Artemis Gold pegs Blackwater mine as $10bn ‘economic engine’

The Blackwater project is located in central British Columbia. Credit: Artemis Gold Inc.

Artemis Gold’s (TSXV: ARTG) Blackwater gold project would contribute more than C$13.2 billion ($10bn) to British Columbia’s economy over its 23-year mine life, according to an economic impact study released by the company.

The study, conducted by KPMG, focuses on job creation, fiscal revenues and overall economic wealth creation for the regions within and surrounding the project, the province and for Canada.

The statistics produced in the study are based on the base case scenario of the three-phased development of the Blackwater project as reported in the company’s pre-feasibility study.

The base case assumes:

  • Initial development capital of C$592 million to build a 5.5 million tonne per year mine (years 1-5)
  • C$426 million in capital costs to expand to 12 million tonnes per year (years 6-10)
  • C$398 million in capital costs to expand to 20 million tonnes per year (years 11-23)

The selected British Columbia regions within the study included the Bulkley-Nechako, Fraser-Fort George and Cariboo. With a total capital investment of C$1.5 billion (initial and expansion capital), Blackwater would be one of the largest capital investments for the region in the last ten years, Artemis said.

“The results of the economic impact study confirms what the development of the Blackwater gold project will deliver as a new economic engine for central British Columbia and Canada,” chairman and CEO Steven Dean said in a press release.

To move the project forward, the company will now focus on obtaining the final permit required to begin construction, planning a diamond drilling program to test resource extensions, and continuing work on a definitive feasibility study.

Shares of Artemis Gold rose 3% by noon ET Thursday. The Vancouver-based miner has a market capitalization of C$559.5 million.