HAR: Just raised $14M - Two gold drilling campaigns starting in the coming weeks.

Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 9,702,351 HAR Shares at the time of publishing this article. The Company has been engaged by HAR to share our commentary on the progress of our Investment in HAR over time. This information is general in nature about a speculative investment and does not constitute personal advice. It does not consider your objectives, financial situation, or needs.

We just increased our Position in Haranga Resources (ASX:HAR).

It’s gold, and it’s in the USA.

(two of our favourite macro themes combined)

Plus a “pushed to the side of the plate Senegalese side salad” that recently far exceeded everyone’s expectations... (we’ll explain what on earth this means in a second).

The gold price just hit a new all time high of US$4,180 per ounce.

We took a pretty swing (by our standards) at the HAR placement, which was “heavily oversubscribed” and “cornered by a gold fund”.

(we also went pretty hard in the HAR placement before this one, as we really HAR’s USA gold project)

And now HAR has over $14M to drill two of its gold projects - with programs planned in the US and Senegal this month.

HAR’s USA gold project sits in the richest section of the famous California gold rush “Mother Lode”...

(yep, this location is famous for the 1840s gold rush that basically built California. The “gold Mother lode” is very well known in USA folklore and popular culture - we think US investors will like the HAR story...)

HAR’s project already has an estimated non-JORC 286,000 oz non-JORC gold resource at 9.28g/t (very high grade gold).

...and data from 2008 showing it might be up to ~682,000 ounces. (Source)

And importantly HAR also owns a fully built and PERMITTED gold processing plant - not easy to come by.

(we saw it with our own eyes a few months back and it was very impressive and we can see why it would cost $90M+ to replace - see our site visit note here)

HAR expects to be drilling on its US project this month.

(Source)

So if the gold price keeps running and HAR delivers some drilling success they can relatively quickly mine, process and sell the gold while prices are at or near all time highs.

HAR has the cash runway now, after just raising $14M at 14c in an oversubscribed capital raise cornered by a gold fund run by Collins Street Asset Management.

5 weeks ago: HAR got VERY lucky on its "Senegal side salad”.

The kicker for HAR is a side gold project they own that we didn’t really care about... until a few weeks ago.

HAR also owns a gold exploration project in Senegal, Africa, which they previously had a small spend commitment to do some shallow drilling.

Up until a few weeks back, we didn't really care about this project... but in typical “small cap resource exploration” fashion, sometimes it’s the projects that you have the lowest attention/focus/hopes/dreams for that end up coming in.

(a watched pot never boils and all that)

HAR delivered some excellent gold hits on this project a few weeks ago - we liked it, the market liked it, and HAR has decided the results are so good they are now going to spend some more money.

(Source)

(they can do this now HAR has an extra $14M to progress both its projects)

The ultimate win for HAR on the surprise Senegal gold project would be a Predictive Discovery style major gold discovery - anyone who followed that stock will remember they had a similar story arc.

No guarantees of course - it’s a ‘dream scenario’ for a reason - hard to come true like this...

Predictive drilled a few aircore holes with low expectations, hit high grade gold, followed it up with RC drilling and ~5 years later it’s capped at ~$1.6BN.

(Source)

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

HAR has done the first two steps and will be doing another 3,000m of shallow aircore drilling in Senegal later this month (before the deeper drilling we really want to see).

Has HAR “accidentally” made a big discovery in Senegal?

Back in early September, HAR ran a shallow aircore drill program and hit some very decent drill results.

The first batch of assays were processed in 4m intervals.

HAR then re-assayed the same holes in 1m intervals (capturing more of the drillcore) and the results actually improved...

For example, hole #8 went from 20m at 6g/t gold to 20m at 6.54g/t gold.

HAR’s share price really started moving on that second announcement:

(Source)

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

We were pretty surprised by that first batch of results (as we weren't really expecting anything to come from the drill program).

HAR has already locked in plans for a follow up ~3,000m aircore drill program to see if the gold extends over a larger area near surface:

(Source)

And all of the drilling to date is shallow aircore holes - the deepest hole actually ended in mineralisation and there hasn’t been any holes drilled at depth yet.

(Source)

We are looking forward to seeing HAR come back in with an RC/Diamond rig and drill deep holes to really see what’s there.

We will know when that happens if HAR has accidentally stumbled on a big discovery on what was a non-core asset only a few months ago.

Right now, we are conscious of it still being very early days on the project.

HAR also has a bunch of high grade gold soil anomalies trending to the southwest AND a big new batch of soil sampling with assays pending to the southeast:

(Source)

These early results could be the makings of a big discovery - or it could be nothing.

What we do know is that often big discoveries are made when no one expects anything to happen (that’s exploration for you).

We still remember when one of our best ever Investments Latin Resources announced spodumene bearing pegmatites back in 2022, and no one thought it would lead to a discovery.

Then a few months later when the first deep holes were drilled, LRS had made a giant new lithium discovery.

(past performance is not an indicator of future performance.)

In gold, the same thing happened to Predictive Discovery (ASX: PDI).

Anyone who followed that story will remember when Predictive hit gold in shallow aircore holes and the market did nothing to its share price.

Then when the deeper holes came back with gold and a discovery was declared, Predictive's share price started running.

Predictive is the most obvious comparable success story to what a big win for HAR could look like here.

Predictive when the aircore results came out had a share price of 0.5c, today it’s capped at $1.5BN and is trading at ~61c per share.

(Source)

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

HAR’s project sits in an area with some big operating mines including projects owned by $16BN Endeavour Mining and $2.5BN Resolute Mining.

(The region has a few other gold discoveries too, so it's not in the middle of nowhere either).

So a big discovery from HAR here could very easily bring with it corporate attention (if the early results haven’t already).

(Source)

Coming back to HAR’s US asset... how deep does the gold go?

Ok, finally - let’s talk about HAR’s USA project again.

The main reason we are in HAR is for the USA gold project which has:

• A 100% owned built and permitted 350,000 tpa gold processing plant,
• An 880m decline (the tunnel that goes underground to get to the gold),
• Offices and a workshop,
• All up, $90M of sunk capital by previous owners to build it all.

(Source - HAR Presentation)

HAR’s project already has an estimated 286,000 oz non-JORC gold resource at 9.28g/t - with 2008 data showing it could, as it stands, be up to ~682,000 ounces.

(thats without doing any additional drilling)

(Source - non-JORC resource from 2008)

Taking a look at a cross section above you can see (if you squint) all the old mines in the area where there has been ~7.7 million ounces of historic gold production.

HAR holds all of the ground in the green...

Some of those old mines in the region were mined down to ~1.7km depths.

The area HAR will be drilling first hasn’t been tested below ~150m depths.

(Source)

HAR is about to start drilling its US project - into a gold price that is a lot more receptive to rewarding good drilling results:

(Source)

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

HAR’s drilling will also come as its Californian gold peer Dateline Resources’ keeps hitting new all time highs...

Dateline has been in the media for its rare earth potential but its Colosseum project in California is actually a primary gold project.

Dateline’s project has a 1.1M ounce gold resource estimate and the company just started a Bankable Feasibility Study on the project. (Source)

(Remember HAR thinks it can get to ~682,000 ounces based on 2008 data alone)

Dateline’s share price is up ~200x from its 12-month lows...

(Source)

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

Post-drilling IF HAR can bring its JORC resource estimate up to that ~1M ounce mark then there should be no reason why the market can’t start drawing comparisons between HAR and Dateline.

(no guarantees of course)

Especially given HAR’s project already has fully permitted processing infrastructure in place, that it can get into production in “LESS THAN 12 months”:

See that presentation on the permitting status of the project here.

Dateline is currently capped at $1.6BN.

Post today’s capital raise, HAR will be capped at $55M.

Ultimately, in the short term we think progress on the company’s gold asset will drive a re-rate in its market cap, as per our Big Bet as follows:

Our HAR Big Bet:

“HAR re-rates to a market cap greater than $200M by making new gold discoveries in California and progressing towards production or is acquired at a multiple of our initial entry price”

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is no guarantee that our Big Bet will ever come true. There is a lot of work to be done, many risks involved, including development risk, country risk and commodity price risk - just some of which we list in our HAR Investment Memo.

Success will require a significant amount of luck. Past performance is not an indicator of future performance.

What’s next for HAR?

Drilling on HAR’s US gold project 🔄

First we need to see the dewatering process get completed.

HAR in its most recent update said “Dewatering of the Decline is progressing at maximum allowable rates”.

(Source)

Once HAR is able to access its underground decline, it will be all about drilling.

HAR expects drilling to start this month and a maiden JORC resource estimate to be announced before the end of the year. (Source)

Drilling on HAR’s gold project in Senegal 🔄

HAR’s plan is to drill ~3,000m aircore holes in Senegal in late October.

The main aim for the upcoming drill program is to test for extensions to what's been found already.

(Source)

We also note that the area HAR is drilling is still just a tiny part of its project... so it's still very early days, and it's impossible to know how big what HAR has on this project is:

(Source)

What are the risks?

Given HAR is yet to start drilling on its two projects yet, the key risk in the short term is “commodity price risk”.

HAR is very exposed to the gold price and general market sentiment for gold stocks.

If the gold price started to fall and sentiment turned negative then HAR’s share price could be impacted negatively.

Between now and drilling starting, that is the key risk for HAR’s share price:

Commodity Price Risk

The performance of commodity stocks are often closely linked to the value of the underlying commodities they are seeking to extract. Should the gold price fall, this could hurt the HAR share price.

Source: “What could go wrong” - HAR Investment Memo 25 June 2025.

Other risks

Like any stock market investment, investing in HAR carries a multitude of risks which may affect the value of the company, some of which may not be foreseeable (this is the nature of risks).

Here we aim to identify a few more risks.

HAR’s US project is still at the exploration and early-development stage. It is possible that drilling fails to convert the existing non-JORC resource into a JORC-compliant resource of economic significance.

The company is also exposed to fluctuations in the gold price. A sustained downturn could impact the perceived value of both its US and Senegal assets, and limit HAR’s ability to secure funding on favourable terms.

As a small cap explorer, HAR remains highly reliant on capital markets to fund exploration and development. Any capital raising may dilute existing shareholders, particularly if market conditions weaken.

There are also permitting and development risks. While HAR’s US project has significant sunk capital and existing permits in place, additional mining-related permits are still required, and any delays could affect timelines.

In Senegal, political, regulatory and operating risks are higher compared to more established jurisdictions, and may impact exploration or potential future development.

Finally, as with all speculative explorers, the current share price may already factor in future upside, particularly in a rising gold market, which increases the risk of sharp volatility around drilling results.

Investors should carefully consider these risks and seek professional advice tailored to their personal circumstances before investing.

Our HAR Investment Memo:

Our Investment Memo provides a short, high-level summary of our reasons for Investing.

We use this memo to track the progress of all our Investments over time.

Click here to read our HAR Investment Memo where you will find:

• What does HAR do?
• The macro theme for HAR
• Our HAR Big Bet
• What we want to see HAR achieve
• Why we are Invested in HAR
• The key risks to our Investment Thesis
• Our Investment Plan