Artemis Gold's Blackwater Mine Hits Record Recovery Amid Setback

VANCOUVER, BC – April 09, 2026 – Artemis Gold Inc. demonstrated significant operational resilience at its new Blackwater Mine, announcing Q1 2026 production of 61,923 ounces of gold despite an unplanned week-long shutdown in March. The company's ability to navigate this early challenge while simultaneously achieving record metallurgical performance has bolstered confidence in its aggressive growth trajectory, with full-year production guidance remaining firmly intact.

Navigating Early Operational Hurdles

The first quarter of 2026 presented an immediate stress test for the Blackwater facility, which only commenced commercial production in May 2025. A critical gearbox failure on the ball mill forced a seven-day halt to processing operations in March. However, the company's preparedness and swift response minimized the impact. A replacement gearbox was available on-site, allowing for a quicker-than-anticipated repair and restart.

During the shutdown, mining operations continued uninterrupted, with ore being stockpiled for future processing. This strategy ensured that the mining fleet remained productive and created a reserve of material to be fed into the mill once it was back online. Management also used the unplanned downtime opportunistically, bringing forward maintenance activities that were originally scheduled for the second quarter, thereby reducing the need for future planned stoppages.

In a statement, Artemis Gold CEO Dale Andres highlighted the team's effective response. "We recovered quickly from an unexpected shutdown of the mill in March. Both mining and milling operations are currently performing very well," he commented. This quick recovery was crucial in preventing a more significant disruption to the mine's ramp-up schedule.

Record Recoveries Signal Strong Performance

Despite the mechanical setback and reduced throughput, the mine's processing plant delivered exceptional results. Gold recovery from the mill reached a record 90.6% during the quarter, a significant improvement from the 88.1% achieved in the fourth quarter of 2025. This metric is a critical indicator of a mill's efficiency in extracting gold from the processed ore.

The company attributed the record-breaking recovery to sophisticated ore blending strategies and continuous optimization efforts within the plant. Processing 1.32 million tonnes of ore with a strong average feed grade of 1.59 grams per tonne (g/t) gold also helped to offset the lost production time. The ability to enhance metallurgical performance even during a challenging ramp-up phase suggests a robust and well-understood ore body and a highly capable technical team.

"The mill achieved record gold recoveries during the first quarter, and optimization opportunities to further improve are continuing," Andres added, signaling that further efficiency gains may be on the horizon. For investors and analysts, this strong underlying performance is a key positive takeaway, demonstrating that the mine's core processing capabilities are exceeding expectations.

Ambitious Expansion on the Horizon

With the initial operational challenge managed, Artemis Gold is firmly focused on its future. The company reaffirmed its full-year production guidance of 265,000 to 290,000 ounces of gold, expressing confidence that the lost output from Q1 can be made up in the coming quarters. This confidence is underpinned by a multi-phased expansion plan set to transform Blackwater into one of Canada's largest gold mines.

The company is advancing two key projects, which it plans to fund from its own operating cash flow, a strategy that avoids shareholder dilution. The first, Phase 1A, is already underway and aims to increase the plant's processing capacity by 33% to 8 million tonnes per annum (Mtpa) by the end of 2026. This relatively low-cost expansion is expected to pay for itself in under six months.

More significant is the Expanded Phase 2 (EP2) project, which will see the mine's annual throughput more than triple to 21 Mtpa before the end of 2028. This massive scale-up is projected to increase annual gold production to over 500,000 ounces, placing Blackwater in the top tier of Canadian gold producers.

"Looking ahead, we expect improved mill throughput and higher gold production for the next three quarters and remain well positioned to achieve our full-year production guidance," stated Andres. "We are also continuing to advance the Phase 1A expansion and the Expanded Phase 2 ('EP2') projects, which we expect to fund from operating cash flow."

A Golden Backdrop for Growth

Artemis Gold's ambitious plans are unfolding against a highly favorable macroeconomic backdrop. Gold prices have remained robust throughout early 2026, with many financial institutions forecasting sustained strength. Analysts at firms like JPMorgan and Goldman Sachs have projected prices well above current levels, driven by geopolitical uncertainty, central bank buying, and expectations of interest rate cuts.

This high-price environment is critical to Artemis's strategy, as it generates the strong operating cash flow required to self-fund its major expansion projects. Furthermore, the Blackwater Mine is positioned as a low-cost operation, with its 2025 all-in sustaining cost (AISC) guidance in the range of $670-$770 per ounce. This low-cost structure ensures high margins at current gold prices, providing a substantial financial cushion and reinforcing the feasibility of its growth plans.

The combination of a world-class asset, a proven operational team, and a strong gold market provides a powerful tailwind for the company as it moves to unlock the full potential of the Blackwater district. The company has scheduled a conference call and webcast for May 7, 2026, to discuss its Q1 2026 financial and operating results in further detail, which will be released after market close on May 6.