RIO2 Provides Fenix GOLD MINE Construction Update
RIO2 PROVIDES FENIX GOLD MINE CONSTRUCTION UPDATE
For Immediate Release January 13, 2025
Vancouver, BC - Rio2 Limited (“Rio2” or the “Company”) (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) , is
providing an update on construction activities at its Fenix Gold Mine located in the Maricunga Gold
Belt of the Atacama Region, in Chile.
OVERVIEW
Pre-construction activities commenced at the Fenix Gold Mine in 2022 prior to the Environmental
Impact Assessment (“EIA”) for the project being rejected by the Chilean environmental regulators.
Those activities included:
• ordering and securing of long lead items for the construction of the adsorption, desorption,
and gold recovery (“ADR”) plant and associated infrastructure
• fabrication of ADR plant components such as tanks and ADR plant foundation footings
• construction of a 565-person camp and associated mess and office facilities at the Lince
infrastructure site, located 20km from the mine site
• water loading facilities at the Nueva Atacama water treatment facilities located in Copiapo
The project’s EIA was subsequently approved in December 2023 following a successful 18 -month
appeal process.
The Company recommenced construction activities at the Fenix Gold Mine in October 2024 after
successfully completing a debt and equity financing for the construction of the mine announced on
October 29, 2024.
The projected construction capex for 2025 is estimated to be USD 122 M (excluding Chilean VAT tax
which is refundable) with construction expected to be completed in November 2025. First gold
production is currently guided for January 2026.
PLANT SITE
Bulk earthworks at the plant site have been completed and concrete bases for the footing s of the
processing plant have been poured . The ADR plant will be housed within a steel framed building
cladded with modular thermo-acoustic panels.
LEACH PAD
Earthworks have commenced on the leach pad stability platform , which forms the base of the Phase
1 leach pad. The leach pad has been designed to be built in four phases over the 17 -year mine life of
the 20,000 tonnes per day operations.
PREGNANT LEACH SOLUTION (“PLS”) POND
Excavation earthworks for the PLS pond ha ve commenced adjacent to the ADR plant. The PLS pond
will be lined with a double HDPE geomembrane liner system and have an installed capacity of 28,000
cubic metres. As determined by water balance modelling in the 2023 Fenix Gold feasibility study, a
larger major events pond is currently planned to be built in year 6 of the mine operation.
PERSONNEL
The recruitment activities for the Fenix Gold Mine have focused on hiring key personnel for
construction activities and future mine operation roles. Personnel numbers at the Fenix Gold Mine
are increasing and, currently, over 531 staff and contractors work on -site. At the end of Q4 2024,
approximately 50% of the workforce were from the Atacama region , and 16% of on-site personnel
were women.
SAFETY
At the end of Q4 2024, the project achieved 161,917 person -hours worked with no lost time injuries
reported.
GRADE CONTROL DRILLING AND GEOPHYSICAL SURVEY
In February, the Company will commence a 12,000m grade control drilling program focused on the
first three years of production planned from the Fenix South and Fenix North pit areas. Fenix South
will be the first area drilled during the months of February, March and April, and Fenix North will be
drilled in October and November. The Fenix South pit will be the principal source of ore for the first
year of mine production.
From February to March the C ompany will complete a survey of 25,000 meters of CSAMT
electromagnetic lines. This survey will help the geological team identify silicified zones associated with
black banded veins, which are the main gold host at the Fenix Gold deposit . The geophysical targets
generated from this work will allow the Company to focus its future exploration drilling campaigns
with the objective to grow the mineralized resource at Fenix Gold. Resource expansion drilling is
currently planned to occur once gold production has commenced at the mine.
Rio2 is also pleased to announce that Enrique Garay has recently returned to the Company as Senior
Vice President - Geology to lead and oversee the Fenix Gold geological team in preparation for mining
toward the end of 2025 and future exploration.
MINE EXPANSION STUDY & ASSOCIATED EIA
A preliminary internal study completed by the Rio2 technical team has indicated that the Fenix Gold
Mine has the potential to be expanded from its first phase 20,000 tonnes per day ore mining rate to
around 80,000 tonnes per day. Increasing the ore mining rate to this level could see gold prod uction
rise from an initial rate of approximately 100,000 oz per annum to a target range of 250,000 – 300,000
oz per annum. To quantify and justify this potential expansion, the Company has initiated a mine
expansion study with a target completion date by the end of 2025. Long-term water options will be
assessed for the study and the most optimal water strategy will be selected and form a base case for
project economics. To put this potential expansion case on a fast track to a construction decision, Rio2
has recently initiated baseline studies for an EIA study on the project, which is anticipated to be ready
for review by the environmental regulators in the Atacama Region by Q4 2026. As most of the required
infrastructure for the expanded project (apart from water which is expected to be provided by a third-
party provider) is within the existing footprint of the currently approved EIA , the Company expects
the EIA process to advance relatively smoothly. Updates will be provided as the expansion study and
EIA progress.
Andrew Cox, President & CEO, commented, “Site activities at the Fenix Gold Mine continue advancing
to plan. We are delighted with the team we are putting together and the milestones achieved so far.
We look forward to continued success as we prepare the mine for first gold production in January
2026.”
Photos of the construction activities can be found at (https://www.rio2.com/media/photos).
To view a 3D VRIFY version of Rio2’s corporate presentation please click the following link:
https://vrify.com/decks/17439 or visit the Company’s website at www.rio2.com
STOCK OPTION GRANT
The board of directors of the Company has approved the grant of an aggregate of 6,310,000 incentive
stock options (the “Options”), pursuant to the Company’s Stock Option Plan, to a total of 72 directors,
officers and employees of the Company , its Peruvian subsidiary , Rio2 S.A.C., and its Chilean
subsidiaries, Fenix Gold Limitada and Lince S.A. The Options are exercisable at a price of $0.70 per
share (based on a 10% premium over the closing price of C$0.63 on January 10, 2025) and will expire
five years from the grant date. The Options represent the Company’s annual grant of long-term
incentives consistent with the Company’s regular yearly compensation.
FENIX GOLD PROJECT
The Fenix Gold P roject is one of the largest undeveloped gold oxide, heap leach projects in the
Americas, hosting a Measured and Indicated mineral resource (as such term is defined in National
Instrument 43-101 -Standards of Disclosure for Mineral Projects, “NI 43-101”) of 4.8 million ounces of
gold which the Company believes will make a positive contribution to the Atacama Region and Chile.
The Project is an example of modern gold mining where a full complement of technical,
environmental, and social considerations has been consulted and designed from the outset. The
Project represents a significant investment in the gold mining business in Chile by a junior mining
company of approximately US$235M of initial and sustaining capital, generating employment for at
least 1,200 people during the construction phase and 550 people during the 17-year operations phase.
The mine being contemplated will be a run-of-mine heap leach operation; no crushing or tailings
storage facilities are required, thereby minimizing the overall impact and footprint of the Project.
The scientific and technical content of this news release has been reviewed, approved and verified by
Enrique Garay, MSc P.Geo/FAIG who is a QP under NI 43-101. For additional information regarding
the Project, including key parameters, assumptions and risks associated with its development, see the
independent technical report entitled “NI 43-101 Technical Report on the Feasibility Study for the
Fenix Gold Project” (the “Feasibility Study”) pursuant to National Instrument 43-101 Standards of
Disclosure for Mineral Projects (“NI 43-101”). The Feasibility Study is dated October 16, 2023, with an
effective date of October 16, 2023, a copy of which document is available under Rio2’s SEDAR+ profile
at www.sedarplus.ca.
ABOUT RIO2 LIMITED
Rio2 is a mining company with a focus on development and mining operations with a team that has
proven technical skills as well as successful capital markets track record. Rio2 is focused on taking its
Fenix Gold Project in Chile to production in the shortest possible timeframe based on a staged
development strategy. Rio2 and its wholly owned subsidiary, Fenix Gold Limitada, are companies with
the highest environmental standards and responsibility with the firm conviction that it is possible to
develop mining projects that respect the three pillars (Social, Environment, Economics) of responsible
development. As related companies, we reaffirm our commitment to apply environmental standards
beyond those that are mandated by regulators, seeking to protect and preserve the environment of
the territories that we operate in.
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively
“forward-looking information”) within the meaning of applicable securities laws relating to Rio2’s
development of the Fenix Gold Project and other aspects of Rio2’s future operations and plans. In
addition, without limiting the generality of the foregoing, this news release contains forward-looking
information pertaining to the following: the development of a mine at the Project and related
construction activities; the expected capital required for such mine; the expected timing of the first
pour of gold; estimated indicated and measured gold resources; expected mine life; development and
operating plans and expenditures; certain anticipated economic benefits of a mine at the Project to
the local region; the potential to expand production from the first stage mining rate and associated
gold production along with the timing for the completion of related studies and approvals; and other
matters ancillary or incidental to the foregoing.
All statements included herein, other than statements of historical fact, may be forward-looking
information and such information involves various risks and uncertainties. Forward -looking
information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”,
“continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”,
“could”, “might”, “should”, “believe” and similar expressions. The forward- looking information is
based on certain key expectations and assumptions made by Rio2’s management, including but not
limited to: expectations concerning prevailing commodity prices, exchange rates, interest rates,
applicable royalty rates and tax laws; capital efficiencies; legislative and regulatory environment of
Chile; future mining and production rates and estimates of capital and operating costs; expectations
regarding the availability of debt financing; estimates of reserves and resources; anticipated timing
and results of capital expenditures; the sufficiency of capital expenditures in carrying out planned
activities; results of operations; performance; the anticipated timing and results of expansion studies
and related approvals; the availability and cost of financing, labor and services; and Rio2’s ability to
access capital on satisfactory terms.
Rio2 believes the expectations reflected in these forward -looking statements are reasonable, but no
assurance can be given that these expectations will prove to be correct and such forward-looking
statements in this news release should not be unduly relied upon. A description of assumptions used
to develop such forward-looking information and a description of risk factors that may cause actual
results to differ materially from forward-looking information can be found in Rio2's disclosure
documents on the SEDAR+ website at www.sedarplus.ca. These risks and uncertainties include, but are
not limited to: risks and uncertainties relating to the completion of debt and equity financing for the
construction phase of the mine, market conditions and management’s ability to anticipate and
manage the factors and risks referred to herein.
Forward-looking statements included in this news release are made as of the date of this news release
and such information should not be relied upon as representing its views as of any date subsequent to
the date of this news release. Rio2 has attempted to identify important factors that could cause actual
results, performance or achievements to vary from those current expectations or estimates expressed
or implied by the forward-looking information. However, there may be other factors that cause results,
performance or achievements not to be as expected or estimated and that could cause actual results,
performance or achievements to differ materially from current expectations. Rio2 disclaims any
intention or obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly required by applicable securities
legislation.
To learn more about Rio2 Limited, please visit: www.rio2.com or Rio2's SEDAR + profile at
www.sedarplus.ca.
ON BEHALF OF THE BOARD OF RIO2 LIMITED
Alex Black
Executive Chairman
Email: [email protected]
Tel: +51 99279 4655
Kathryn Johnson
Executive Vice President, CFO & Corporate Secretary
Email: [email protected]
Tel: +1 604 762 4720
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts the responsibility for the adequacy or accuracy of this
release.