ONTARIO – Harte Gold Corp. says the economics of its Sugar gold zone are considerably improved now that updates have been made to the preliminary economic assessment. As well, recently built roads improve access to the site 60 km east of the Hemlo gold camp, and this year’s drilling results have extended the zone at depth.
The changes made to the PEA significantly reduce the pre-production capital expenses, originally pegged at C$108 million. Key to the reduction is the use of custom milling rather than building a processing plant on site. Development costs have been trimmed as well.
Harte is currently seeking a permit for advanced exploration at Sugar so that the continuity and grade can be confirmed and the resources can be upgraded. The current NI 43-101 indicated resource of 980,900 tonnes, grading 10.13 g/t Au for 319,280 oz of contained gold (uncapped) and an inferred resource of 580,500 tonnes, grading 8.36 g/t Au for 155,960 oz of contained gold (uncapped). Once in commercial production (700 t/d), the Sugar zone project is expected to generate C$60 million EBITDA using a gold price of US$1,490 per ounce.
Visit the company’s website at HarteGold.com.