Name of the Project
Blackwater gold/silver project.

Location
The project is located in central British Columbia, Canada.

Project Owner/s
Artemis Gold.

Project Description
Artemis released the results of a prefeasibility study (PFS), based on a revised development approach, in August 2020.

The PFS proposes the staging of the ultimate development of the mine, among other derisking initiatives, which allow for improved economics while enabling the company to phase the development before ramping up to full throughput of 20-million tonnes a year.

The proposed mine plan involves mining 334-millionn tonnes of ore, 584-million tonnes of waste rock and 83-million tonnes of overburden.  

The project will comprise the construction, operation and closure of an openpit gold and silver mine and ore-processing facilities, starting with a nominal milling rate of 15 000 t/d, or 5.5-million tonnes a year.  

The ore-processing facilities will be expanded to achieve 33 000 t/d, or 12-million tonnes a year, starting in Year 6, with a final expansion to achieve 55 000 t/d, or 20-million tonnes a year, starting in Year 11.  

The material will be sourced through conventional openpit mining methods, initially targeting high-grade, near-surface ore for processing, with lower-grade material being stockpiled for processing at the end of the mine life.

Most of the waste material sourced from the pit will be used to build the tailings storage facility (TSF) or placed in the TSF itself.  Overburden and nonpotentially acid-generating waste-rock not required for construction will be placed in stockpiles adjacent to the openpit. Potentially acid-generating waste-rock, along with tailings, will be deposited into the TSF located to the north/north-west of the openpit.

In addition to the site infrastructure, a proposed 134 km, 230 kV transmission line will be built from the BC Hydro Glenannan substation near Endako, British Columbia, to provide power for the project.

Openpit mining methods, comprising drill, blast, load and haul, will be used. 

The openpit mine is expected to operate for 18 years, excluding 15 to 18 months of preproduction mining. Following mining operations, stockpiled low-grade material will be processed for an additional five years, resulting in a total life-of-mine of 23 years.  

The openpit will be developed with a series of pushbacks.  The first stage will target suitable waste rock for construction while exposing near-surface, high-grade material. The second phase will target higher-grade, lower-strip-ratio ore, providing mill feed over the initial years of the project.  The remaining stages expand the pit to the north, targeting progressively deeper ore.

The mining and fleet maintenance operations will be owner-managed. The mine equipment fleet is planned to be bought through lease arrangements.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The base case estimated an after-tax net present value, at a 5% discount rate, of $2.25-billion and an internal rate of return of 34.8%, with a payback on initial capital of two years.

Capital Expenditure
The base case estimates an initial capital cost of $592-million.

The Phase 2 expansion will cost about $426-million and Phase 3 $398-million.

Planned Start/End Date
Not stated.

Latest Developments
Over the next 12 to 18 months, Artemis plans to:

• complete a National Instrument 43-101 technical report with regard to the PFS;
• start a feasibility study based on the PFS;
• continue engagement and negotiations with indigenous nations who may be impacted on by the project;
• complete supplemental geotechnical and hydrogeological site investigation work;
• progress and achieve final permitting required to start construction;
• start a preconstruction grade control drilling programme;
• execute an exploration core drilling programme to test for potential extensions of the known mineralisation;
• award lump-sum fixed-price engineering, procurement and construction contracts for the various construction components; and
• arrange the requisite debt and equity financing to support development activities.

Key Contracts, Suppliers and Consultants
Moose Mountain Technical Services, with support from Knight Piésold (PFS).

Contact Details for Project Information
Artemis Gold, tel +1 604 558 1107 or email info@artemisgoldinc.com.