Artemis Gold has approved plans to increase throughput at its Blackwater mine in British Columbia, announcing a 33% expansion of the Phase 1 processing plant and placing orders for key equipment ahead of a Phase 2 expansion.

The company said this week that Phase 1 capacity would rise from 6-million tonnes a year to 8-million tonnes a year by the fourth quarter of 2026. Known as Phase 1A, the expansion will cost between C$100-million and C$110-million, equating to a capital intensity of C$50/t to C$55/t – one of the lowest in the industry.

CEO Dale Andres told delegates at the Mining Forum Americas conference, in Colorado Springs, that the upgrade marked “the next step in a transformational journey” for the company. “Blackwater is a Tier 1 asset in a Tier 1 jurisdiction. We have eight-million ounces of gold in reserve, very low all-in sustaining costs (AISC) and we’re generating strong cash flow. We are proud of delivering Blackwater in an industry-leading 22 months, but we are just getting started,” he said.

Construction on Phase 1A has already started, with earthworks under way and a vertical mill ordered to provide additional grinding capacity. Enhancements will also include an expanded leach circuit, upgraded oxygen and elution systems, reagent delivery optimisation, additional water storage ponds and a crushed ore stockpile cover.

Andres said Phase 1A would de-risk the business and provide additional cash flow to help fund the larger Phase 2 expansion, which the board is expected to consider before year-end. To accelerate that timeline, Artemis has ordered an 18 MW semi-autogenous grinding mill and an 18 MW ball mill, the latter already fully fabricated.

“On completion, Phase 2 has the potential to increase production to over 500 000 gold equivalent ounces per year,” Andres said. “If we sanction this in the fourth quarter of 2025, I would say a nominal two-year build. We are still finalising the front-end engineering design, but stay tuned – we are two to three months away from announcing.”

Artemis reiterated its 2025 production guidance of 190 000 oz to 230 000 oz of gold at an AISC of $670/oz to $770/oz. With strong cash flows, a low strip ratio and cheap hydroelectric power from the British Columbia grid, Andres said the company was positioned in the lowest decile of global gold producers.

“2025 is already a transformative year, but it is only the beginning,” he told the forum. “Phase 1A is a capital-efficient step change, Phase 2 will be transformational, and beyond that we have a tremendous land package with more than 30 regional exploration targets that will support growth for the next decade.”