Lycopodium secures A$93 million EPCM contract for Blackwater Phase 2 expansion in Canada
Lycopodium Limited (ASX: LYL) has been awarded the Engineering, Procurement and Construction Management (EPCM) contract for Artemis Gold’s Expanded Phase 2 (EP2) Project at the Blackwater Mine in central British Columbia, Canada.
The contract is valued at approximately A$93 million (calculated at an exchange rate of A$1 = 0.985 CAD), sitting within Artemis Gold’s overall EP2 budget. The award continues an established relationship, as Lycopodium prepared EP2’s Feasibility Study, provided Front End Engineering and Design (FEED) services for the new plant, and is already delivering EPCM services for Phase 1A.
For investors, the win represents a material, disclosed-value contract secured by Lycopodium’s Canadian-based business on a tier-one gold project.
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Inside the contract and the Blackwater expansion
The EP2 Project will add 13 Mtpa of throughput capacity. Combined with the Phase 1A project (8 Mtpa), this will lift the Blackwater Mine’s total throughput capacity to 21 Mtpa. At the conclusion of the mine’s multi-phase expansion programme, that capacity is anticipated to make Blackwater one of the three largest gold mines in Canada.
Blackwater is an open-pit truck and shovel gold and silver mine located approximately 160 kilometres southwest of Prince George and 446 kilometres northeast of Vancouver. Commercial production commenced at the mine in May 2025.
Construction is already progressing. EP2 early works activities are well underway, including earthworks for the new plant site. Artemis Gold recently announced the commencement of major works construction, with the first concrete pour for the ball mill foundations completed ahead of schedule.
| Metric | Detail | Investment significance |
|---|---|---|
| Contract type | EPCM | Fee-based services revenue |
| Contract value | ~A$93 million | Adds to revenue backlog |
| EP2 added capacity | 13 Mtpa | Scale of scope |
| Total capacity post-expansion | 21 Mtpa | Potential top-three Canadian gold mine |
| Prior LYL involvement | Feasibility Study, FEED, Phase 1A EPCM | Continuity and delivery familiarity |
What an EPCM contract means for investors
An Engineering, Procurement and Construction Management (EPCM) contract involves a services firm handling the engineering design of a project, procuring the required equipment and materials, and managing the construction process on behalf of the client. The client typically retains ownership of the assets and capital risk, while the engineering firm earns fees for its services.
For a services engineering business like Lycopodium, this structure carries advantages. EPCM work generates fee-based revenue and generally involves lower capital risk than lump-sum, fixed-price contracts. The long duration of a large-scale project can also provide a degree of earnings visibility across the delivery period.
Continuity strengthens that position here. Having already prepared the Feasibility Study, delivered FEED services and provided Phase 1A EPCM, Lycopodium enters the EP2 build with existing familiarity of the project’s scope and technical requirements.
Why the win strengthens Lycopodium’s investment case
The award reflects a repeat-client relationship with Artemis Gold, extending Lycopodium’s involvement across multiple phases of the same asset. Repeat engagements can serve as an indicator of a firm’s delivery track record with a given client.
The Blackwater EP2 award follows an established pattern across Lycopodium’s project portfolio, where early feasibility and FEED involvement has repeatedly converted into full execution mandates; the Tulu Kapi Gold Project contract in Ethiopia, worth A$118 million, is the most prominent recent example of that progression.
Management framed the strategic value in terms of geography and jurisdiction. British Columbia is described by the company as a tier-one mining jurisdiction, and the contract represents a material domestic project delivered by Lycopodium’s Canadian-based business. The engagement adds to the company’s pipeline of global resources projects.
CEO Commentary
“We are very pleased to be given this opportunity to continue to work with Artemis Gold in the further development of the Blackwater Mine. Blackwater is a world-class facility in a tier-one mining jurisdiction, and our involvement in the mine’s expansion is particularly meaningful, given it represents a material domestic project to be delivered by our Canadian-based business,” said Peter De Leo, Managing Director and CEO of Lycopodium Limited.
Project momentum and next steps
Delivery is already in motion at Blackwater. EP2 early works construction is well underway, and Artemis Gold has commenced major works construction on the expansion. The first concrete pour for the ball mill foundations was completed ahead of schedule, an early signal on delivery pace at this stage of the build.
The multi-phase expansion is targeted to bring the mine to 21 Mtpa of total throughput capacity at completion.
Project status snapshot:
-
EP2 early works — underway (earthworks for new plant site)
-
Major works construction — commenced
-
Ball mill foundations — first concrete pour completed ahead of schedule
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Target total capacity — 21 Mtpa
The contract adds to Lycopodium’s positioning as a global integrated engineering firm delivering resources projects across multiple commodity types worldwide.
Beyond gold, the same early-stage-to-execution model is active in battery metals: the Pilgangoora P2000 Expansion engineering contract, worth approximately A$22 million, extends Lycopodium’s multi-year relationship with PLS Group into a lithium spodumene project that could generate a substantially larger construction mandate if a Final Investment Decision is reached.
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