Harte Gold has announced that commercial production has been achieved at the Sugar Zone Mine, effective January 1, 2019. Following a successful commissioning period, the Sugar Zone Mill is operating consistently at the permitted 575 t/d. Start-up, commissioning and commercial production was achieved within a three month period since receipt of commercial production permits. The mill averaged a 90.8% gold recovery rate for December, which is expected to improve during the transition to commercial operation.
A 2019 budget and life of mine plan is underway, expected to improve overall economics. This information will form the basis of a NI 43-101 Feasibility Study targeted for Q1 2019. Stephen G. Roman, President and CEO of Harte Gold, stated: “Since start-up of the mill, our focus has been on reaching commercial production in an efficient and cost effective manner. I believe our team has done a remarkable job getting to capacity with no significant operational issues. We are now progressing the permit to increase throughput to 800 t/d.”
Jeff Hanson, Mill Superintendent of Harte Gold, stated: “The mill is currently at steady state and our focus will now shift to improving recoveries.” For the month of December, the mill processed 16,400 t over a 29 day period. During commissioning, mill feed was a combination of material from the surface stockpile, development material and stope production. As underground mining continues to accelerate, a majority of the mill feed will be supplied by higher grade stope material. The surface stockpiles will remain a source of auxiliary supply. The stockpiles were sampled in December and are estimated to contain 19,470 t of material at an average grade of 5.08 g/t.
First blasts between the 140 and 155 levels were successful and downhole drilling and blasting is confirming planned dilution control. The company is optimising its mine plan with the intent to improve grade, particularly in the early years of the mine life. The company will incorporate these optimisations into an updated life-of -mine plan which will form the basis of a Feasibility Study expected in the first quarter of 2019.
Infill and step-out drilling is now complete and an updated NI 43-101 Mineral Resource Estimate is underway. Drilling for 2018 focused on the upgrade of Inferred Mineral Resources to Indicated and the expansion of Inferred Mineral Resources boundary along strike and at depth across the Sugar, Middle and Wolf zones. The company expects to deliver an updated Mineral Resource Estimate in early 2019.
