Sugar Zone Mineralization Successfully Expanded by Harte Gold

Harte Gold Corp. recently provided an operational and corporate update about its mining project.

Highlights

• The following was obtained from near mine exploration:
  • Sugar Zone drilling has mineralization extending 200 m to the south and remains open along strike. Hole SZ-19-271 returned 27.6 g/t Au over 1.68 m.
  • In the parallel Upper Zone area, mineralization along strike and down dip has been extended. The expansion of this area was identified following Sugar Zone ramp development and is adding possibly mineable resources.
• In Q1, the Company produced 5,476 oz. of gold, and for April and May, it produced 5,438 oz., for a total to the end of May of 10,914 oz. Final production data for June will soon be available.
• Mill operations are stabilized and have shown the capacity to work at 800 tpd while keeping up with planned recoveries.
• Ramp up of underground operations is taking place. Mine production is presently coming from sill development and stopes in the Sugar Zone south area.
  • Surface stockpiles were drawn as an add-on underground mine production in May and June.
  • Development of the Sugar Zone north limb is underway, and stope production is anticipated by September.
• When the Sugar Zone north and south limbs are both working, the Company hopes to supply the mill exclusively from run-of-mine (ROM) production.
  • The Company is on track to realize this by Q4 2019, in keeping with the Feasibility Study plan.
• The Company reminds shareholders of the forthcoming Annual and Special Meeting of shareholders, slated for July 4^th, 2019 at 10:30 am Eastern Time.

Our next milestones at the Sugar Zone Mine are to maximize throughput and supply the mill with consistent, higher grade, run-of-mine ore. Our target is to achieve this by the fourth quarter of 2019, consistent with our Feasibility Plan.

Stephen G. Roman, President and CEO, Harte Gold

Mr. Roman added, “Mill throughput continues to perform as expected and 800 tpd has been achieved. Our focus continues to be on the ramp up of underground operations. We are reinvesting cash flow from gold production into underground development and will continue to do so for the remainder of this year.”

Operations

Mining

• Stope ore was mined at the 140 and 155 levels of the Sugar Zone south area. Mined stopes are coming out as scheduled with marginal external dilution.
• Ore production was lesser than target for the months of May and June because of lack of stope availability and ventilation development, decreasing day-to-day performance.
• Ventilation work was recently finished and mine performance will progress positively as post-blast smoke clearing will be more efficient.
• Development at the Sugar Zone north limb is on-going. Stope production from this area is anticipated to start in September to back the continued enhancement of mine production.

Processing

• Mill throughput surpassed the plan for the second quarter of 2019.
• Mine production was supplemented with surface stockpiles for May and June to match throughput guidance.
• Remaining surface stockpiles are projected to contain nearly 6,000 tons averaging 2.5 g/t.
• Higher recoveries are projected as higher grade material is processed via the mill.

Near Mine Exploration

Exploration conducted along the strike and to the south continues to intersect high-grade mineralization. The Company has been successful in expanding mineralization by 200 m to the south of the Sugar Zone Mine and will pursue drilling in the area to expand resources.