Name of the Project
Blackwater gold/silver project.

Location
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-million 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.  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
Artemis Gold has selected two banks to arrange a C$360-million project loan facility to fund a significant portion of the estimated construction costs of its Blackwater project.

The company has received and executed a credit-approved mandate letter and term sheet from Macquarie Bank and National Bank of Canada. Subject to final approval, the banks will agree to each underwrite 50% of the facility.

Artemis chairperson and CEO Steven Dean has said the agreement to work with Macquarie and National Bank adds to the list of completed milestones for the development of Blackwater.  

“Obtaining terms that are approved by the respective credit committees prior to final permitting and the definitive feasibility study (due midyear) speaks to the robust and attractive economics of a staged development of the Blackwater project, as well as the quality of the technical body of work that has been undertaken over the Past nine years.”

Artemis is targeting the execution of a definitive credit agreement by the end of the third quarter and continues to consider all financing options, including nonbank construction proposals.

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.