Toronto’s Harte Gold has hired Sudbury’s Technica Mining to mine a 70,000-tonne high-grade bulk sample and start construction of surface infrastructure at its Sugar Zone Deposit, near Hemlo in northeastern Ontario.
The $20-million contract includes $5 million in the form of Harte Gold common shares at $0.15 a share.
Technica will handle the surface work, will collar the portal by the end of June, and immediately start underground development and mining work.
The Sugar Zone Property is 60 kilometres east of the Hemlo gold mines and about 25 km north of White River off the Trans-Canada Highway.
The bulk sample located is close to surface and the entire process is expected to be finished by the end of next year. The mining company will be milling the bulk sample beginning in January. Milling options are under review, including toll milling at nearby mills.
Harte Gold president-CEO Stephen Roman called Technica a “highly regarded and competent group” with a good track record and safety performance in provided contracting to the largest miners in the Sudbury basin.
"We are equally pleased to make this announcement in working with the exceptional team at Harte Gold,” said Technica Group president-CEO Mario Grossi. “It is in line with our approach to diversify and expand our portfolio of services to the mining industry. We are eager to expand beyond contract mining services and now offer unique financing solutions for our clients. It is projects like Harte's Sugar Zone that makes this offering possible."
The agreement is subject to the parties entering into a definitive agreement and regulatory approval.
