The project is expected to create 825 jobs during construction and expansion phases
Artemis Gold announced that the C$1.5bn ($1.14bn) Blackwater gold project in Canada has potential to contribute more than C$13.2bn ($10bn) to the country’s economy over its 23 years of operational life.
The estimation is based on a study that was carried out to assess the economic impact of the project.
Produced by KPMG, the study focuses on fiscal revenues, job creation, and overall economic wealth creation for the regions surrounding the project, the province and for the country.
The study’s statistics have been produced based on the base case scenario of the phased development of the Blackwater project.
Located approximately 446km from Vancouver in British Columbia, the Blackwater project consists of 75 mining claims extending over 30,578ha.
Blackwater gold project to cost $452m for initial development
Artemis Gold said that the base case assumes C$592m ($451.9m) as initial development cost to build a 5.5 million tonne per year mine during the first five years.
It also assumes C$426m ($325.2m) investment to expand to 12 million tonnes per year (years 6-10); and capital costs of C$398m ($303.8m) to expand to 20 million tonnes per year (years 11-23).
The project is expected to create 825 jobs during construction and expansion phases as well as 457 jobs once commissioned.
Artemis Gold chairman and CEO Steven Dean 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.
“After over seven years of the Project being diligently and respectfully advanced through the environmental assessment process and reaching agreement with the Lhoosk’uz Dené and Ulkatcho First Nations the environmental assessment was approved in 2019.
“The Blackwater Project has the potential to economically contribute at the local, provincial and federal levels for more than 25 years.”
The company said it will now focus on securing the project’s final permit required to start construction, planning a diamond drilling programme to test resource extensions. It will also continue to work on a definitive feasibility study.
In August, Artemis Gold acquired the Blackwater gold project from Canadian mining firm New Gold for a total cash consideration of C$190m ($144m).