Artemis Gold's Blackwater Mine Approves $1.44 Billion Phase 2 Expansion, Eyes 500,000 oz Annual Production

Artemis Gold Advances Blackwater Into Canada's Top Tier of Gold Producers

Artemis Gold Inc. (TSX-V: ARTG) has approved a transformative $1.44 billion Expanded Phase 2 (EP2) development at its flagship Blackwater Mine in central British Columbia, a move that will cement the operation as one of the three largest single gold mines in Canada.

The decision, announced in December 2025, follows a record-breaking fourth quarter in which Blackwater produced 68,480 ounces of gold — bringing full-year 2025 production to 192,808 ounces. The mine achieved commercial production in May 2025 and was officially opened as Canada's newest gold and silver mine on May 30, 2025.

Phase 2 Expansion Details

The EP2 development will expand processing capacity to 21 million tonnes per annum (Mtpa), up significantly from the current Phase 1 throughput. Once operational, the Blackwater Mine is expected to produce an average of 500,000 to 525,000 ounces of gold per year for the first 10 full years of expanded production, extending mine life to 2043.

Early works for EP2 are scheduled to begin in early 2026, with major construction planned to start in the third quarter of 2026 and continue for approximately two years. Critically, the $1.44 billion capital program is expected to be funded entirely from operating cash flow, eliminating the need for dilutive equity raises.

In September 2025, Artemis also announced a 33% increase to Phase 1 processing plant capacity and placed orders for long-lead equipment for the Phase 2 expansion — demonstrating the operational momentum building at the site.

Location and Strategic Significance

The Blackwater Mine is located approximately 160 km southwest of Prince George and 450 km northeast of Vancouver in the Nechako Plateau region of central British Columbia. The project sits within the traditional territories of the Nadleh Whut'en and Saik'uz First Nations, with whom Artemis has established impact benefit agreements.

The mine represents a significant milestone for British Columbia's mining sector, which has seen limited large-scale gold mine development in recent years. At full EP2 capacity, Blackwater would rank among Canada's most productive gold operations, alongside established producers such as Agnico Eagle's Canadian mines and Barrick's Hemlo operation.

Recent Production Update

In March 2026, Artemis reported an unplanned mill shutdown at Blackwater due to a ball mill mechanical issue. The company confirmed that full-year 2026 production guidance remains intact, with the temporary outage not expected to materially impact annual targets. This type of operational transparency is consistent with the company's approach since entering production.

Market Context

The expansion comes at an opportune moment. Gold prices have surged to record highs above $4,800 per troy ounce in early 2026, driven by central bank buying, geopolitical uncertainty, and growing demand for safe-haven assets. At current prices, Blackwater's projected 500,000+ oz annual output would generate substantial free cash flow to fund the EP2 construction and potentially support future dividends or exploration.

Artemis Gold's stock (ARTG) has been closely watched by institutional investors as the company transitions from developer to significant producer, with the EP2 approval representing a major de-risking event for the investment thesis.

Looking Ahead

With commercial production established, a record Q4 2025 behind it, and a fully-funded $1.44 billion expansion approved, Artemis Gold enters 2026 as one of the most compelling growth stories in the Canadian gold sector. The Blackwater Mine's trajectory — from construction start in 2022 to one of Canada's largest gold producers by 2028 — underscores British Columbia's enduring importance as a premier mining jurisdiction.