Artemis to increase Blackwater plant capacity

Executive Summary

• Artemis Gold announced a 33 % increase in Blackwater Mine Phase 1 processing plant capacity (from 6 Mt/yr to 8 Mt/yr) slated for completion by Q4 2026, with an estimated capital cost of $100‑$110 million.
• The expansion (Phase 1A) will be funded entirely from operating cash flow and is projected to have a payback period of less than six months, providing immediate free‑cash‑flow upside and derisking the larger Phase 2 expansion.
• Long‑lead equipment for Phase 2 (18 MW SAG mill and 18 MW ball mill) has already been ordered/fabricated, significantly de‑risking the schedule for a planned Phase 2 decision in Q4 2025.

Key Details

• Capacity Increase: +33 % (6 Mt → 8 Mt per year).
• Capital Estimate: $100 M–$110 M total; $50–$55 per additional annual tonne of capacity – described as industry‑low capital intensity.
• Funding: Entirely from operating cash flows; $20 M–$30 M of the spend will occur in 2026, remainder in earlier phases.
• Payback: Expected < six months from commissioning.
• Construction Status (Phase 1A): Foundations excavated; on‑site concrete batch plant being commissioned; vertical mill ordered for primary grinding.
• Equipment Ordered for Phase 2: Metso 18 MW SAG mill and 18 MW ball mill (ball mill fully fabricated due to another customer’s cancellation).
• Phase 1A Enhancements Include:
• 3.5‑MW vertical mill addition, cyclone cluster modifications.
• Expanded leach circuit – one new aeration tank & one pre‑leach tank.
• Oxygen supply upgrades & addition of oxygen shear reactors.
• Elution circuit upgrade for higher carbon‑stripping capacity.
• Reagent mixing/delivery optimization.
• Two new water storage ponds (fresh & recycled).
• Crushed ore stockpile cover to improve winter ops and reduce dust.
• Future Production Outlook: Phase 2 has potential to lift production to >500,000 gold‑equivalent ounces per year; board approval targeted before year‑end 2025.
• Operational Targets: Throughput to reach 10 % above nameplate capacity by Q4 2025; Phase 1A fully commissioned and operational by end of 2026.

Notable Quotes

• Dale Andres, CEO: “Phase 1A will deliver a 33‑per‑cent increase in plant capacity at an industry‑leading capital intensity… funded out of operating cash flows with a payback period expected to be less than six months.”
• Jeremy Langford, President: “Ordering long‑lead‑time items for Phase 2 now secures critical equipment and significantly derisks the timeline to commence construction.”