Artemis Gold Inc. [ARTG-TSXV] on Tuesday May 4 released an update to its grade control drilling program that is targeting the planned high-grade starter pit at the company’s Blackwater gold project in central British Columbia.
To date, the company said results from the program provide significantly increased confidence in the target area earmarked for the first year of operations at Blackwater. It said the program confirmed wide near surface intersections of elevated gold grades at the start of the mine life as outlined in a 2020 pre-feasibility study (PFS).
Launched in the fourth quarter of 2020, the program consisted of 561 holes and 333,216 metres of reverse circulation drilling, which commenced in mid-November, 2020, and concluded at the end of March, 2021.
Highlights include 27 metres of 12.5 g/t gold.
“These results from the grade control program indicates the potential for more tonnage and more contained ounces within the high-grade starter zone, which could also potentially reduce the strip ratio at the beginning of the mine life,” said Artemis Chairman and CEO Steven Dean.
The data will be incorporated into the mine plan in the upcoming definitive feasibility study to be issued mid-2021.
Artemis eased 1.3% or $0.08 to $6.11 on volume of 120,860. The shares are trading in a 52-week range of $7.64 and $1.11.
Artemis recently signed a binding memorandum of understanding with an engineering firm that is proposing to build a processing facility at its Blackwater gold project for a guaranteed maximum price of $236 million.
The Blackwater Gold Project is a planned open pit gold and silver mine that is expected to begin life with a nominal milling rate of 15,000 tonnes per day or 5.5 million tonnes per year.
Artemis bought the Blackwater Project from New Gold Inc. [NGD-TSX, NYSE American] in August, 2020.
At a 0.20 g/t gold equivalent (AuEq) cut-off, Blackwater is estimated to host a measured and indicated resource of 12.4 million AuEq ounces (597 million tonnes at 0.65 g/t AuEq, 0.61 g/t gold, and 6.4 g/t silver.
The project is approximately 160 km southwest of Prince George and 446 km northeast of Vancouver. It is accessible by a major highway and access/service roads.