Artemis says expanded Blackwater gold mine would generate free cash flow of $500M per year

Artemis Gold (TSXV: ARTG) has finished the enlargement examine for its Blackwater gold mine in principal British Columbia, concluding that a larger mine might produce 500,000 g/t gold equal in every of its first 10 years.

Blackwater gold mine

Production at that level would generate annual free cash waft of approximately $500 million at an all-in sustaining cost of US$712 in line with oz.

Development of the first phase is nearing of completion, with the venture predicted to pour its first gold bar in the 2nd 1/2 of 2024. The processing plant will be able to treating 6 million tonnes consistent with 12 months. With of entirety of phase , throughput could upward thrust to 15 million t/y in 12 months three and in segment 3 to 25 million t/y in 12 months seven. The enlargement may be funded from working cash flows.

Artemis based its growth look at on the existing reserves and sources. The challenge has proven and likely reserves of 334.3 million tonnes grading 0.75 g/t gold (eight million oz.) and five.8 g/t silver (62.2 million oz.) That equates to a gold equal of zero.Seventy eight g/t.

Using a 0.20 g/t gold equal cut-off, the measured and indicated assets are 596.8 million tonnes grading zero.Sixty one g/t gold (eleven,7 million ounces.) and six.4 g/t silver (122.4 million ounces.) The gold equal grade is zero.Sixty five g/t, and it contains 12.4 million oz.. Gold equal. There is also an inferred part of 16.9 million tonnes grading 0.45 g/t gold and 12.Eight g/t silver, or 0.53 g/t gold equal.

Early in 2023, Artemis announced it was optimizing several aspects of the mineral processing plant with a purpose to permit speedy-monitoring of segment . These modifications blanketed additional structural steel and expanded conveyor belt widths, in addition to variable-pace drives for the ball mill. Selected electric components were upgraded, as had been the oxygen plant and down-shaft-sparging for the pre-leach and carbon-in-leach circuits, along side growing a CIL layout that enables non-intrusive expansion. A complete conversion of the detoxing technique removed the need for tanker-supplied liquid sulphur dioxide.

The after-tax internet present value with a five% cut price of the expanded Blackwater challenge is $three.25 billion over its lifestyles, whilst a gold charge of US$1,800/oz.. Is used. The calculation of the after-tax NPV covered a B.C. Mining tax minimum of 2% after the effective price of thirteen% calculated on running income much less relevant capital value deductions. The provincial mining tax is deductible in computing provincial and federal earnings tax. The B.C. Provincial income tax charge is 12% after deductions, and a federal income tax of 15% after deductions became taken into consideration.

The enlargement take a look at did no longer speculate on numerous extra opportunities that Artemis continues to assess – an increased mine lifestyles, exploration of resource extensions, opportunity techniques of transporting waste cloth, electrification of the haulage fleet, automation of hauling operations, and manner engineering tasks.

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