Published: February 1, 2024 |

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Artemis Gold has released an update on construction progress at the Blackwater Mine in central British Columbia. The project remains fully funded, within the guidance for initial capital expenditure, and on schedule for first gold pour in H2 2024.

At December 31, 2023, overall construction was 59 percent complete, and approximately $291 million (C$389 million) of the guided initial capital expenditure of $546 to $561 million (C$730 to C$750 million) had been spent. The lag between the spend and percentage of completion is as planned and consistent with a typical project S-curve.

By the end of Q4 2023, the company had entered into contractual commitments for $460 million (C$615 million) (or 84 percent of the lower end of the guided initial capital expenditure). The majority of the balance of uncommitted expenditures for the guided initial capital relate to owners cost and earthworks associated with mining pre-strip and construction of the tailings storage facility (TSF) and other civil structures.

“We remain focused on a disciplined approach to development and remain on track for the first gold pour in H2 2024,” said Artemis Gold Chairman and CEO Steven Dean.

“The fourth quarter was highlighted by our workforce eclipsing one million hours worked without an LTI — an important achievement that reflects the hard work and commitment of our dedicated workforce. As we enter Q1 2024, our short-term priorities will be to further progress the TSF infrastructure areas, advance the construction of the 225Kv transmission line and complete all essential concrete works within the process facility,” said Artemis Gold President and COO Jeremy Langford.

“In parallel with this the teams will look to progress the structural, mechanical, platework, piping and electrical construction activities within the process plant and electrical substation areas. Operations team members are scheduled to commence pre-production planning, which will prepare the teams for initial mining operations and plant commissioning,” added Langford.

CONSTRUCTION UPDATE

Earthworks continued in priority infrastructure areas, with approximately 640 hectares logged and cleared. All access roads needed for phase 1 construction are now operable. Construction of the site water management facilities, including the water management pond, and Davidson Creek diversion, is well advanced. Work associated with the transmission line is progressing in accordance with the project schedule.

PLANT SITE

Process plant construction progressed well on a number of fronts, including the mill building foundation preparation, reagents building foundations, ball mill pedestals, carbon in leach (CIL) and detox tank erection, advancement of the primary, secondary, and tertiary crushers structures, and the reclaim tunnel civil works. Hydro testing within the CIL tank area commenced.

Construction of the run-of-mine (ROM) wall and the initial ROM dump slab earthworks have been completed. The focus has now moved to concrete formwork to allow for the installation of the primary crusher ROM slab and crusher vault. Steel structures for the secondary and tertiary crusher and screening station have been advanced and installation of the crushing mechanical packages commenced in Q4. The erection of the mill building and installation of the ball mill also commenced in late Q4.

HEAVY EQUIPMENT

The construction fleet now includes 60 and 100 tonne rigid frame haul trucks and 150 tonne excavators, providing more material movement capability to key areas. Assembly and commissioning of the owner’s mining fleet is well advanced, including two 400 tonne hydraulic backhoe excavators. Five 240 tonne rigid frame haul trucks have been delivered to site, four of which have been substantially assembled. The remainder of the fleet to support operations will arrive predominately across the first half of 2024. Fleet assembly is expected to be completed well before the commencement of pre-stripping, and equipment will be made available to support earthworks if needed.

ENGINEERING AND PROCUREMENT

At the end of December 2023, the Sedgman EPC contract work was 75 percent complete overall, with engineering, design and procurement substantially complete. Key mechanical equipment packages, including the primary, secondary and tertiary crushers, conveyor assemblies, dry screens, and ball mill are all on site and are in various stages of installation. The electrical machinery control centers are also in various stages of delivery and installation.

Key mining-related contracts have been executed with detailed mobilization plans for production drilling services well advanced. In addition, equipment supply contracts have been awarded for the oxygen plant and water treatment plant. Q4 also marked the arrival onsite of the first delivery of the 225kV transmission line conductor and poles.

PERSONNEL

The company’s staffing numbers surpassed 320 employees in Q4 2023, with approximately 20 percent of the team female and more than 30 percent identifying as Indigenous. Approximately 50 percent of the development team is from the local region and more than 80 percent are B.C. residents. The total workforce at the Blackwater Mine, including staff and contractors, surpassed 550 towards the end of December.

Artemis Gold is a well-financed, growth-oriented gold development company with a strong financial capacity aimed at creating shareholder value through the identification, acquisition, and development of gold properties in mining-friendly jurisdictions. The company’s current focus is construction of the Blackwater Mine project in central British Columbia. The project is one of the largest capital investments in the Bulkley-Nechako, Fraser-Fort George and Cariboo regions of B.C. in the last decade. The first pour of gold and silver from Blackwater Mine is expected H2 2024 and the mine is expected to be in production for a minimum of 22 years.

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