Artemis approves $1.44bn expanded Phase 2 development at Blackwater

The company said on Monday that its board had signed off on the capital-efficient EP2 expansion, which will increase throughput from the 8-million tonnes a year planned under the Phase 1A project currently under construction to 21-million tonnes a year by the end of 2028. Once fully operational, Blackwater is expected to produce an average of 500 000 oz/y to 525 000 oz/y of gold over the first ten full years of production.

The EP2 investment decision is conditional on the receipt of formal confirmation of adequate hydroelectric power supply from BC Hydro, which Artemis expects in early 2026.

Capital expenditure for the expanded Phase 2 has been estimated at $1.44-billion, which the company says compares favourably with prior expansion studies and industry benchmarks, with a capital intensity of about $110/t of additional yearly throughput. Artemis intends to fund the expansion primarily from operating cash flows, supported by a strengthened balance sheet.

The EP2 development builds on the staged growth strategy outlined in the Blackwater technical report released in February 2024, but reflects optimisation at a larger scale, enabled by a strong gold price environment and the previously approved Phase 1A expansion. The expansion is based on existing proven and probable mineral reserves, with no changes to current reserve or resource estimates.

Artemis expects economies of scale from the expansion to lower unit operating costs, with all-in sustaining costs forecast at between $800/oz and $1 100/oz over the first ten years of EP2 production. At current spot gold prices of about $4 200/oz, this would translate into margins of more than $3 000/oz, or roughly 75% of revenue.

Early works for EP2 are scheduled to begin in January, with major construction planned to start in the third quarter of 2026 and continue for about two years.

Peak construction is expected to create about 1 500 direct jobs, in addition to the roughly 900 employees and contractors currently engaged at the Blackwater operation. Once EP2 is complete, the mine workforce is expected to number about 1 200.

CEO Dale Andres said the approval of EP2 delivered on the company’s long-term vision of growing Blackwater into a large-scale, low-cost gold producer through disciplined, staged expansions funded largely from cash flow. He added that the project would generate significant economic benefits while being developed in collaboration with Indigenous partners, local communities and government.

At the expanded processing rate, Blackwater’s mine life is expected to extend to 2043, with potential for further optimisation, expansion and mine-life extension beyond that date.