References to Canadian dollars are indicated as “C$” and references to US dollars are indicated as “US$”.
Vancouver, British Columbia, June 15, 2023 /CNW/- Artemis Gold Co., Ltd. (TSXV:ARTG) (“artemis gold” or “company“) has announced that it has committed additional investments as part of the Phase 1 development of the Blackwater Mine following an internal engineering analysis (“black water“) to facilitate the potential rapid tracking of Phase 2 expansions.
In support of these additional investments, the Company intends to amend its Gold Stream Agreement with Wheaton Precious Metals Corporation (“Wheaton”) to provide additional investments. US$40 million (54 million Canadian dollars) can be financed at a very low cost of capital.
Additional investments in Phase 1 include adding structural steel and widening the conveyor belt width in the crushing circuit and introducing a variable speed drive to the ball mill. The electrical components have also been upgraded to facilitate Phase 2 requirements and add the option of using redundant backup power. Other optimizations include a larger oxygen plant and downshaft sparging of oxygen onto the carbon before and during leaching (“CIL“) The exercise aims at optimizing the CIL layout to facilitate non-invasive expansion to Phase 2, as well as a complete conversion of the detoxification process to eliminate the need for tanker-fed liquid sulfur dioxide. I’m doing it.
These investments in Phase 1 initial capital are expected to enable the company to further optimize its throughput in the early days of its operations. This is particularly important as the initial ore type supplied to the mill is expected to be significantly softer than the maximum ore hardness envisioned over the mine life of the mine plan. September 2021 Feasibility study.
These additional costs, together with over-budget expenditures such as permit fees and additional warranty costs associated with those permits, amount to approximately 50 million Canadian dollars.
Stephen Dean“We have been considering these options internally for some time,” said Artemis Gold Chairman and CEO. We will provide additional funding to further pursue these optimizations at our cost of capital, allowing us to partner with Wheaton without significantly diluting our shareholders’ book value per share.”
Amendments to the Gold Stream Agreement were accomplished by simply increasing the number of ounces delivered to Wheaton before reducing Wheaton’s participation in the stream from 8% to 4% (previously, under the agreement, 2034 expected to occur in 2012). September 2021 This effectively gives Wheaton an interest in approximately 92,000 additional gold ounces to be delivered after approximately 2034 (subject to certain delivery criteria being met).
This mechanism is similar to prepayment and does not allow participation of additional stream percentages to Blackwater by Wheaton.
“Since Wheaton acquired Blackwater’s Gold and Silver Stream in 2021, we have been impressed with the progress the Artemis Gold team has made to de-risk projects and drive construction activity forward. He said. Randy Smallwood, President and Chief Executive Officer of Wheaton Corporation. “Wheaton is excited to continue working with our partner, Artemis Gold, and contribute to Blackwater’s success.”
With additional commitments, US$40 million The Gold Stream financing will fully raise initial capital optimized for the construction of Phase 1 of Blackwater. In addition to receiving initials, US$35.2 million Deposit based on Silverstream June 9, 2023the company has now also received its first documents. US$10 million Deposits based on Goldstream amendments.
The initial capital to be completed by the first gold injection is currently estimated to be in the range of: CAD 730 million and 750 million Canadian dollarsof which our company paid for approximately 150 million Canadian dollars like the end of May 2023.Company cash balance at the end of the period May 2023 totaling approximately 47 million Canadian dollars.
Building the entire current project May 31, 2023about 20% complete.
While we believe this estimate reflects all known inflationary impacts and contingencies up to the completion of the gold infusion, there will be significant changes to this estimate leading up to commissioning and the first gold infusion in the second half of 2024. We will provide quarterly updates on any changes.
The Company will commission an optimization engineering study to formally outline the benefits of installing the additional facilities described above and to confirm the benefits of moving ahead with the Phase 2 expansion earlier than planned. September 2021 Feasibility study. The results of this study are expected to be published in the fourth quarter of 2023.
The current gold price in Canadian dollars is about 2,700 Canadian dollars We support this initiative because its price is 33% higher than normal 2,025 Canadian dollars Comparable price used in September 2021 Feasibility study. Also note that the majority of Blackwater’s operating costs are expected to be denominated in Canadian dollars.
About Artemis Gold Co., Ltd.
Artemis Gold Inc. is a well-funded, growth-oriented gold development company with strong financial capabilities aimed at creating shareholder value through the identification, acquisition and development of gold assets in suitable geographic locations. The company’s current focus is on the construction of the Blackwater mining project in Central. british columbia About 160km southwest prince george 450 km northeast Vancouver. The project is one of Bulkley-Nechako’s largest capital investments. Fraser Fort George The Caribou region of British Columbia over the past decade. The first gold and silver extractions from the Blackwater mine are expected in the second half of 2024, and the mine is expected to be in production for at least 22 years. Artemis Gold is traded on TSX-V under the symbol ‘ARTG’. For more information, please visit: artemisgoldinc.com
qualified person
Jeremy LangfordFAUSIMM, a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical information contained in this news release.
Artemis Gold Co., Ltd.
On behalf of the Board of Directors
“Stephen Dean”
Chairman and Chief Executive Officer
+1 604 558 1107
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Cautionary Note Regarding Forward-Looking Information
This news release contains certain “forward-looking statements” and certain “forward-looking information” as defined in applicable Canadian and US securities laws. Forward-looking statements and information generally “may,” “will,” “anticipate,” “intend,” “estimate,” “anticipate,” “believe,” and “continue.” can be identified by the use of forward-looking terms such as “”, “plan”, “potential” or similar terms. Forward-looking statements and information are not historical facts and are made as of the date of this news release and include, but are not limited to, statements regarding project possibilities. Employment created in connection with a project. Contribution to the economy of the project.Prefectural opinion british columbia About projects and regions. Agreements and Relationships with Indigenous Partners.future of mining british columbiaour plans for the project, including construction, site preparation, land clearing and consultation with indigenous groups; Our other plans and expectations regarding the project. These forward-looking statements involve a number of risks and uncertainties, and actual results may differ. Significant factors that may cause variations in actual results include our ability to achieve our plans and objectives for project development within or not at all expected timing, the timing and receipt of any particular requests we may need, Risks include, but are not limited to: changes in development or mining plans due to approvals, commodity price fluctuations, interest and exchange rate fluctuations, risks inherent in exploration and development activities, changes in logistical, technical or other factors, unforeseen operational difficulties ( processes, inflated costs, unavailability of materials, equipment or third-party contractors, delays in receiving governmental approvals, industrial disruption, labor practices, and unforeseen events related to health, safety and environmental issues), the COVID-19 pandemic, political risks, social unrest, changes in general economic and financial market conditions, and how we proceed with project plans; Other Risks Related to Capabilities and Other Risks Most Defined by the Company Recent MD&A. In making forward-looking statements in this news release, we apply several important assumptions, including, but not limited to, the following assumptions. (1) Market fundamentals sustain mineral demand and prices. (2) receipt of necessary approvals and consents in connection with the development of the project; (3) availability of financing on suitable terms for the development, construction and continued operation of the project; (4) maintenance of commodity prices such that the project remains economically viable; (5) the COVID-19 pandemic and its associated restrictions will not materially affect us or prevent us from operating our business as planned; Our actual results or performance may differ materially from those expressed or implied by the forward-looking statements. Therefore, no assurance can be given that the events anticipated in the forward-looking statements will occur or, if they do, what effect they will have on our operating results or financial condition. Except as required by law, we undertake no obligation to update, change or revise any forward-looking statements, whether written or oral, consequential or otherwise, made from time to time and expressly categorically deny. Provide new information, future events or other information, except as required by applicable securities laws.
