Artemis Gold Raises Blackwater Mill Expansion Cost to C$120 Million

Artemis Gold increased the cost of its first Blackwater mill expansion in British Columbia to C$120 million ($85.3 million). This marks an increase of up to 20%. The company still plans to start the larger plant by year-end.

Artemis had initially budgeted C$100 million to C$110 million for the project. The higher cost covers firming the scope and adding spare equipment. This will lift designed processing capacity by one-third, to 8 million tonnes per year. Work at the site, located 450 km northeast of Vancouver, was 57% complete by June 30.

Haywood Securities analyst Pierre Vaillancourt stated the additional capital is not material. He noted it is modest against Artemis’ planned C$1.44-billion second expansion. That larger project aims to more than triple Blackwater’s processing rate and boost annual gold output above 500,000 ounces by 2029.

Blackwater produced a record 74,063 ounces in the second quarter, a 20% increase from the first quarter. First-half output reached 135,986 ounces. Artemis maintained its full-year forecast of 265,000 to 290,000 ounces. The company expects to start the expanded circuit in the fourth quarter, with most production gains expected next year.