Harte Gold slashes guidance following below-target third quarter
Toronto-headquartered Harte Gold, which operates a mine in Ontario, has lowered its guidance for 2019, following below-target production during the third quarter.
The company is now forecast to produce between 24 000 oz and 26 000 oz at an all-in sustaining cost (AISC) of $2 000/oz to $2 200/oz, rather than its previously guided 39 200 oz at an AISC of $1 300/oz to $1 350/oz.
The production downgrade comes after its third-quarter output of 6 069 oz was 22% below the prior-year period’s 7 754 oz and 43% under the feasibility plan’s 10 600 oz.
Gold production in the first nine months of the year was 19 138 oz. Owing to issues around mine development and stope availability in the third quarter, the company expects fourth-quarter production to be in the range of 5 000 oz to 7 000 oz.
Harte Gold explained on Friday that the mill feed decreased during the third quarter, owing to a shortage of higher-grade stoping areas, which resulted in a larger contribution of lower grade development ore as the primary mill feed.
Development delays and paste plant start-up issues also affected overall stope sequencing, which resulted in the company mining off plan.
The company stated that it was addressing the challenges with the mining contractor and that necessary actions were being taken to ensure adequate staffing.
A paste plant would also be operational by year-end and mine infrastructure to support rock fill had been developed and would mitigate delays in operation of the paste fill plant.
The company is updating its life-of-mine plan and preparing a 2020 budget.
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