Canada-focused Artemis Gold has closed out its first full year of production with record quarterly output from its Blackwater mine in British Columbia, while outlining guidance that positions the operation among the lowest-cost gold producers globally.

The TSX-V-listed miner reported fourth-quarter 2025 gold production of 68 480 oz, a 12% increase on the previous quarter, lifting full-year production to 192 808 oz. The stronger quarter was driven by higher mill feed grades and improved processing recoveries as mining progressed deeper into the deposit.

“Record quarterly gold production is a fitting end to an extraordinary first year of operations for Artemis Gold. Our mining operations are performing extremely well, with ore grades being delivered to the mill as planned,” said CEO Dale Andres.

Mill feed grade averaged 1.66 g/t gold in the December quarter, 12% higher than in the September quarter, while gold recovery improved to 88.1% from 84.9%. Artemis said the improvement reflected both better ore characteristics and ongoing optimisation of the mill circuit.

While the mill operated above design rates on an operating-hour basis, total tonnes processed were constrained by lower availability during October and November. Plant availability was affected by a planned four-day shutdown for the first full ball mill reline in October, as well as a ball mill motor failure in early November. The company said design and construction deficiencies linked to its former engineering, procurement and construction contractor were being systematically addressed, with availability improving to more than 93% in December. Average throughput for the quarter was 15 466 t/d, or 94% of design capacity.

Looking ahead, Artemis has guided 2026 gold production of between 265 000 oz and 290 000 oz at all-in sustaining costs of $925/oz to $1 025/oz, placing Blackwater among the lowest-cost operations in the sector.

Sustaining capital is expected to be about $5-million, with a further $15-million to $20-million earmarked for resource expansion and exploration.

“Our focus remains on further improving mill throughput and availability, and we continue to target mill throughput levels at 10% above design capacity on a sustainable basis in advance of the Phase 1A expansion, which we expect will increase annual design throughput by 33% to eight-million-tonnes a year by the fourth quarter of 2026,” Andres said.

The company is also advancing its Expanded Phase 2 (EP2) project, which is expected to lift throughput to 21-million tonnes a year by the end of 2028, more than tripling current capacity.

“We are also advancing the EP2 project, which we expect to fund from operating cash flow and will see us further increase annual throughput to 21-million tonnes a year by the end of 2028, which is more than triple our current capacity. This is an exciting time for Artemis Gold as we transform Blackwater into one of the three largest single gold mines in Canada,” Andres added.

Total growth capital for 2026 is forecast at between $670-million and $745-million, including $95-million to $100-million to complete the Phase 1A expansion, $385-million to $435-million to advance EP2, and $190-million to $210-million for other expansion capital, mainly related to tailings, water infrastructure and additional mining equipment. Artemis said the growth programme would be funded from operating cash flow.

The Phase 1A expansion is expected to be completed, commissioned and fully ramped up during the fourth quarter of 2026, with an estimated eight-day plant shutdown required at the end of the third quarter to tie in major components. EP2 early works are under way, with major construction expected to start before the end of the third quarter of 2026.

Artemis will release full 2025 production and financial results on February 18.