totalling approximately US$70.7 million.
Harte Gold Corp is Ontario’s newest gold producer through its wholly owned Sugar Zone Mine in White River Ontario. Full production started in January, 2019.
Based on a mineral resource estimated issued on February 19, 2019 using a 3 g/t gold cut-off, the indicated Mineral Resource of at Sugar Zone is 4,243,000 tonnes grading 8.12 g/t for 1,108,000 ounces contained gold.
For more information visit: https://www.hartegold.com/
|