RIO2 Reports ON Fenix GOLD MINE Progress
RIO2 REPORTS ON FENIX GOLD MINE PROGRESS
For Immediate Release December 16, 2024
Vancouver, BC - Rio2 Limited (“Rio2” or the “Company”) (TSXV: RIO; OTCQX: RIOFF; BVL: RIO), after
completing the Company’s highly successful debt and equity financing announced on October 21,
2024, provides an update on the progress made by its Chilean subsidiary, Fenix Gold Limitada (“Fenix
Gold”), which is currently constructing the Fenix Gold Mine located in the Maricunga Gold Belt of the
Atacama Region, in Chile. Advancements include the commencement of hiring of our Chilean
workforce, mobilization of civil construction and plant construction contractors, completion of civil
works for the processing plant site and commencement of construction of the heap leach pad and
adjoining PLS pond. The Company has also entered a fixed price contract totaling US$49M (plus GST)
with its plant construction contractor, HLC Chile SPA, for the construction of the Fenix Gold Mine
adsorption, desorption, and gold recovery (“ADR”) plant, associated infrastructure and site electrical
distribution lines. Long lead items such as gensets, principal pumps, and electrical switchgear facilities
have been purchased directly by Fenix Gold. Rio2 will provide guidance in January 2025 for the
construction schedule and associated budget, along with a projection of when the first gold
production is expected to be achieved.
Andrew Cox, President & CEO, commented, “Since closing our debt and equity financing in October,
we have made excellent progress on all fronts related to the construction of our Fenix Gold Mine. The
execution of the mine built on our proven alliance approach with our civil contractor and plant
contractor is progressing as planned and the negotiation of a fixed price contract for the plant
construction is a positive bonus to managing and controlling our construction budget. We are
extremely happy to see the positive impact that we are making to employment in the Atacama Region
and look forward to providing regular quarterly updates through construction in 2025.”
IMPLEMENTATION OF SAP S/4HANA CLOUD
Rio2 also announces that it has selected the GROW with SAP solution for Enterprise Resource Planning
(“ERP”) and Syntax as its implementation partner. This ERP software solution will be used by Rio2 to
manage our core business processes, including finance, human resources, supply chain and
procurement, all within a unified view of activity and single source of information. The Grow with SAP
solution will help streamline business operations by centralizing data across different departments
and disciplines, allowing for better decision making and improved efficiency.
Syntax will work with Rio2 to implement SAP S/4HANA Cloud through GROW with SAP. Rio2 selected
Syntax as its implementation partner due to our confidence in Syntax’s ability to execute the
implementation successfully, as well as Syntax’s significant expertise in and understanding of the
mining industry.
“Digital transformation is not a nice-to-have; it’s necessary for successfully operating in today’s mining
industry,” said Michelle Smith, Vice-President, Syntax Mining Practice, “Syntax is proud to work with
Rio2 to streamline processes, enhance data visibility, and enable smarter decisions while accelerating
their transformation journey.”
The implementation of SAP S4/H ANA Cloud will support Rio2 at the mine site and in its corporate
offices. On-site, SAP S/4 HANA Cloud will support the operations team during the construction of the
Fenix Gold Mine and afterward when Fenix is in production; off- site, the implementation will allow
Rio2’s corporate offices to analyze vital data, as well as optimize financial reporting. The Company is
targeting a “go-live” of SAP S/4HANA Cloud in Q2 2025.
“As we move towards the next phase of our Company with the construction of the Fenix Gold Mine,
we are really excited about the implementation of SAP S/4 HANA Cloud. It’s a scalable solution that
will grow alongside us, improving both our operations and finance functions,” says Kathryn Johnson,
EVP – CFO and Corporate Secretary. “We are also pleased to be working with Syntax on this project.
We felt that Syntax’s long -standing experience and reputation for excellence working with mining
companies across Canada, the US, and globally made them a great match for our business.”
Rio2 is familiar with SAP® capabilities, as its mining contractor also leverages SAP® tools in its business
activities. This existing synergy between Rio2 and its mining contractor should result in increased
efficiency, reducing costs and directly contributing to operational effectiveness.
ABOUT SYNTAX
Syntax provides comprehensive technology solutions and trusted professional, advisory, and
application management services to power businesses’ mission-critical applications in the cloud. With
50 years of experience and 800+ customers around the world, Syntax has deep expertise in
implementing and managing multi-ERP deployments in secure private, public, hybrid, or multi -cloud
environments. Syntax partners with SAP, Oracle, JD Edwards, AWS, Microsoft, and other global
technology leaders to ensure customers’ applications are seamless, secure, and at the forefron t of
enterprise technology innovation. Learn more about Syntax at www.syntax.com.
SAP, SAP S/4HANA, GROW with SAP, and SAP products and services mentioned herein as well as their
respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in
Germany and other countries. See http://www.sap.com/corporate -en/legal/copyright/index.epx for
additional trademark information and notices.
IMPLEMENTATION OF VRIFY 3D VISUALIZATION
Rio2 has been working closely with VRIFY Technology Inc (“VRIFY”) over the past few months and
recently implemented the VRIFY system to help showcase the Company’s Fenix Gold Project as it
progresses through construction into production over the next 12 to 24 months. Rio2 believes the
VRIFY platform will provide enhanced communication and visualization of our Fenix Gold Mine setting,
scale, and historical data as the project advances.
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
ABOUT VRIFY
VRIFY Technologies is revolutionizing mineral exploration through its AI- assisted mineral discovery
platform, which delivers proven results. Combining proprietary AI algorithms with one of the
industry's largest datasets, VRIFY helps exploration companies uncover valuable mineralization in their
existing data without drilling new holes. The Company 's vision transformer technology identifies
complex patterns that traditional methods and other AI tools miss, while its advanced visualization
capabilities enable clients to communicate discoveries to stakeholders effectively. Led by industry
veterans and backed by proven success cases, VRIFY is transforming how forward -thinking mining
companies approach mineral discovery in the Age of AI. Learn more at VRIFY.com
FENIX GOLD PROJECT
The Fenix Gold project 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 on and designed in 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 and will generate employment
for at least 1,200 people during the construction phase and 550 people during the 17-year operations
phase. The mine being contemplated at the Project 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
Ronoel Vega, Min. Eng., MMBA, FAusIM M, 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; 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 implementation of an
ERP solution and its expected benefits 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 cer tain 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 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 availability and cost of financing, labor and services; the successful
implementation of the selected ERP solution 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 express ly 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.