Harte Gold says new zone near Hemlo camp has large tonnage potential

Harte Gold Corp. [HRT-TSX] on Monday January 8 released a project update based on recent drilling at its flagship Sugar Zone property located 80 km east of the Hemlo Gold Camp in northern Ontario.

The move comes after the company completed 138,000 metres of drilling in 2017, work that was primarily targeting the Sugar and Middle zones to define and upgrade the mineralized envelope.

Harte is focused on exploration and development of the 100%-owned Sugar Zone property where it has completed a 70,000-tonne advanced exploration bulk sample and is permitting commercial production for the Sugar Zone Deposit.

A preliminary economic assessment dated July 12, 2012, contains an NI 43-101 compliant indicated resource of 980,000 tonnes grading 10.13 g/t gold, or 319,280 ounces of contained gold, and an inferred resource of 580,500 tonnes, grading 8.36 g/t gold or 155,960 ounces of contained gold.

The company now says P&E Mining Consultants has been engaged to prepare a new resource estimate. Based on the new estimate, the company said it will also complete a new preliminary economic assessment as well as a technical report outlining the mine plan and economics. Construction continues at the site with a mill building scheduled for completion by the end of January.

Harte acquired the Sugar Zone property in May 2010 from Corona Gold Corp. [CRG-TSX], a company headed by mine financier Ned Goodman. At the time, Corona received cash payments, plus shares equal to a 9.9% stake in Harte.

Some of the exploration since then has focused on Hemlo-style mineralization to the east of the Sugar Zone. This is a reference to the famous Hemlo gold discoveries of the early 1980s, which were rich enough to support three mines – Williams, Golden Giant, and David Bell.

On Monday, the company announced a new gold discovery, the K7 Zone, where an initial drill hole returned a 5-metre intersection grading up to 1.0 g/t gold within an altered feldspar porphyry 200 metres below the surface.

“This host rock is different from the classic Sugar Zone quartz shear zone and the company believes it has greater potential for large tonnages,” Harte said.

The K7 zone is located approximately 10 km south of the Sugar Zone deposit and on strike with the mineralized trend that includes the Wolf, Middle, Sugar and Lynx zones. The company said an 80,000-metre drill program  is planned for 2018 utilizing six to eight drill rigs to further define new discoveries at the Lynx, Moose, K7 and Wolf zones, and test new target areas, such as the Eagle zones.

Harte shares eased 5.88% or $0.03 to 48 cents on Monday. The 52-week range is 87 cents and 30 cents.