Harte Gold Corp.

Harte Gold Corp.

May 31, 2012 07:00 ET

Positive "Preliminary Economic Assessment" Report on Sugar Zone Deposit Completed

TORONTO, ONTARIO--(Marketwire - May 31, 2012) - HARTE GOLD CORP. ("Harte") (TSX:HRT)(FRANKFURT:H4O) is pleased to announce that a positive Preliminary Economic Assessment or "PEA" has been completed and submitted to Harte by its independent engineering consultants; NordPro Mine and Project Management Services Ltd., located in Thunder Bay, Ontario on the Sugar Zone Deposit, controlled 100% by Harte, and located in White River, Ontario.

Highlights: Gold Price Used: US$1490/ounce:

  • 750 tonne per day operation
  • 8.1 gram/tonne mill head grade
  • 94% recovery
  • 66,000 ounces annual production
  • $600/ounce all in production cost, including royalties
  • $108 million Capex using all new equipment, contract mining and 25% contingency
  • 6 year mine life to 400 metres using Alimak and shrinkage mining methods
  • Annual revenue...$98 million
  • EBITDA...$60 million/year
  • pre tax IRR...35%; NPV @ 5% discount = $137,261,000
  • after tax IRR...28%; NPV @ 5% discount = $92,095,000

Harte's Plan

Harte is in the process of permitting the site in order to commence an "Advanced Exploration and Bulk Sampling program" in April, 2013. Details of this program are currently being finalized and will be submitted to the Ministry of Northern Development & Mines for approval. In addition, management of Harte is sourcing equipment, including electricity delivery options, which would dramatically lower the capital requirements and translate into improved IRR's.

"This PEA is an excellent endorsement of the viability of the Sugar Zone Deposit becoming a new Ontario, high grade, gold mine" said Stephen G. Roman, Harte's, President & CEO. "The operating and consumable costs used in the PEA are current and taken from existing mines in the area. With mine and mill optimization, as well as sourcing re-furbished components, we expect to significantly improve the already great economics of this project" said Mr. Roman.

The PEA will be posted on www.SEDAR.com within 45 days as well as on the Company's website www.hartegold.com.

QA / QC Statement

The PEA was prepared in conformance with National Instrument 43-101 by NordPro Mine & Project Management Services Ltd. (NordPro) of Thunder Bay, Ontario. The report was prepared by Brian LeBlanc, P. Eng. of Nordpro and NordPro Associate Malcolm Buck, P. Eng., each a "Qualified Person" under the Instrument and they have supervised the preparation of the information that forms the basis of the written disclosure in this news release.

NordPro utilized the Watts, Griffis and McOuat resource estimate as reported in the "Technical Report and Mineral Resource Estimate and Mineral Resource Estimate Update for the Dayohessarah lake property, Ontario for Harte Gold Corp." dated February 17, 2012. The PEA uses Inferred Resources which are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no certainty that the results predicted by this PEA will be realized. The mineral resources estimate could be materially affected by environmental, geotechnical, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.

About Harte Gold Corp.

Harte Gold Corp. is a Canadian gold exploration company with interests in the Sugar Zone and Stoughton-Abitibi properties located in Ontario, Canada. The Sugar Zone Property is located 60 kilometres east of the Hemlo Gold Camp and holds an NI 43-101 compliant Indicated Resource of 980,900 tonnes, grading 10.13 g/t for 319,280 ounces of contained gold (uncapped) and grading 8.72 g/t Au for 274,970 ounces of contained gold (capped) and an Inferred Resource of 580,500 tonnes, grading 8.36 g/t Au for 155,960 ounces of contained gold (uncapped) and grading 7.03 g/t Au for 131,280 ounces of contained gold (capped). Harte holds a 100% interest in the Sugar Zone Property and also holds the Stoughton-Abitibi property located on and adjacent to the Destor-Porcupine Fault Zone in close proximity to the 2.5 million ounce Holt-Holloway Gold Mine in the Timmins, Ontario Porcupine gold camp.

Common Shares Outstanding: 164,888,114

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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