Vancouver and Toronto-listed Rio2 Limited has made significant progress at its Fenix Gold Project in the Maricunga belt in Chile’s Atacama region, with construction 41 per cent complete as of June 30, keeping the company on track for first gold production in January 2026.
The company recently received a US$50 million (A$78 million) third prepayment instalment from United States-based precious metals investment firm Wheaton Precious Metals International, under a precious metals purchase agreement for Fenix.
The funding stream has been a continued strong endorsement of Rio2’s construction and development of its massive oxide-hosted, heap leach gold project. The latest prepayment is a key marker along the project’s path towards launching mine production by the end of the year.
From October 2024 to June this year, Rio2 has invested $56.4 million in the venture against a $57.8 million budget, excluding corporate overheads and 2022 pre-construction costs.
The 1514-strong workforce is 94 per cent Chilean, including 41 per cent who hail from the surrounding Atacama, highlighting the company’s strong emphasis on local employment.
Construction milestones include the installation of 12.7 hectares of geosynthetics and 4 hectares of over-liner material on a leach pad, which the company expects will carry production through the first six months.
The main haul road is 90 per cent complete, while a second haul road is 40 per cent complete. Both routes are critical for connecting the Fenix South mine pit to the leach pad.
At the adsorption, desorption and recovery plant, work has progressed on the adsorption areas, reagent handling and storage facilities, while the process plant’s structural assembly is almost complete.
Cladding is 90 per cent finished and the first of three electrical switch rooms is in transit from the nation’s capital, Santiago.
Additionally, Rio2 has nearly finished grade control drilling aimed at the first three years of mine production. An updated mineral resource estimate is expected by September 2025, which will help the company refine its mine planning.
Key upcoming milestones include kicking off ore stacking, finalising the pregnant leach solution pond and completing the electrical switch rooms this month.
The pond is a key component of Rio2’s heap leaching operation and will collect solution enriched with dissolved metals after it percolates through the crushed ore on a leach pad.
Other key milestones will include commissioning the ADR plant in November and completing a mine expansion study by the end of the year.
The Fenix Gold Project hosts a non-JORC measured and indicated resource of 4.8 million ounces of gold. The project is designed as a run-of-mine heap leach operation, which minimises its environmental impact by eliminating crushing or tailings facilities.
The project has an estimated US$235 million in initial and sustaining capital and will employ 1200 people during construction and 800 during its 17-year operational phase, which will significantly benefit the Atacama region.
With construction on budget, a robust resource base and Wheaton’s strong financial backing, Rio2 is poised to deliver a modern, sustainable gold mine.
The Fenix Gold Project is set to become a cornerstone of economic growth in Chile, with first gold in January marking a transformative milestone for the company and the region.
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By Doug Bright
