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"We are disappointed with the historic delays to permitting"

Sugar Zone hits sour note

Staff reporter

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The company had said back in May that it hoped to be in production in July, when it announced a positive PEA and a US$70 million debt financing package with Sprott and Appian to complete project construction. 

In an update yesterday, Harte said of the many permits needed for operation, four remained outstanding.

"While we are disappointed with the historic delays to permitting, we have made adjustments to the construction and mining schedules that allow us to continue towards our stated commercial production target [of Q4 2018]," president and CEO Stephen Roman said.

"In 2016, the company made a decision to start construction based on the permits received, in an effort to streamline multiple work streams and fast-track to commercial production.

"At that time, the Crown indicated full permits would be issued in June 2018.

"We are disappointed the target date has moved, however, we have the full support of our proximal First Nation, Pic Mobert, the town of White River and all communities surrounding the Sugar Zone Mine."

He said Harte would continue to work closely with the respective ministries to complete the permitting process, which was now expected to conclude in September.

The company said surface construction of the crushing spread and mill complex was complete and five levels were prepared for initial mining once final permits were received.

The mine is expected to produce an annual 80,700 ounces of gold at an all-in sustaining cost of $708/oz over 11 years.

Its shares, which were trading at C64c a year ago, remained at a 52-week low yesterday of 32.5c.

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