TSX-listed Harte Gold said that it was “well positioned for growth” at the Sugar Zone mine, in Ontario, with its full-year guidance set at between 42 000 oz and 48 000 oz, marking an increase of between 54% and 76% over the company’s 2019 production.
The miner said on Thursday that it felt “very encouraged” by the progress it had made, particularly through the fourth quarter of 2019. Harte Gold president and CEO Sam Coetzer dubbed this period as “transformation on various changes”, citing changes implemented throughout the organisation, including governance, management and operational.
Total gold production for 2019 was 27 316 oz, which exceeded the revised guidance range of between 24 000 oz and 26 000 oz. The miner initially guided output of 39 200 oz for the year, but lowered its target following a weaker-than-expected third quarter.
The fourth quarter’s gold production was 8 017 oz, the highest quarterly result to-date, and representing a 32% increase over the third quarter of 2019. Further, in December, Harte said that the grade appears to “be trending higher” relative to previous months.
Waste development rates improved during the last month of the 2019 calendar year by more than 20% over the previous month, while the backfill tonnes placed at more than 200% of the target.
Contractor manpower performance also improved for the month of December as initiatives to attract work force to the mine take effect, Harte said this week.
According to Coetzer, leading indicators like waste development, backfill rates and stope drilling continue to improve.
“We believe Harte Gold is now poised for long term growth and is on the path to becoming a profitable producer,” he said, reiterating the miner’s goal of further production growth during the new year.
After 2020, production growth is expected to continue as higher-grade areas of the mine become accessible. While mined tonnages are consistent in 2021 and 2022, the average grade of areas mined in those years is expected to improve.
The company is currently managing its near-term working capital requirements with funds from drawdown of the standby commitment, while simultaneously also assessing various financing alternatives to support mine development and other capital requirements as necessary for 2020.