Artemis Gold raises Blackwater mill budget amid capacity boost

Artemis Gold has increased the estimated expenditure required to complete its initial expansion at the Blackwater mine in British Columbia from a previous range of C$100 million to C$110 million. The revised figure stands at C$120 million, representing an increase of up to 20 per cent against earlier budgets. Despite this rise in capital requirements for the first phase of development, the company maintains its intention to commence operations with the enlarged facility by the end of this year.

The project site is located approximately 450 kilometres northeast of Vancouver and was reported as being 57 per cent complete at the close of business on June 30. The scope of work has been expanded beyond initial projections, incorporating additional spare equipment designed to increase annual processing capacity by one third to eight million tonnes. This adjustment in budgeting occurs within a broader context where Artemis is planning total growth capital between C$670 million and C$745 million for 2026, sourced primarily from operating cash flows.

Analysts have noted that the overrun on this initial project remains modest when viewed against the backdrop of a planned second expansion valued at C$1.44 billion. Successful cost control on the smaller job is seen as critical to maintaining confidence in Artemis long-term strategy to triple processing rates and push annual gold output above 500,000 ounces by 2029. The updated budget translates to a cost of C$60 per tonne for added capacity, which remains competitive compared with previous estimates ranging between C$50 and C$55.

Construction progress continues across the site as crews have completed civil works associated with a new vertical mill and advanced structural steel erection. Mill components are arriving while workers have erected pre-aeration tanks and finished foundations for oxygen equipment. A new cyclone cluster is currently being shipped to the location, though mechanical installation and connections to the operating plant now dictate the schedule.

The mine has demonstrated strong performance recently after pouring its first gold in January of last year and reaching commercial production by May. Production figures improved significantly following an unplanned shutdown caused by a failed ball mill gearbox in March. The facility recorded record output during the second quarter, contributing to a total first-half production of 135,986 ounces.

Artemis has retained its full-year forecast for gold production between 265,000 and 290,000 ounces despite recent operational challenges. The company holds C$175 million in cash alongside an undrawn revolving credit line of C$700 million as of March 31. These financial resources provide sufficient room to absorb the higher costs associated with the first expansion without necessitating changes to the project timeline.

Further development plans include a separate plant capable of processing 13 million tonnes annually, which would be situated beside the existing mill. This addition aims to lift total designed capacity to 21 million tonnes by late 2028. The larger operation is expected to generate more than half a million ounces annually during its first decade of production.

The initial resource estimate for the Bear deposit establishes it as one of the largest in the state, positioning Blackwater among Canada’s premier gold mining assets once fully developed.