Artemis Gold says major works construction has commenced on the EP2 growth project, with the first concrete pour for the ball mill foundations completed ahead of schedule.
The early works program for EP2 commenced in January 2026 and is nearing completion, with engineering and procurement advancing well and all long lead equipment ordered. Site clearing and bulk earthworks for the processing plant expansion is advancing ahead of plan and completion of the 612-bed construction camp expansion is expected in early August.
The Company has also secured supply assurances from BC Hydro that ensure the continued supply of low-cost renewable hydropower at the expanded throughput capacity.
EP2 was announced in Q4 2025 and represents a significant addition to processing plant capacity above Phase 1A. When complete, Phase 1A and EP2 will expand throughput capacity by 250%, from the existing 6 Mtpa to 21 Mtpa by Q4 2028. EP2 increases gold production to over 500,000 ounces per year, and economies of scale provide for lower unit operating costs, which will cement Blackwater’s position as one of the lowest-cost and highest-margin gold operations globally and transform the mine into one of the three largest single gold mines in Canada. The project is on schedule and on budget and expected to be completed at a capital cost of $1.44 billion.
The Company has materially derisked expected revenue from gold sales during the EP2 capital spend period by purchasing put options on 172,500 ounces of gold at a strike price of C$5,300/oz, with expiry dates between July 2026 and June 2027 covering more than 80% of expected spot sales during that period. These derivatives provide downside gold price protection without giving up any gold price upside, thereby helping ensure the project can still be funded from operating cash flow if gold prices decrease materially.
Artemis Gold CEO Dale Andres commented: “We are very pleased with the progress being made on our expansion projects, which once complete will transform Blackwater into one of the largest and lowest cost gold mines in Canada. The implementation of our gold price put strategy is prudent risk management, providing us with downside gold price protection while maintaining full upside price exposure on our spot sales.”
Artemis Gold President Jeremy Langford commented: “It’s been a busy and highly productive H1 2026 as we ramp up activities across Phase 1A and EP2 to deliver on this exciting next phase of growth at Blackwater. Phase 1A is progressing well, and we have been focused on laying the necessary groundwork to ensure we deliver EP2 on time and on budget. We have complemented the existing Artemis Gold project delivery team with several key additions. I am very encouraged by the progress made, with bulk earthworks well advanced and the first concrete pour for the ball mill completed ahead of schedule.”
At peak construction, EP2 is expected to generate 1,500 direct construction jobs, plus additional indirect jobs and indirect and induced economic activity. This is in addition to the approximately 900 contractors and direct employees currently working at the Blackwater Mine to operate Phase 1. Once EP2 is completed, the Blackwater Mine is expected to employ approximately 1,200 direct employees and contractors.