Rio2 Limited's Fenix Gold Project Construction Update
Rio2 Limited (“Rio2” or “the Company”) (TSX: RIO; OTCQX: RIOFF; BVL: RIO) has provided an encouraging update regarding the construction of its 100% owned Fenix Gold Project. As of the conclusion of Q3, progress on the project reached an impressive 63% completion, keeping the timeline for the initial gold production on track for January 2026.
Key Construction Highlights
Over the period from November 2024 to September 30, 2025, several key highlights underscore the project's advancement:
Health and Safety Commitments
Rio2 emphasizes safety as a core value, with a workforce tallying 1,865,791 person-hours put into the project thus far. However, they have recorded three Lost Time Incidents (LTIs), resulting in an LTIFR of 1.61. A Total Incident Frequency Rate (TIFR) has been established at 8.58 as of the end of September.
Budget Adherence and Financial Insights
Financially, Rio2 has maintained a tight control over project expenses, with total expenditures from November 2024 amounting to $86.7 million, aligning closely with the budget of $86.6 million. This figure does not include corporate overheads or costs associated with pre-construction efforts in the previous year.
Progress on Construction Activities
The construction of the Fenix Gold Project has seen significant developments during Q3:
Leach Pad Construction
As of late September, the installation of 12.7 hectares of geosynthetics on the leach pad is complete, expected to accommodate six months of production capacity. Furthermore, leach pad construction resumed in October, with an additional 10 hectares projected to be operational before year-end.
Ore Mining and Processing
Mining operations are actively underway, with 87,000 tonnes of ore extracted from the Fenix Central and Fenix South starter pit area as of August. This ore, averaging a gold grade of 0.45 g/t, equates to approximately 1,260 ounces being positioned on the leach pad in anticipation of plant commissioning in the upcoming December and January timeframe.
Infrastructure Developments
The Pregnant Leach Solution (PLS) pond is now finalized and awaits hydrostatic testing, with water trucking initiated to fill it ahead of the leaching circuit commissioning. Recent updates reveal substantial completion of Haul Road 1, while minor works are underway on Haul Road 4. Thus, essential connections from the Fenix South orebody to the leach pad have been established with the design haul roads.
Human Resources and Community Engagement
The project currently employs 1,521 individuals, comprised mainly of Chileans, which constitutes a significant commitment to local employment—with 44% of the workforce from the Atacama Region and 13% being female. This level of engagement showcases Rio2’s dedication to community involvement and economic benefits within the region.
Exploration and Future Direction
Exploration operations have continued with grade control drilling at the Fenix South site recently completed. Preliminary outcomes indicate a notable reconciliation of the grade control model with its reserve model, suggesting robust anticipated recovery rates from the site.
Looking Ahead: Upcoming Milestones
The forthcoming milestones for the project illustrate a clear path to production and include:
- Ongoing filling of the PLS pond
- Commencement of leach process commissioning in November
- Plant commissioning set for December/January
- First gold pour anticipated in January 2026
- Completion of Mine Expansion Pre-feasibility Study in early 2026
Conclusion: The Significance of the Fenix Gold Project
The Fenix Gold Project stands as a cornerstone of Rio2's aspirations, representing one of the largest undeveloped gold oxide projects within the Americas. This venture aims to yield an ample Measured and Indicated mineral resource totaling 4.8 million ounces of gold, fostering economic growth and job creation in the Atacama Region. By leveraging modern mining practices, Rio2 ensures that environmental, social, and economic factors are harmoniously integrated into its development strategy, reaffirming the belief in responsible and sustainable mining operations.
Frequently Asked Questions
What is the current completion percentage of the Fenix Gold Project?
The construction of the Fenix Gold Project is currently 63% complete according to Rio2's latest report.
When is the first gold production expected?
First gold production is anticipated for January 2026.
How many people are employed at the Fenix Gold Project?
Currently, the project employs 1,521 individuals, with a strong emphasis on local hires.
What safety measures are in place at the construction site?
Rio2 has recorded three Lost Time Incidents, working to prioritize health and safety across the project.
What is the expected economic impact of the Fenix Gold Project?
The project is expected to generate significant local employment and contribute positively to the Atacama Region's economy, with 800 long-term jobs during the operational phase.
