Artemis Gold Announces Optimized Phase 1 Development of Blackwater Mine and US$40M Additional Funding; Updated Phase 1 Capex Now Fully Funded References to Canadian dollars are denoted as “C$” and references to US dollars as “US$”
Artemis Gold Inc. | 595 Burrard St., Suite 3083, Vancouver, BC V7X 1L3
Phone: 604.558.1107 [email protected] www.artemisgoldinc.com
June 15, 2023 TSXV: ARTG
PRESS RELEASE
Artemis Gold Announces Optimized Phase 1 Development of Blackwater Mine and US$40M
Additional Funding; Updated Phase 1 Capex Now Fully Funded
References to Canadian dollars are denoted as “C$” and references to US dollars as “US$”
Vancouver, British Columbia – Artemis Gold Inc. (TSX -V: ARTG) (“Artemis Gold” or the “ Company”)
announces that as a result of internal engineering analysis, it has committed to additional investments as
part of its Phase 1 development of the Blackwater Mine (“Blackwater”) in order to facilitate the potential
fast-tracking of the Phase 2 expansion.
In support of these additional investments, the Company has amended the gold stream agreement with
Wheaton Precious Metals Corp. (“Wheaton”) which will provide an additional US$40 million (C$54million)
in funding at a very low cost of capital.
The additional investments during Phase 1 include additional structural steel and increased conveyor belt
widths in the crushing circuits, as well as the introduction of variable- speed-drives to the ball mill.
Electrical components have also been upgraded to facilitate the Phase 2 requirements and to include
optionality in relation to the use of redundancy back -up power sources. Other optimizations include
upsizing of the oxygen plant coupled with down-shaft-sparging of oxygen to the pre-leach and carbon-in-
leach (“ CIL”) trains, along with the optimization of the CIL layout in order to facilitate non -intrusive
expansion to Phase 2, as well as full conversion of the detoxification process to remove the need for
tanker-supplied liquid sulphur dioxide.
These investments in the Phase 1 initial capital are expected to allow the Company to further optimize
throughput in the early years of operation. This is particularly significant as it is expected that early ore
types fed to the mill will be considerably softer than the maximum ore hardness contemplated across the
life of mine plan in the September 2021 Feasibility Study.
The cost of these additions , together with over-budget expenditures on permitting costs and additional
bonding costs connected to those permits, will require additional funding of approximately C$50 million.
Steven Dean, Chairman and Chief Executive Officer of Artemis Gold, said “We have been exploring these
options internally for some time. This announcement is the logical next step and importantly provides the
additional funding to further pursue these optimizations at a low cost of capital with a great partner in
Wheaton, without a material dilution of the net asset value per share for shareholders.”
The amendment to the Gold Stream Agreement has been achieved with a simple increase in the number
of ounces to be delivered to Wheaton prior to the reduction in Wheaton’s stream participation from 8% to
4% (previously expected to occur in 2034 based on the September 2021 Feasibility study schedule) ,
which effectively provides Wheaton with an interest in approximately 92,000 additional gold ounces to be
delivered starting in approximately 2034 (subject to certain delivery thresholds being met).
This mechanism is akin to a pre-pay and grants no additional stream percentage participation in
Blackwater by Wheaton.
Artemis Gold Inc. | 595 Burrard St., Suite 3083, Vancouver, BC V7X 1L3
Phone: 604.558.1107 [email protected] www.artemisgoldinc.com
“Since Wheaton’s acquisition of the Gold and Silver Streams on Blackwater in 2021, we have been
impressed with the progress the Artemis Gold team has made in de-risking the project and advancing
construction activities,” said Randy Smallwood, Wheaton’s President and Chief Executive Officer.
“Wheaton is excited to continue working beside our partner, Artemis Gold, and to contribute to the
success at Blackwater.”
With the commitment of the additional US$40 million funding under the Gold Stream, the optimized initial
capital for Phase 1 construction of Blackwater is fully funded. In addition to receiving its initial US$35.2
million deposit under the Silver Stream on June 9, 2023, the Company has also now received its initial
US$10 million deposit under the amendment to the Gold Stream.
The initial capital to complete to first gold pour is now estimated to range between C$730 million and
C$750 million, of w hich the Company had incurred approximately C$150 million as at the end of May
2023. The Company’s cash balance at the end of May 2023 totalled approximately C$47 million.
Overall project construction as of May 31, 2023, stands at approximately 20% complete.
While the Company believes it has captured all known inflationary impacts plus contingencies to
completion to gold pour in this estimate, it will provide updates on any material changes to this estimate
on a quarterly basis through to commissioning and first gold pour in H2 2024.
The Company intends to commission an optimi zation engineering study to formally outline the benefits
of the installation of the additional equipment outlined above and to confirm the benefits of advancing the
Phase 2 expansion earlier than contemplated in the September 2021 Feasibility Study. The results of
this study are expected to be released in Q4 2023.
The current gold price in Canadian dollars of approximately C$2,700 supports this initiative as that price
is 33% higher than the C$2,025 equivalent price used in the September 2021 Feasibility Study. Note also
that the vast majority of Blackwater’s operating costs are expected to be denominated in Canadian
dollars.
About Artemis Gold Inc.
Artemis Gold Inc. is a well-financed, growth-oriented gold 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 current focus is construction of the
Blackwater Mine project in central British Columbia approximately 160km southwest of Prince George
and 450km northeast of Vancouver. The project is one of the largest capital investments in the Bulkley-
Nechako, Fraser-Fort George and Cariboo regions of B.C. in the last decade. The first pour of gold and
silver from Blackwater Mine is expected H2 2024 and the mine is expected to be in production for a
minimum of 22 years. Artemis Gold trades on the TSX-V under the symbol “ARTG”. For more information
visit: artemisgoldinc.com
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Artemis Gold Inc. | 595 Burrard St., Suite 3083, Vancouver, BC V7X 1L3
Phone: 604.558.1107 [email protected] www.artemisgoldinc.com
Qualified Person
Jeremy Langford, FAUSIMM, a Qualified Person as defined by National Instrument 43-101, has
reviewed, and approved the scientific and technical information in this news release.
ARTEMIS GOLD INC.
On behalf of the Board of Directors
“Steven Dean”
Chairman and Chief Executive Officer
+1 604 558 1107
For further information
Investor Relations contact
Meghan Brown
Vice President, Investor Relations
+1 778 899 0518
Media relations contact
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Cautionary Note Regarding Forward-Looking Information
This news release contains certain “forward looking statements” and certain “forward-looking information”
as defined under applicable Canadian and U.S. securities laws. Forward- looking statements and
information can generally be identified by the use of forward -looking terminology such as “may”, “will”,
“expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans”, “potential” or similar terminology.
Forward-looking statements and information are not historical facts, are made as of the date of this news
release, and include, but are not limited to, statements regarding the potential of the Project; the jobs to
be created in connection with the Project; the contribution of the Project to the economy; opinions of the
Province of British Columbia regarding the Project and the region; agreements and relationships with
Indigenous partners; the future of mining in Brit ish Columbia; the plans of the Company with respect to
the Project, including construction, site preparation, clearing, consultation with indigenous groups ;; and
other plans and expectations of the Company with respect to the Project. These forward- looking
statements involve numerous risks and uncertainties and actual results may vary. Important factors that
may cause actual results to vary include without limitation, risks related to the ability of the Company to
accomplish its plans and objectives with r espect to the development of the Project within the expected
timing or at all, the timing and receipt of certain required approvals, changes in commodity prices,
changes in interest and currency exchange rates, risks inherent in exploration and development activities,
changes in development or mining plans due to changes in logistical, technical or other factors,
unanticipated operational difficulties (including failure of plant, equipment or processes to operate in
accordance with specifications, cost escalation, unavailability of materials, equipment or third party
contractors, delays in the receipt of government approvals, industrial disturbances, job action, and
unanticipated events related to heal th, safety and environmental matters), the COVID -19 pandemic,
Artemis Gold Inc. | 595 Burrard St., Suite 3083, Vancouver, BC V7X 1L3
Phone: 604.558.1107 [email protected] www.artemisgoldinc.com
political risk, social unrest, changes in general economic conditions or conditions in the financial markets,
and other risks related to the ability of the Company to proceed with its plans for the Project and other
risks set out in the Company’s most recent MD&A. In making the forward-looking statements in this news
release, the Company has applied several material assumptions, including without limitation, the
assumptions that: (1) market fundamentals will result in sustained mineral demand and prices; (2) the
receipt of any necessary approvals and consents in connection with the development of the Project; (3)
the availability of financing on suitable terms for the development, construction and continued operation
of the Project; (4) sustained commodity prices such that the Project remains economically viable; and (5)
that the COVID-19 pandemic and restrictions related thereto will not materially impact the Company or
prevent the Company from operating its business as planned. The actual results or performance by the
Company could differ materially from those expressed in, or implied by, any forward-looking statements.
Accordingly, no assurances can be given that any of the events anticipated by the forward- looking
statements will transpire or occur, o r if any of them do so, what impact they will have on the results of
operations or financial condition of the Company. Except as required by law, the Company is under no
obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any forward-looking
statement, whether written or oral, that may be made from time to time, whether as a result of new
information, future events or otherwise, except as may be required under applicable securities laws.