Harte Gold delivers strong Q4 production, exceeds guidance

Production of 8,017 oz. gold in the fourth quarter from its Sugar zone mine has allowed Harte Gold (TSX: HRT; US-OTC: HRTFF) to exceed its previously revised production guidance of 24,000 oz. to 26,000 oz. for 2019. This represents an increase over the 6,069 oz. produced in the third quarter for a total of 27,316 oz. gold delivered in 2019.

“The quarter has been transformational on various fronts from changes implemented throughout the organization, including governance, management and operational,” Sam Coetzer, Harte Gold’s president and CEO, says in a press release. “Leading indicators like waste development, backfill rates and stope drilling continue to improve.”

December appears to have been a particularly positive month for the company, with head grades increasing due to greater availability of stoping ore and better development rates. Backfill placement that month also exceeded targets without using the paste plant, confirming the use of rockfill as a viable alternative as the paste plant is fine-tuned.

This year, the company plans to further grow its production to the 42,000 oz. to 48,000 oz. range at estimated all-in sustaining costs (AISCs) of US$1,475 to US$1,650 per ounce. Harte expects this increase to be driven by improvements in both tonnages extracted and grades processed.

Beyond 2020, the company expects to continue to grow production from ongoing improvements in grade.

The total capital spend in 2020 is estimated at $29.7 million, $18.5 million is allocated for underground development with $11.2 million planned for infrastructure upgrades. The company has drawn down funds from the standby commitment and is assessing financing options for 2020.

Harte declared commercial production at the Sugar zone mine in January 2019, but delays in decline development last year caused the company to cut its production guidance and increase its costs forecast in November. The most recent all-in cost guidance for 2019 was at US$2,000 to US$2,200 per ounce.