Artemis Gold’s Blackwater mill bill balloons
Company has raised the cost of its first Blackwater mill expansion in British Columbia to C$120 million.
Artemis Gold has increased the cost estimate for its first expansion of the Blackwater mill in British Columbia to C$120 million, a 20% rise from the originally budgeted C$100 million to C$110 million. The company plans to commence construction on the larger project by the end of the year. The Blackwater expansion, located about 450 km northeast of Vancouver, would increase the mill's processing capacity by a third to 8 million tonnes per year.
Artemis' cost control on the smaller project is crucial for maintaining confidence in its plan to triple the Blackwater's processing rate and increase annual gold output above 500,000 ounces by 2029. The higher Blackwater budget is part of a broader trend of mine-building in central British Columbia, with Centerra Gold and Osisko Development also investing heavily in the region.
Despite the cost increase, the revised budget remains competitive at C$60 per tonne of added annual processing capacity. Artemis expects to start the expanded circuit in the fourth quarter, with most of the production gain expected for the following year. The company anticipates Blackwater to produce more than 300,000 ounces in 2027, aided by the higher processing rate and grades above the mine's reserve average.
Artemis currently holds C$175 million in cash and has an undrawn C$700-million revolving credit line.
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