Artemis Gold Announces Expanded Phase 2 Development at Blackwater Mine

Executive Summary

• Artemis Gold’s board approved an expanded Phase 2 (“EP2”) project valued at C$1.44 billion, increasing processing capacity to 21 Mtpa and targeting >500,000 oz of gold annually for the first ten years.
• EP2 will be funded primarily from operating cash flow; construction is slated to start Q3 2026 with first gold pour expected in Q3 2028.
• The expansion lifts long‑term production guidance (500–525 koz Au/year) and maintains low all‑in sustaining costs of US$800‑1,100 per ounce, delivering an estimated AISC margin of ~US$3,000/oz.

Key Details

• Capital Cost: C$1.44 billion (≈ US$1.07 bn); $110 per tonne of additional throughput.
• Financing: Entirely cash‑flow funded; no equity dilution or external debt disclosed.
• Processing Capacity: 13 Mtpa new plant + 8 Mtpa Phase 1A = 21 Mtpa total (vs. 8 Mtpa after Phase 1A).
• Production Outlook:
• Years 1‑5: 500–525 koz Au/year, 2,000‑2,500 koz AuEq/year.
• Years 6‑10: Same range; silver output 2,000‑2,500 koz/yr.
• Cost Guidance (AISC): US$800‑1,100 per ounce over the expansion period; margin >US$3,000/oz at current spot price (~US$4,200/oz).
• Construction Schedule: Early works begin Jan 2026; major construction Q3 2026–Q3 2028; first gold pour Q3 2028.
• Employment Impact: Peak 1,500 direct construction jobs; post‑completion ~1,200 direct employees/contractors.
• Power Supply Condition: EP2 contingent on confirmed long‑term hydro‑electric supply from BC Hydro (expected early 2026).
• Permitting: Federal & Provincial Environmental Assessment Certificates allow up to 21.9 Mtpa; alignment with Mine Act permit expected 2026.
• Equipment Orders: 18 MW SAG mill and 18 MW ball mill ordered Sep 2025; ball mill already fabricated.
• Future Outlook: Phase 3 (≈25 Mtpa) under review; potential mine‑life extension to 2043+; additional regional exploration ($5 M program started Oct 2025).

Notable Quotes

“EP2 delivers on our long‑term vision… will be built without diluting our equity holders.” – Dale Andres, CEO
“The decision to proceed with EP2 is another major milestone for the Company.” – Jeremy Langford, President