Gold production would average 248,000 ounces a year during the first phase and initial five years of production, rising to 420,000oz/y in phase two in years six to 10 and then 316,000oz/y for the third phase in years 11 to 23.
All-in sustaining costs are estimated at $668/oz in phase one, $696/oz in phase two and $911/oz in phase three.
The project would yield a post-tax net present value of US$2.2 billion at a 5% discount rate and an internal rate of return of 34.8% following a $592 million initial capital expenditure.
The development would target a higher-grade zone of near surface mineralisation in the southern half of the pit for processing in the first seven years to support a shorter payback period and a higher IRR.
The three-stage approach would spread capital expenditure throughout the project's operating life with the initial 5.5 million tonnes per year $592 million phase one to be followed by $426 million in for stage two and $398 million for stage three financed from free cash flow, which would bring the mine to a throughput of 20Mtpy.
"The strategy of staging the ultimate development of the mine, among other de-risking initiatives, allows for much improved economics, while allowing the company to phase the development. … We believe that this disciplined approach is the most prudent way to advance one of the largest undeveloped gold projects in Canada," said chair and CEO Steven Dean.
Artemis acquired Blackwater from New Gold, which retains gold stream on the project.
The smaller-scale start-up than the 2014 New Gold feasibility study defers a portion of waste pre-stripping from initial capital into operating costs, features the staged installation of three similar-sized processing trains, re-designed three-stage crushing with a ball mill to provide improved capacity to accommodate variability of ore hardness, reduces the footprint and laydown area requirements, stages tailings capital costs allowing for the optimisation of initial capacity and haulage distances and enhanced water management flexibility.
Shares in Artemis Gold opened up 13% at C$4.84, valuing the company at $242 million.
