ONTARIO – Harte Gold Corp. of Toronto is taking Sugar Zone gold deposit 25 km north of White River closer to production. The company has signed a term sheet for a gold loan of up to US$6-mllion, a tentative milling contract for the proposed bulk sample with Barrick Gold, and a fixed price mining contract with Technica Mining.
The final agreements are to be signed by the end of August for the gold loan and milling agreement, and by the end of July with the contractor.
Work at the Sugar Zone deposit has reached the advanced exploration stage. The next step is to take a 70,000-tonne bulk sample, and underground work will begin this month when the portal is collared. Hart is also working on an optimized mine plan to accelerate the production schedule and shorten the project timelines.
According to the preliminary economic assessment prepared in 2012, the Sugar Zone deposit contains 1.12 million tonnes at 8.41 g/t Au in indicated resources and 417,000 tonnes at 7.13 g/t in inferred material. The two categories together contain roughly 396,800 oz of gold. Capital expenditures were estimated at $108.00 million, and working capital at $10.06 million.
The Sugar Zone PEA can be read at HarteGold.com.