In a July 8 research note, analyst Ryan Walker reported that a site visit to Harte Gold Corp. (TSX:HRT) Sugar Zone mine in White River, Ontario, left Echelon Wealth Partners impressed.
The favorable aspects include the "ease of access and compact nature of the mine, the ease of ore vein visual identification, the simplicity of processing and the compelling near-mine and regional exploration potential," Walker noted.
Walker also reported that "Ontario's newest gold producer" intends to pursue that "substantial exploration potential" on the property.
In its 2019 drill program, Harte intends to focus on targets near Sugar Zone, including its southern extension and convergence at depth of the Sugar-Middle and Middle-Wolf zones. "While early days, such relatively shallow mineralization proximal to planned development has the potential to have a greater nearer-term impact on the mine plan than the compelling potential extensions and coalescence of existing zones at greater depths," commented Walker. Harte also will continue step-out drilling along strike and downdip of the new zone.
Exploration elsewhere on the company's Greenstone Belt land package will first target the Hambleton Lake and K7 areas that were defined previously by geophysics, prospecting and limited drilling. At Hambleton Lake, Harte will test the alteration and iron formations downdip, and at K7, will aim to wholly define the extent of mineralization.
Walker reviewed the recent numbers from Sugar Zone. (Harte had declared commercial production there on Jan. 1, 2019.) After the operation produced 5,438 ounces of gold in April and May 2029, Harte maintained its guidance for the year of 39,200 ounces at an all-in sustaining cost (AISC) of US$1,300–1,350 per ounce.
The mill, having stabilized, ran during those months at 800 tons per day, and recoveries were as planned. After stopping is finished, expected by September, Harte will no longer feed the mill stockpiled material as a supplement, only run-of-mine production.
As for 2020, Harte expects to produce 65,078 ounces at Sugar Zone on the higher, 800 tons per day, throughput, and on higher average grade, 6.98 grams per ton as opposed to the 6.18 throughout 2019. The company also expects a lower AISC, at US$913 per ounce.
Harte is currently trading at around CA$0.26 per share. Echelon does not have a rating or target price on the company.