Published: January 6, 2025 | Share This

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Artemis Gold has encountered unexpected setbacks in the commissioning of its Blackwater Mine, leading to a delay in the anticipated first gold pour.

Originally scheduled for the Q4 of 2024, the company said on Tuesday that the target has been pushed off to January 2025 due to several operational and environmental challenges.

The Blackwater Mine is located in central British Columbia. The company has been building it with the idea of making it one of Canada’s largest gold mines. However, it’s run into some snags in the process.

First and foremost among the snags is that over the past 17 months, two separate wildfires forced workers to halt construction for approximately one and a half months during the peak construction period. These interruptions increased fixed overhead costs, delayed cash flows, and affected the project’s timeline and budget.

Unexpected delays in configuring and communicating within the process control network slowed progress at the mine. Constrained vendor availability during the holiday season compounded the issue, further postponing the final commissioning of the wet plant. These challenges required schedule adjustments, with ore processing through the ball mill now set to begin in January 2025.

The company increased its projected capital expenditure due to the delays. It updated its initial capital guidance, estimating the cost for the first gold pour at $540 million (CAD$780 million) to $554 million (CAD$800 million), an increase of approximately 7 percent from the previously guided figures.

However, despite these setbacks, the company has made significant progress in other areas.

ARTEMIS TAKES STEPS TO MINIMIZE ENVIRONMENTAL IMPACT

Some of the company’s progress includes the completion of the 135-kilometer long 225kV transmission line from the Blackwater Mine to BC Hydro’s Glenannan substation. This provides renewable grid power to the site. The tailings storage facility is also nearing completion prior to the plant’s ore commissioning.

Artemis Gold has been actively managing its relationship with local communities and environmental concerns, especially in light of the wildfire disruptions. The company has taken steps to ensure safety and minimize environmental impact, including the proactive evacuation of non-essential personnel during wildfire events.

The company remains committed to the Blackwater project, viewing it as a key asset in their portfolio. With construction over 95 percent complete by late September 2024, and with the project fully funded, the focus is now on overcoming the remaining hurdles to achieve operational status. The company’s management has been working on cost-saving measures and schedule acceleration initiatives to mitigate the impact of these delays, aiming for a swift transition into production.

Source: Mugglehead Magazine

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.

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