In a July 8 research note, analyst Ryan Walker reported that a site visit to Harte Gold Corp.'s (HRT:TSX) 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 stepout 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 stoping 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.
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Disclosures from Echelon Wealth Partners, Harte Gold Corp., July 8, 2019
Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.
I, Ryan Walker, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.
Important Disclosures:
Is this an issuer related or industry related publication? Issuer.
Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? No
The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer. No
The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer. No
Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No
Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer? No
During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer? No
During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? No
Has the Analyst had an onsite visit with the Issuer within the last 12 months? Yes. Sugar Zone Mine site in White River, ON -- including mine office, underground workings, core facility, etc. (June 24, 2019)
Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No
Has the Analyst received any compensation from the subject company in the past 12 months? No
Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No
