Artemis Gold (TSXV: ARTG) says construction of the Blackwater gold mine 160 km southwest of Prince George, British Columbia is progressing. The first phase of the project is fully funded, within guidance for the initial capex spend, and on schedule for the first gold pour in the second half of 2024.
At the end of last year, overall construction was 59% complete, and about C$389 million of the initial capital expenditures of C$730 million to C$750 million had been spent. By the end of 2023, Artemis had entered into contracts for C$615 million, or 84% of the lower-end of the capex range.
Roads for the first phase of operation are complete, the company said, adding that work on the water management facilities and transmission line continue. At the plant site, work is ongoing on the foundation, reagents building, ball mill pedestals, carbon-in-leach, and detox tank erection, three stage crushing, and reclaim tunnel civil works. Erection of the mill building and installation of the ball mill have also begun.
The construction fleet now includes both 60- and 100-tonne rigid frame trucks and 150-tonne excavators. Five 240-tonne rigid frame haul trucks have been delivered, and four of them are almost assembled. Additional vehicles for the fleet are scheduled to arrive in the first half of this year, and their assembly will be completed before the beginning of pre-stripping.
Also at the end of last December, the Sedgman EPC contract work was 75% complete overall, with the engineering, design and procurement substantially finished. Mechanical equipment including the three crushers, dry screens, and ball mill are on site and in various stages of assembly. The last quarter last year also marked the arrive onsite of the first delivery of the 225-kV transmission line conductor and poles.
Artemis has put in place a modest gold hedging program. The forward sales agreement calls for the company to deliver 190,000 oz. of gold between March 2024 and December 2027 at a weighted average price of C$2,815 ($2,094) per oz. The company also executed zero-cost collars associated with 30,000 oz. of gold with settlement dates from December 2024 to February 2025 with a put price of C$2,600 ($1,934) per oz. and a call price of C$3,353 ($2,494) per ounce.
With Phase 1 fully funded and more than half complete, Artemis has begun a study to advance the Phase 2 expansion. The results of the study are to be released by the end of the current quarter.
