(Kitco News) - A recent expansion study puts Blackwater in the top 10 gold projects by size, says Steven Dean, chairman & CEO of Artemis Gold (TSXV:ARTG).
In February Dean spoke to Kitco Mining at the BMO Global Metals, Mining & Critical Minerals Conference 2024 in Hollywood, Florida.
Artemis acquired Blackwater from New Gold (TSX:NGD) in 2020 for CAD$190 million. The gold-silver project, located in central British Columbia 60 km from Prince George, is in the feasibility stage. It has 8 million ounces in gold reserves and 60Moz of silver reserves.
The expansion study announced on Feb. 21 has Blackwater producing 500,000 gold-equivalent ounces over the first 10 years, at an all-in-sustaining cost of USD$712 per ounce. It is rare for a mine to produce gold for under $1,000/oz.
“There are more or less a handful of mines in the world that produce more than half a million ounces a year in safe jurisdictions,” said Dean, adding “the Blackwater mine certainly on phase one is one of the lowest if not the lowest capital-intensity spends in our space right now.”
Dean also pointed out that many Tier 1 assets held by the senior gold producers are old, meaning they are more difficult and more costly to operate. Open-pit mines that have been operating a long time require more maintenance and have long haulage distances. Underground mines advanced in age must be dug deeper.
“The only way to truly achieve a low-cost mine is to build a new one,” he said.
Dean said Artemis Gold is targeting completion of the mine by the end of the second quarter, with commissioning slated for the summer.
Coverage of the BMO Global Metals, Mining & Critical Minerals Conference sponsored by First Majestic Silver (NYSE:AG).
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