Artemis Gold Provides Update on Progress at Blackwater Mine
Artemis Gold Inc. | 595 Burrard St., Suite 3083, Vancouver, BC V7X 1L3
Phone: 604.558.1107 [email protected] www.artemisgoldinc.com
October 10, 2024 TSXV: ARTG
PRESS RELEASE
Artemis Gold Provides Update on Progress at Blackwater Mine
Vancouver, British Columbia – Artemis Gold Inc. (TSX-V: ARTG) (“Artemis Gold” or the “Company”)
provides an update on progress at the Blackwater Mine.
At September 30, 2024, overall construction of the Blackwater Mine was over 95% complete, the project
is fully funded, and first gold pour is targeted for late Q4 2024.
The 135-kilometre long 225kV transmission line between the Blackwater Mine and BC Hydro’s
Glenannan substation is complete and was successfully energized with renewable grid power on October
8, 2024.
Construction of the Tailings Storage Facility will be complete by the end of October 2024 in advance of
commencement of ore commissioning of the plant. The initial mining fleet has been commissioned and
pre-stripping of the mine, as well as the construction of haul roads , are well advanced, with first ore
expected to be received to the run of mine (“ROM”) pad over the course of the next month. In addition,
Blackwater’s operations camp is complete and has housed operational staff since late Q3 2024.
In order to accelerate the commissioning of the process facility to align with the other major construction
milestones already achieved, the Company has taken responsibility for plant commissioning from the
EPC contractor and will commence owner commissioning and remaining construction activity effective
immediately.
During the past 17 months, the Blackwater Mine has experienced two separate wildfire events which
halted construction at site for a total of approximately one and a half months during the most productive
months of the build. This resulted in additional fixed overhead drag on the project, and the benefit of
operating cash flows has been deferred by the period of productive construction days lost. Management
also invested in certain schedule acceleration initiatives to offset the delays, which ha ve added to t he
cost of construction.
Management has been working diligently on cost savings throughout its construction budget to minimize
the impact of the cost drivers described above.
The Company is, however, updating its initial capital guidance to first gold pour from (previously) $730
million to $750 million to (updated) $780 million to $800 million (an increase of approximately 7%).
Initial capital guidance excludes other corporate cost variances including the impact of delayed first
revenue on working capital, higher market interest rates on loan facilities, and other non-capital items, all
of which are included in the Company’s fully funded assessment.
The Company has executed an agreement with National Bank of Canada to provide additional stand-by
debt funding of up to $65 million, plus up to $10 million in capitalized interest and fees, on a subordinated
and unsecured basis. This funding is in addition to the Company’s existing Project Loan Facility of $360
million plus capitalized interest of up to $25 million (the “PLF”), as well as a cost overrun facility of $40
million (the “COF”) that was drawn in early October 2024 . The stand-by facility is repaya ble within 12
months, most likely from a new corporate debt refinancing in 2025, but otherwise ha s the same
commercial terms as the COF announced on March 1, 2023.
Artemis Gold Inc. | 595 Burrard St., Suite 3083, Vancouver, BC V7X 1L3
Phone: 604.558.1107 [email protected] www.artemisgoldinc.com
While the Company does not believe the full amount of the additional stand-by facility will be required,
the facility provides additional flexibility for any further contingencies, including the contingencies and
cash reserves required by the Company’s lenders under the PLF.
Steven Dean, Chairman and CEO of Artemis Gold, stated: “I am proud of the fact the project team ha s
managed to limit the impact of the wildfires, two force majeure events beyond management’s control, to
only a 7% increase in initial capital guidance. This is testament to the team’s financial discipline and deep
project development experience. The additional stand-by funding provided by one of the Company’s
existing relationship lenders provides us the financial flexibility to absorb the financial impact of these
events, while managing project schedule targeting first gold pour in late Q4 2024 and ramp -up of
operations beyond”.
Video
Watch here for a short video of the transmission line being energized: https://youtu.be/zxjAHp0iG0M
Photos
Plant site
Artemis Gold Inc. | 595 Burrard St., Suite 3083, Vancouver, BC V7X 1L3
Phone: 604.558.1107 [email protected] www.artemisgoldinc.com
Crushing circuit 25 kV Electrical substation and transformer
Tailings Storage Facility (TSF)
Operations camp
Artemis Gold Inc. | 595 Burrard St., Suite 3083, Vancouver, BC V7X 1L3
Phone: 604.558.1107 [email protected] www.artemisgoldinc.com
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 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 central British
Columbia in over a decade. The first pour of gold and silver at Blackwater is targeted for late Q4 2024.
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
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; opinions of the
Province of British Columbia rega rding 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 i ndigenous groups, and other plans and expectations of
the Company with respect to the project, including the duration or impact of the wildfire evacuation order.
Artemis Gold Inc. | 595 Burrard St., Suite 3083, Vancouver, BC V7X 1L3
Phone: 604.558.1107 [email protected] www.artemisgoldinc.com
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. Im portant 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.sedarplus.ca
In making the forward -looking statements in this press 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) any ne cessary 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) su stained commodity prices will continue to make
the project economically viable; and (5) there 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 t he 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 events 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 obliga tion, to update, alter or
otherwise revise any forward -looking statement, whether written or oral, that may be made from time to time,
whether because of new information, future events or otherwise, except as may be required under applicable
securities laws.