Artemis Gold Announces Expanded Phase 2 Development at Blackwater Mine
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December 15, 2025 TSXV: ARTG
PRESS RELEASE
Artemis Gold Announces Expanded Phase 2 Development at Blackwater Mine
• Capital-efficient, $1.44 billion expanded Phase 2 (“EP2”) development of processing
capacity to 21 Mtpa expected to be funded from operating cash flow
• Over 500,000 ounces of annual gold production expected for first 10 full years,
transforming Blackwater into one of the three largest single gold mines in Canada
(all amounts in Canadian dollars unless otherwise stated)
Vancouver, British Columbia – Artemis Gold Inc. (TSX-V: ARTG) (“Artemis Gold” or the “Company”)
announces board approval for an expanded Phase 2 (“EP2”) development of the Blackwater Mine located
in central British Columbia. EP2 represents a significant addition to processing plant capacity from the
previously announced Phase 1A project, which is currently in construction, growing from an expected 8
million tonnes per annum (“Mtpa”) before the end of 2026 to 21 Mtpa before the end of 2028. Once EP2
is in production, the Blackwater Mine is expected to produce an average of 500,000 to 525,000 ounces
of gold for the first 10 full years. The EP2 investment decision is conditional upon receipt of formal
confirmation of adequate hydro-electricity supply from BC Hydro, expected in early 2026.
The Company estimates that EP2 will be completed at a capital cost of $1.4 4 billion which compares
favourably with prior expansion study estimates and industry benchmarks on a per tonne of throughput
capacity basis (EP2 capital intensity $110 per tonne of additional annual throughput). EP2 is expected to
be funded primarily from operating cash flows and is supported by the Company’s strengthened balance
sheet which provides financial flexibility to fund growth.
The EP2 project is consistent with the staged development strategy and plan for the Blackwater Mine as
contemplated in the current technical report entitled “Blackwater Gold Mine, British Columbia, NI 43-101
Technical Report on 2024 Expansion Study ” with an effective date of February 21, 2024 (the “2024
Expansion Study ”). The strong gold price environment and the previously announced Phase 1A
expansion have allowed the Company to optimize EP2 at a larger scale compared to the previous Phase
2 expansion plan in the 2024 Expansion Study. EP2 is based on the Blackwater Mine’s existing Proven
and Probable Mineral Reserves as outlined in the 2024 Expansion Study and no changes have been
made to the Mineral Reserve and Mineral Resource estimates.
EP2 increases gold production to over 500,000 ounces per year and economies of scale provide for lower
unit operating costs, which will cement the Blackwater Mine’s position as one of the lowest-cost and
highest-margin gold operations globally and transforms the mine into one of the three largest single gold
mines in Canada. All-in sustaining costs1 (“AISC”) are expected to be in the range of US$800 to US$1,100
per ounce of gold sold in the next 10 years. At current spot gold prices of approximately US$4,200 per
ounce, this translates into an AISC margin1 of over US$3,000 per ounce of gold sold, or approximately
75% margin on revenue.
Early works for EP2 are set to commence in January 2026, with major works construction scheduled to
begin in Q3 2026 and continue for approximately two years. At peak construction, EP2 is expected to
1 Refer to Non-IFRS Measures
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generate 1,500 direct construction jobs, plus additional indirect jobs and indirect and induced economic
activity. This is in addition to the approximately 900 contractors and direct employees currently working
at the Blackwater Mine to operate Phase 1. Once EP2 is completed, the Blackwater Mine is expected to
employ approximately 1,200 direct employees and contractors.
Artemis Gold CEO Dale Andres commented: “The Blackwater Mine is a world-class, large-scale asset in
a tier-one mining jurisdiction that is delivering low-cost production and strong cash flows. Our consistent
long-term vision for the Blackwater Mine has been to grow low-cost production to at least 500,000 gold
ounces per year through staged, capital-efficient expansions funded primarily by cash flow from
operations. EP2 delivers on our long-term vision and now is an opportune time to embark on this next
phase of growth. We have a strong and experienced team in place who successfully delivered Phase 1,
and we have strong cash flows and a solid balance sheet that will allow us to build EP2 without diluting
our equity holders.
“We look forward to continuing to work collaboratively with our Indigenous partners, local communities
and the provincial and federal governments to responsibly develop the Blackwater Mine. EP2 will expand
the Blackwater Mine to be one of the largest gold mines in Canada and will generate significant economic
and other community benefits for many years to come.”
Artemis Gold President Jeremy Langford commented: “The decision to proceed with EP2 is another major
milestone for the Company. Since achieving commercial production in May, w e have been working
diligently on optimizing and right sizing the EP2 plant design to deliver the next stage of growth for the
Blackwater Mine, in parallel with advancing Phase 1A design and construction.
“We are being disciplined in our approach to planning for the successful delivery of EP2, allowing for
sufficient time through Q3 2026 to advance engineering and procurement together with early works
activities which allow us to hit the ground running when major works construction activities are scheduled
to commence in Q3 2026.”
Production and Cost Guidance
Based on the Company’s currently approved development plans, including the EP2 project, the following
table shows long-term production and cost guidance in relation to previously announced updated
guidance for 2025. Annual guidance for 2026 will account for additional downtime expected to tie-in the
Phase 1A expansion project and is expected to be provided in January 2026. Gold production in 2026 is
expected at the lower end of the three-year range and AISC1 at the higher end of the three-year range
for the expansion period.
Expansion
period
First five full
years
First 10 full
years
Units 2025 2026-2028 2029-2034 2029-2038
Annual average gold production koz/year 190-210 275-425 500-525 500-525
Annual average silver production koz/year 600-1,200 2,500-3,000 2,000-2,500
Annual average gold eq. production koz/year 285-450 520-550 510-540
All-in sustaining costs1 US$/oz Au $825-$875 $800-$900 $1,000-$1,100 $1,000-$1,100
1 Refer to Non -IFRS Measures. All-in sustaining costs are presented on an asset level basis and include production costs, selling costs and royalties, sustaining
capital costs, equipment finance costs beyond the expansion period, less silver by -product credits and changes in inventory, divided by payable gold ounces. Except
1 Refer to Non-IFRS Measures
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for 2025, they do not include regional and corporate general and administrative expense and other non -cash items which may be included in our annual guidance in
early 2026 and beyond .
Processing plant throughput rates are expected to average between 8 and 9 Mtpa for the next three years
with 2026 expected to be at an annual rate of about 6.5 Mtpa until Phase 1A is fully ramped up by the
end of 2026. After the expansion period, the processing plant is expected to run at the full production rate
of 21 Mtpa, not including any further optimization potential or future Phase 3 expansion. Mill recoveries
are expected to average 90% for the next three years and then average 93% after the construction of
both the Phase 1A and EP2 circuits.
Expanded Phase 2 Project Update
The EP2 project is consistent with the staged development strategy and plan for the Blackwater Mine as
contemplated in the current technical report entitled “Blackwater Gold Mine, British Columbia, NI 43-101
Technical Report on 2024 Expansion Study ” with an effective date of February 21, 2024 (the “2024
Expansion Study”).
The processing plant for EP2 has a design throughput capacity of 13 Mtpa, which combined with Phase
1A (8 Mtpa) will increase the total throughput capacity of the Blackwater Mine to 21 Mtpa. This compares
to the 2024 Expansion Study which had a 9 Mtpa Phase 2 plant expansion, increasing design capacity
to 15 Mtpa from the original Phase 1 design of 6 Mtpa.
The Phase 3 expansion to reach a 25 Mtpa processing rate, referenced in the 2024 Expansion Study, is
expected to be largely achieved through continued debottlenecking and optimization of the Phase 1/1A
and EP2 processing plants, with only modest further capital requirements anticipated to support these
efforts in the future. There is also potential for any Phase 3 expa nsion to be larger than 25 Mtpa in the
future and for mine life extension with re -optimization of the mine plan and potential mineralization
expansion. An update to the Mineral Resources and Mineral Reserve estimates is expected in 2026.
The EP2 processing plant is designed as a separate facility located adjacent to the existing Phase 1
processing plant. This will allow for the segregation of Phase 1 operating activities from EP2 construction
activities to ensure minimal disruption to current operations during EP2 construction and commissioning.
Front-end engineering and design for EP2 was completed in December 2025, along with detailed project
execution plans. Planning activities for early works and construction are well advanced. The Company
has already placed orders for several long lead time items, including for the primary grinding mills and
construction camps. In September 2025, orders were placed for both an 18 megawatt (“MW”) semi-
autogenous grinding (“SAG”) mill and an 18 MW ball mill. The ball mill is already fully fabricated due to
cancellation by another customer. These orders, along with the dedicated early works phase through Q3
2026, are expected to significantly de-risk the EP2 schedule.
Early works activities for EP2 are expected to start in January 2026 and will focus on key activities needed
to facilitate timely construction, including installation of a new construction camp, additional geotechnical
site investigation, earthworks, and further progressing detailed design and procurement activities. Major
works construction is expected to commence in Q3 2026 and is anticipated to last approximately two
years, with the first gold pour expected in Q3 2028 and full production rates before the end of 2028.
At the EP2 processing rate, the mine life is expected to be through to 2043, with the final five years of
processing from stockpiles. There is also potential to further extend the mine life beyond 2043 and to
further expand or optimize processing rates as further described below.
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The EP2 project and associated production and cost guidance is based on the Blackwater Mine’s existing
Proven and Probable Mineral Reserves in the 2024 Expansion Study. Artemis Gold is not aware of any
new information or data that materially affects the information included in the 2024 Expansion Study other
than changes due to normal mining depletion, and, in relation to the estimates of the Blackwater Mine’s
Mineral Reserve and Mineral Resource estimates, that all material assumptions and technical parameters
underpinning the estimates in the 2024 Expansion Study continue to apply and have not m aterially
changed.
Expanded Phase 2 Processing Plant Design
The EP2 processing plant will comprise the following:
• Primary gyratory crusher followed by twin secondary cone crusher s, housed in stand -alone
structures, with conveyors transporting material between each stage . Crushed material will be
stored in a covered crushed ore stockpile and conveyed to the Semi-Autogenous Ball Mill Crusher
(“SABC”) circuit. The SABC circuit will be used for coarse and fine grinding and will consist of an
18 MW SAG and 18 MW ball mill, with the circuit being closed by cyclones and including a pebble
crusher.
• Gravity concentration is incorporated into the grinding circuit design using two centrifugal
concentrators with an intensive cyanide leach unit used for recovering gold from the gravity
concentrate.
• Two leach and adsorption circuits, which will each consist of both a carbon -in-pulp (“CIP”) train
and a carbon -in-leach (“CIL”) train. The leach and adsorption circuit residence time will be 24
hours, with gravity flow between the between the tanks.
• The loaded carbon will be treated in an AARL elution and electrowinning circuit consisting of two
acid wash columns and two elution columns . Electrowinning will be carried out to recover gold
and silver from the elution solution, and the resulting metallic values will be dried and smelted into
doré bars.
• Detoxification circuit which will carry out cyanide destruction in the final tailings using oxygen and
sulfur dioxide.
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Figure 1 – Blackwater EP2 Processing Facility General Layout Schematic – Looking South
Figure 2 - Simplified EP2 Processing Facility Flowsheet
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Operational Overview
Increasing the Blackwater Mine’s throughput capacity to 21 Mtpa is expected to deliver many benefits,
including:
• An increase in annual gold equivalent production to approximately 520,000 to 550,000 ounces in
the first five full years
• A sustainable reduction in unit operating costs, driven by economies of scale and reduced fixed
operating costs per tonne of ore processed
• Improved operational flexibility resulting from two separate processing circuits and a larger mining
fleet
The EP2 mine plan considers the use of conventional open pit mining methods (drill-blast-load-haul), like
the current operation. The existing mine equipment fleet will be expanded progressively as mining rates
increase from the 2025 mining rate of approximately 40 Mtpa to expected peak mining rates of 90 -95
Mtpa, in line with the 2024 Expansion Study.
The Company continues to evaluate alternative methods for transportation of waste material to help drive
future cost savings, including crushing and conveying, as well electrification of the mine fleet. Decisions
on electrification of the mine fleet and alternative methods for transportation will be made in 2026 and will
depend on several factors, including securing the necessary long-term power requirements from BC
Hydro.
The majority of site infrastructure requirements for EP2 are already in place for Phase 1 and Phase 1A.
Certain other facilities will be upgraded or expanded to support EP2 operations.
The Blackwater Mine will continue advancing the construction of the tailings storage facility (“TSF”) and
site water management infrastructure in alignment with previously established plans. This work includes
raising the elevation of the existing tailings dam and developing the expanded footprint of the facility
downstream, as originally contemplated. The scope and design of these facilities do not change with
EP2, and the timing of the TSF raises and capital spend is planned to be consistent with the schedule
defined in the 2024 Expansion Study. Detailed plans for the TSF and water management infrastructure
installation may evolve along with ongoing site investigation drilling.
The cost s associated with expanding the mine fleet , continuing to progress tailings and water
management infrastructure, as well as other site infrastructure upgrades are in addition to the EP2 capital
cost. Annual expenditure estimates for these items will be provided each year and for 2026 will be
included as part of our production and cost guidance in January 2026. The 10-year all-in-sustaining cost
guidance above includes sustaining capital costs associated with the mine fleet, tailings and water
infrastructure projects, and other site infrastructure. During the expansion period (2026 -2028), capital
costs associated with expanding production will be considered growth capital and will not be included in
AISC1.
1 Refer to Non-IFRS Measures
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Phase 2 Permitting and Key Dependencies
• BC Hydro – the Company has received certain undertakings from BC Hydro which will secure
sufficient supply of green hydropower for EP2. The EP2 investment decision is conditional upon
receipt of formal confirmation of that supply, expected in early 2026.
• Permitting – the Blackwater Mine’s Federal and Provincial Environmental Assessment Certificates
(“EACs”) allow for processing of up to 21.9 Mtpa (60,000 tonnes per day). Alignment is required
to the Provincial Mine’s Act permit to match the EACs, which is expected to be obtained in 2026,
as well as certain minor permits for construction. In the near future, management plans to pursue
increased permit limits for processing beyond EP2.
Data Verification
The Qualified Persons, Mr. Langford and Mr. Scott, have visited the Blackwater Mine. They have had
discussions with relevant site personnel, Company management and external parties and have reviewed
supporting documentation including initial source documents.
Additional information on data verification can be found in the Blackwater technical report which is
available under the Company’s profile on SEDAR+ at www.sedarplus.ca.
Opportunities
The Company expects to evaluate and reoptimize the current mine life, Mineral Resources and Mineral
Reserves in 2026 considering the following:
• Future expansions – further expansions beyond EP2, including the Phase 3 expansion to a 25
Mtpa processing rate or beyond, will continue to be evaluated in conjunction with potential
mineralization expansion and mine life extension opportunities. This will include both
debottlenecking and optimizations of both Phase 1 /1A and EP2 processing plants beyond 21
Mtpa as well as additional processing circuits.
• Margin improvement – the Blackwater Mine team is focused on continuing to increase mill
throughput rates, targeting 10% above Phase 1 design throughput ahead of the Phase 1A
expansion. Various other optimization and improvement initiatives are being advanced, including
short interval control and hot -seat changes in the mine, and crushing circuit modifications, mill
process control and progressing the ore characterization program.
• Material movement alternatives – the Company continues to evaluate longer-term alternative
methods for transportation of waste material, electrification of the hauling fleet and automation of
hauling operations, each of which could potentially reduce operating costs and in the case of the
first two, lower the Blackwater Mine’s greenhouse gas emissions.
• Increased mine life – the current Mineral Reserve estimate is based on a US$1,400/oz gold
price. By applying a higher gold price f or pit design and cut -off grade, some of Blackwater’s
Mineral Resources could potentially be converted into Mineral Reserves to extend the mine life.
• Positive reconciliation - Additionally, the Company continues to see favourable grade control
reconciliation during the quarter, with the conversion of material previously classified as waste
into low- and medium-grade stockpile material. This low- and medium-grade material is currently
being stockpiled for processing later in the mine life.
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• Mineralization expansion – based on previous drilling, the mineralization remains open to the
north, northwest and at depth. Drilling to test the extension of mineralization beyond the limits of
the current reported Mineral Resource estimate is planned in 2026.
• District exploration – the broader Blackwater land package remains largely under-explored, with
over 30 drill targets identified within potential trucking distance of the existing processing facilities.
An initial $5 million regional exploration drill program commenced in October 2025, which is
expected to be part of a broader and longer-term regional exploration strategy over the next 5 to
10 years to fully test the highly prospective land package.
Phase 1A Construction Update
Phase 1A, announced in September 2025 , was identified as an attractive step change opportunity to
increase nameplate capacity from 6 Mtpa to 8 Mtpa by the end of 2026.
Some of the Phase 1A enhancements will support further optimization of the existing processing plant
and will be brought online in steps ahead of the overall Phase 1A completion date.
Phase 1A engineering, procurement and construction are advancing well. Some minor components have
already been commissioned, the 3.5 MW vertical grinding mill has been ordered, and overall, 10 out of
the 13 procurement packages have been committed.
During December 2025, the foundation civil works were completed for the new CIL pre-aeration and leach
tanks. Foundation civil works are now progressing for the leach area containment slab, as well as the
vertical mill supporting concrete and building foundations, with concrete pours for these facilities expected
during Q1 2026.
The benefit of throughput increases from Phase 1A are expected to be realized by the end of 2026.
The Company estimates that Phase 1A will be completed at a capital cost of $1 10 million, within the
previously announced guidance range.
Conference Call and Webcast Details
Artemis Gold will host a conference call and webcast on Tuesday, December 16, 2025 at 8.00am PST
(11.00am EST).
Conference call
Toll-free in Canada and the US: 1-833-752-3746
International: +1-647-846-8723
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=8ycAux2k
The webcast will be available for replay on the Company’s website at www.artemisgoldinc.com until
March 16, 2026.
About Artemis Gold
Artemis Gold is a well-financed, growth-oriented gold and silver producer and 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 primary focus is the