Artemis Gold Inc (CVE: ARTG) (OTCMKTS: ARGTF) has encountered unexpected setbacks in the commissioning of its Blackwater Mine, leading to a delay in the anticipated first gold pour.
Originally scheduled for the Q4 of 2024, the company said on Tuesday that the target has been pushed off to January 2025 due to several operational and environmental challenges.
The Blackwater Mine is located in central British Columbia. The company has been building it with the idea of making it one of Canada’s largest gold mines. However, it’s run into some snags in the process.
First and foremost among the snags is that over the past 17 months, two separate wildfires forced workers to halt construction for approximately one and a half months during the peak construction period. These interruptions increased fixed overhead costs, delayed cash flows, and affected the project’s timeline and budget.
Unexpected delays in configuring and communicating within the process control network slowed progress at the mine. Constrained vendor availability during the holiday season compounded the issue, further postponing the final commissioning of the wet plant. These challenges required schedule adjustments, with ore processing through the ball mill now set to begin in January 2025.
The company increased its projected capital expenditure due to the delays. It updated its initial capital guidance, estimating the cost for the first gold pour at CAD$780 million to CAD$800 million, an increase of approximately 7 per cent from the previously guided figures.
However, despite these setbacks, the company has made significant progress in other areas.
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Artemis takes steps to minimize environmental impact
Some of the company’s progress includes the completion of the 135-kilometre long 225kV transmission line from the Blackwater Mine to BC Hydro’s Glenannan substation. This provides renewable grid power to the site. The tailings storage facility is also nearing completion, with expectations for it to be fully operational by the end of October 2024, prior to the plant’s ore commissioning.
Artemis Gold has been actively managing its relationship with local communities and environmental concerns, especially in light of the wildfire disruptions. The company has taken steps to ensure safety and minimize environmental impact, including the proactive evacuation of non-essential personnel during wildfire events.
The company remains committed to the Blackwater project, viewing it as a key asset in their portfolio. With construction over 95 per cent complete by late September 2024, and with the project fully funded, the focus is now on overcoming the remaining hurdles to achieve operational status. The company’s management has been working on cost-saving measures and schedule acceleration initiatives to mitigate the impact of these delays, aiming for a swift transition into production.
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joseph@mugglehead.com
