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Artemis options zero-emissions trucks for Blackwater in 2029 Metal Tech News – May 25, 2022
Artemis orders mining fleet from Caterpillar for the gold-silver mine it is developing at Blackwater, including an option for electric haul trucks for delivery to the BC operation in 2029.
An aerial view of Blackwater, a Central BC open pit mine project being developed by Artemis that hosts 11.7 million ounces of gold and 122.4 million oz of silver.
With the goal of developing a carbon-neutral open pit mine at its Blackwater gold project in British Columbia, Artemis Gold Inc. has cut a deal with Caterpillar Inc. for the future delivery of electric haul trucks.
Located in Central BC, the Blackwater Mine is forecast to produce roughly 7.5 million ounces of gold and 40.4 million oz of silver over 22 years. A feasibility study published last fall details an open-pit operation that will be developed in phases – starting off as a 15,000 metric ton per day mill that would be expanded to 33,000 tpd in year six.
This mine is expected to generate an after-tax net present value (5% discount) of C$2.15 billion (US$1.68 billion) and a 43% internal rate of return. It is expected to take 2.3 years to pay back the C$645 million (US$503 million) needed to develop the first phase of this financially robust gold-silver mine.
With financing already in place for the first phase of the Blackwater Mine and permits expected in the third quarter, Artemis plans to begin construction by the end of the year.
Now, the company has secured a deal with Finning Canada for a fleet of Cat mining equipment, including a credit-approved commitment letter for an equipment lease facility with Caterpillar Financial Services Ltd.
"We are pleased to partner with Artemis Gold and Cat Financial to deliver and support the primary and ancillary fleet for the Blackwater project," said Finning Canada President David Primrose. "The mining sector in Western Canada continues to represent a great opportunity for us as we support our customers in improving efficiencies, productivity, and safety of their operations."
Through the agreement with Caterpillar, Artemis has the option to place orders for Caterpillar's zero-emissions haul trucks, which are currently under development, for shipments beginning in 2029.
More information on Caterpillar's development of electric surface mining equipment can be read at Caterpillar committed to better mining in the September 14, 2021 edition of Metal Tech News.
"The execution of these agreements provides Artemis certainty of equipment pricing and equipment availability for Blackwater's planned mining and construction activities," said Artemis Gold CEO Steven Dean. "Of equal significance, partnering with Caterpillar provides the project with a pathway towards decarbonization of Blackwater's haul fleet."
The zero-emissions Cat mining trucks that are currently planned to be delivered to Blackwater would be charged with clean electricity delivered to the gold-silver mine from the BC Hydro grid.
"With access to BC Hydro's clean power, the transition to an electrified fleet as soon as 2029 provides Artemis a pathway to significantly reduce the carbon footprint of the project," Dean added. "This is consistent with Artemis' ESG goals to responsibly develop the Blackwater gold project, identify innovative ways to reduce our impact on the environment while providing generational opportunities in the communities in which we operate."
The 2029 delivery of electric mine trucks coincides with Artemis' ambitions for carbon neutrality during the second phase of operations at Blackwater.
"We applaud Artemis' commitment to sustainability and the planned path to decarbonization at Blackwater," said Caterpillar Vice President Marc Cameron. "We look forward to supporting their carbon reduction objectives through the future deployment of Caterpillar's zero-exhaust emissions haul trucks once development is complete."
With more than 16 years of covering mining, Shane is renowned for his insights and and in-depth analysis of mining, mineral exploration and technology metals.
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