Issue link: http://resourceworld.uberflip.com/i/581931
42 www.resourceworld.com o c t o b e r / n o v e m b e r 2 0 1 5 HARTe GoLd bulk sampling Sugar Zone deposit by Thomas Schuster In May this year, Toronto-based Harte Gold Corp. [HRT-TSX; H4O-FSE; HRTFF- OTC], inked a deal with mining contractor, Technica Mining, to take a bulk sample from their wholly-owned Sugar Zone gold deposit, 60 km east of the Hemlo gold camp in Ontario. Harte Gold is in the process of explor- ing and developing its high-grade Sugar Zone deposit which currently hosts indi- cated resources containing 319,300 oz gold averaging 10.13 g/t gold (uncapped). An additional 156,000 oz averaging 8.63 g/t gold (uncapped) is classified in the inferred cat- egory. The company believes it can outline a 1 million ounce deposit on its property. In terms of grade, the Sugar Zone deposit cur- rently ranks in the top 10% globally. The deposit is only defined to a depth of 500 metres and mineralization has been traced to depths of over 1 km vertically and over 1 km along strike. There are also numerous additional promising targets to follow up, specifically; the Wolf Zone where drilling intersected 9.5 g/t gold over 7.5 metres; and the Contact Zone where drilling identified promising Hemlo-style pathfinder elements. Management's strategy is to begin mining the deposit while it continues exploration to expand its size at depth and along strike. As the company continues to explore for additional mineralization nearby, Technica Mining has been contracted to develop underground access and remove a 70,000- tonne bulk sample. Harte Gold believes this sample will yield in excess of 25,000 ounces of gold. The first mineralized rock is expected to reach the surface in January 2016 at a rate of 300 tonnes per day. "Technica Mining is a highly regarded and competent group that has an excellent track record, especially with their safety performance," commented Stephen G. Roman, President and CEO of Harte Gold. Mario Grossi, President and CEO of Technica Group Inc. said, "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 proj- ects like Harte's Sugar Zone that makes this offering possible." Technica has agreed to develop under- ground workings and perform the bulk sample for a fixed price contract worth $20 million. Technica will receive $5 million of the contract in the form of Harte common shares at a price of $0.15 per share. These shares will be held in escrow until the com- pletion of the bulk sample. A ΒΌ warrant is attached to each share and is exercisable at $0.30 for a period of 18 months following the completion of the bulk sample. Technica will have the option to put the shares back to Harte Gold within 36 months following completion of its contract at a 100% pre- mium, provided such a purchase by Harte Gold accounts for no more than 25% of the company's free cash flow. Harte Gold is looking for a non-dilutive loan and/or gold off-take agreements to fund the rest of the bulk-sample con- tract. Towards that end, the company recently signed a term sheet with Auramet International LLC for a gold loan of up to US $6 million together with a working capital facility. Details of this agreement are being finalized. In July, Harte Gold signed a letter of intent with Barrick Gold to process the bulk sample mineralization at its Hemlo Mill. The final agreement explaining the details of this transaction is also expected soon. Harte also holds the Stoughton-Abitibi property located on the Destor-Porcupine Fault Zone which is directly adjacent to and on strike of the St. Andrew Goldfields' Holloway gold mine and its high-grade Smoke Deep Discovery in Timmins. The company has 257 million shares outstand- ing and a market capitalization of about $13 million. n miNiNG