Artemis Gold Provides Update on Phase 1A Expansion
Artemis finalised phase 1A capital 20% above prior guidance, with the project expansion remaining on schedule despite the minor cost increase.
Artemis Gold Inc. (ARTG) reported that the Phase 1A expansion at its Blackwater mine is 57% complete and on track for commissioning in the fourth quarter of 2026. The project will increase nameplate capacity by 33%, rising from 6 million tonnes per annum (Mtpa) to 8 Mtpa. The company disclosed a finalized capital cost of $120 million, which represents $60 per additional annual tonne of processing capacity.
The release also signaled a significant production increase in 2027, with grades expected to remain above reserve grade through 2028 until the EP2 project is commissioned.
Artemis Gold Inc. (ARTG) reported a cost overrun of $20 million to $25 million against a budget of $95 million to $100 million, representing a miss of more than 20% on cost guidance for a key project. The company maintains ample liquidity with $875 million available and strong operating cash flow, meaning the incremental funding requirement is not threatening. The market is already aware of inflationary pressures, and the company had previously signaled that All-In Sustaining Costs (AISC) were trending toward the high end of guidance. On-schedule delivery and a reaffirmed production uplift in 2027 remain positive developments.
Artemis Gold Inc. (ARTG) is a single-asset gold producer operating the 100%-owned Blackwater Mine in central British Columbia, Canada. The mine achieved commercial production in May 2025. Current nameplate throughput is 6 Mtpa, expanding to 8 Mtpa (Phase 1A, Q4 2026) and then to 21 Mtpa (EP2, Q4 2028). Long-term output is targeted at >500,000 oz gold per year for the first 10 years post-EP2. Silver is a significant by-product. The company also holds a large regional exploration land package of ~1,490 km².