Artemis Gold Provides Q3 Update on Blackwater Mine Construction Progress Project Remains Fully Funded, Within Guidance for Initial Capital Expenditure, and on Schedule
Artemis Gold Inc. | 595 Burrard St., Suite 3083, Vancouver, BC V7X 1L3
Phone: 604.558.1107 [email protected] www.artemisgoldinc.com
October 24, 2023 TSXV: ARTG
PRESS RELEASE
Artemis Gold Provides Q3 Update on Blackwater Mine Construction Progress
Project Remains Fully Funded, Within Guidance for Initial Capital Expenditure, and on Schedule
Vancouver, British Columbia – Artemis Gold Inc. (TSX-V: ARTG) (“Artemis Gold” or the “ Company”)
provides an update on Q3 construction progress at the Blackwater Mine in central British Columbia. The
project remains fully funded , within the guidance for initial capital expenditure, and on schedule for first
gold pour in H2 2024.
At September 30, 2023, overall construction was 45% complete, and approximately C$280 million of the
guided initial capital expenditure of C$730 to C$750 million had been spent. The lag between the spend
and percentage of completion is as planned and consistent with a typical project S-curve.
Artemis Gold Chairman and CEO Steven Dean commented : “Our workforce and construction activity at
Blackwater returned to 100% following the wildfire events in early Q3. We remain focused on a disciplined
approach to development and remain on track for the first gold pour in H2 2024.”
Construction Update
Earthworks continued in priority infrastructure areas, with approximately 505 hectares logged and
cleared. Over 90% of access roads needed for Phase 1 construction are now operable. Construction of
the site water management facilities, including the water management pond and Davidson Creek
diversion, is well advanced.
Total major works man -hours worked up to September 30, 2023, were more than 440,000 man-hours
with a zero LTIFR1 and an AIFR2 of 138.97.
Plant Site
Process plant construction progressed well on a number of fronts, including the mill building foundation
preparation, reagents building, ball mill pedestals, carbon in leach (CIL) tanks, and the primary,
secondary, and tertiary crushers structures, as well as the reclaim tunnel civil works. Hydro testing of the
first CIL tank has been completed.
Construction of the run-of-mine (ROM) wall surpassed 75% complete at the end of September 2023 and
is scheduled to be completed by the end of October 2023, with the ROM dump slab civil works scheduled
to begin shortly thereafter.
Heavy Equipment
The construction fleet has been expanded to include 60- and 100-tonne rigid frame haul trucks and 150-
tonne excavators, providing more material movement capability to key areas. Initial deliveries of the
owner mining fleet are well advanced, including 400-tonne hydraulic backhoe excavators and three 240-
tonne rigid frame haul trucks which have arrived and are in various stages of assembly. Fleet assembly
is expected to be sufficiently advanced by year end in preparation for pre-stripping and earthworks
support in 2024. The remainder of the fleet to support operations will arrive predominately in the first half
of 2024.
Artemis Gold Inc. | 595 Burrard St., Suite 3083, Vancouver, BC V7X 1L3
Phone: 604.558.1107 [email protected] www.artemisgoldinc.com
Engineering and Procurement
At the end of September 2023, the Sedgman EPC contract works passed 61% complete overall, with
engineering and design over 95% complete. Procurement is 96% complete and progressing toward the
conclusion of package award s. Key mechanical equipment packages are in various stages of delivery,
including the primary, secondary and tertiary crushers and associated dry screens, while the wet plant
vibrating screens, ADR plant, gravity concentrator(s) and intensive leach reactor are all on site. The major
ball mill components, including the shell and head segments , are in transit and expected to arrive in
October. The electrical machinery control centre fabrication is complete and will undergo factory testing
in early Q4 2023.
Contracts are being finalized for explosives supply, mine fleet tire supply and the assay laboratory, while
proposals for the oxygen plant and water treatment plants are in the final stages of being evaluated.
Right-of-way clearing and construction of the 135km 225kV transmission line is scheduled to begin in Q4
2023.
Personnel
The Company’s staffing numbers at the Blackwater Mine surpassed 250 employees in Q3 2023, with
approximately 20% female and 30% identifying as Indigenous. Over 50% of the development team is
from the local region and over 80% are B.C. residents. The total workforce at the Blackwater Mine ,
including staff and contractors, was more than 500 at the end of September.
Funding
At September 30, 2023, Artemis Gold had estimated remaining Phase 1 capital expenditures of $450 to
$470 million. At the same date, the committed sources of funding totalled C$560 million, comprising:
• cash and cash equivalents of C$73 million;
• remaining drawdowns from streaming agreements of US$45.2 million (approximately C$62
million);
• a project loan facility of C$385 million (including up to C$25 million of capitalized interest), and
• a cost overrun facility of C$40 million.
Hedging
Artemis Gold has continued to execute a modest hedging program to secure the returns on capital
invested in the early years of operations and further de-risk servicing of the Company’s project loan facility
during the pay -back period. To date, the Company has entered into gold forward sales agreements to
deliver 190,000 ounces of gold bullion between March 2025 and December 2027 at a weighted average
sales price of C$2,851 per gold ounce, which is more than 40% higher than the gold price assumption in
the September 2021 Feasibility Study.
Engineering Study
With Phase 1 fully funded and 45% complete at the end of September 2023, a study to evaluate the
benefits of advancing the Phase 2 expansion earlier than contemplated in the September 2021 Feasibility
Study is progressing well. The results of this study are expected to be released in early 2024.
Artemis Gold Inc. | 595 Burrard St., Suite 3083, Vancouver, BC V7X 1L3
Phone: 604.558.1107 [email protected] www.artemisgoldinc.com
Artemis Gold President and COO Jeremy Langford commented : “The return and ramp -up to full
construction activities following the B.C wildfire event in Q3 2023 was a testimony to our disciplined and
coordinated workforce and collaborative partners. Q3 2023 saw positive gains in efficiencies and
productivity, with mo mentum building throughout the latter stages of the period. To date, the project
remains within our guidance for initial capital expenditure and on track for first gold in H2 2024 as
planned.”
Video
Watch here for a Q3 project update video: https://youtu.be/yR45JS3GQto
Photos
Blackwater overview – September
Artemis Gold Inc. | 595 Burrard St., Suite 3083, Vancouver, BC V7X 1L3
Phone: 604.558.1107 [email protected] www.artemisgoldinc.com
Reclaim tunnel – civil works – September Reagents building civil works – September
Secondary and tertiary crusher structural steel Lake 15/16 connector channel – September
– October
MSE retaining wall/crusher structure and conveyor footings – September
Artemis Gold Inc. | 595 Burrard St., Suite 3083, Vancouver, BC V7X 1L3
Phone: 604.558.1107 [email protected] www.artemisgoldinc.com
Water management pond creek diversion HDPE liner progress – September
CIL tank construction – October Truth and Reconciliation Day – September
793 body – September 793 haul truck build in progress – September
Artemis Gold Inc. | 595 Burrard St., Suite 3083, Vancouver, BC V7X 1L3
Phone: 604.558.1107 [email protected] www.artemisgoldinc.com
Vibrating feeder
Sulphur burner tanks
Apron feeder and primary gyratory crusher
Dry and wet screens
Artemis Gold Inc. | 595 Burrard St., Suite 3083, Vancouver, BC V7X 1L3
Phone: 604.558.1107 [email protected] www.artemisgoldinc.com
Ball mill head segment Ball mill shell segment in transit
About Artemis Gold
Artemis Gold 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 the 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 in 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 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 press release.
On behalf of the Board of Directors
Steven Dean
Chairman and Chief Executive Officer
+1 604 558 1107
Investor Relations contact
Meg Brown
Vice President, Investor Relations
+1 778 899 0518
Media relations contact
Artemis Gold Inc. | 595 Burrard St., Suite 3083, Vancouver, BC V7X 1L3
Phone: 604.558.1107 [email protected] www.artemisgoldinc.com
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 news
release.
Cautionary Note Regarding Forward-looking Information
This press release contains certain forward -looking statements and forward -looking information as defined under
applicable Canadian and U.S. securities laws. Statements contained in this press release that are not historical
facts are forward-looking statements that involve known and unknown risks and uncertainties. Any statements that
refer to expectations, projections or other characterizations of future events or circumstances contain forward -
looking statements. In certain cases, forward -looking statements and information can be identified using forward-
looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans”,
“potential” or similar terminology. Forward-looking statements and information are made as of the date of this press
release, and include, but are not limited to, statements regarding the potential of the Blackwater mine project; the
jobs to be created in connection with the project; the contribution of the project to the economy; opinion s of the
Province of British Columbia regarding the project and the region; agreements and relationships with Indigenous
partners; the future of mining in British 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 represent management’s current beliefs, expectations, estimates and projections
regarding future events and operating performance, which are based on information currently available to
management, management’s historical experience, perception of trends and current business conditions, expected
future developments and other factors which management considers appropriate. Such forward-looking statements
involve numerous risks and uncertainties, and actual results may vary. Important risks and other 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 respect 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 estimates and results, 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 heath, safety and
environmental matters), changes in governmental regulation of mining operations, 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,
which is available on the Company’s website at www.artemisgoldinc.com and on SEDAR at www.sedar.com.
In making the forward -looking statements in this press release, the Company has applied seve ral material
assumptions, including without limitation, the assumptions that: (1) market fundamentals will result in sustained
mineral demand and prices; (2) any necessary approvals and consents in connection with the development of the
project will be obtained; (3) financing for the development, construction and continued operation of the project will
continue to be available on terms suitable to the Company; (4) sustained commodity prices will continue to make
the project economically viable; and (5) ther e will not be any unfavourable changes to the economic, political,
permitting and legal climate in which the Company operates. Although the Company has attempted to identify
important factors that could affect the Company and may cause actual actions, events, or results to differ materially
from those described in forward-looking statements, there may be other factors that cause the actual results or
performance by the Company to differ materially from those expressed in or implied by any forward -looking
statements. Accordingly, no assurances can be given that any of the e vents anticipated by the forward -looking
statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or
the financial condition of the Company. Investors should therefore not place undue reliance on forward-looking
statements. The Company is under no obligation and expressly disclaims any obligation, to update, alter or
otherwise revise any forward -looking statement, whether written or oral, that may be made from time to time,