Rio2 Reports Exciting Progress on Fenix Gold Mine Construction

Rio2 Limited Shares Construction Progress at Fenix Gold Mine

Vancouver-based mining company Rio2 Limited (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) has recently provided a detailed update regarding the construction progress at its Fenix Gold Mine, situated in the Maricunga Gold Belt of Chile. This milestone marks a significant step forward for the company as it moves towards gold production.

Overview of Construction Activities

Initial construction efforts began well ahead of the Environmental Impact Assessment (EIA) approval, which experienced setbacks. Nonetheless, vital pre-construction activities were initiated prior to the EIA's rejection in 2022. These activities included:

• Acquisition and securing essential long lead items necessary for constructing the adsorption, desorption, and gold recovery (ADR) plant.
• Manufacturing key components for the ADR plant, such as tanks and foundational footings.
• Setting up a camp for over 500 personnel, complete with offices, located 20 kilometers from the mining site.
• Developing water loading facilities at Nueva Atacama water treatment site situated in Copiapo.

After a lengthy and successful appeal process lasting 18 months, the project's EIA was ultimately approved in December 2023, paving the way for a resumption of construction.

Current Construction Status

Excitingly, construction activities recommenced in October 2024, following successful debt and equity financing announced on October 29, 2024. The projected capital expenditure for 2025 is approximately USD 122 million (excluding refundable Chilean VAT tax), with completion anticipated by November 2025. First gold production is expected as early as January 2026.

Plant Site Developments

At the plant site, bulk earthworks have been finalized, and the concrete bases essential for the processing plant footings have been poured. The ADR plant will be housed in a modern steel structure equipped with modular thermo-acoustic panels.

Leach Pad Construction

Construction on the leach pad stability platform has progressed significantly, laying the groundwork for phase one of the leach pad, to be developed over the projected 17-year lifespan of the mine, which will handle 20,000 tonnes per day.

Progress on PLS Pond and Future Projections

Excavation works for the Pregnant Leach Solution (PLS) pond are underway adjacent to the ADR plant. This pond will feature a robust double HDPE geomembrane liner system, with an impressive capacity of 28,000 cubic metres. Based on water balance modeling from the recent feasibility study, there are plans to construct a larger events pond in the sixth year of mining operations.

Workforce and Safety Initiatives

Recruitment efforts are ongoing, with a focus on acquiring key personnel not just for construction but also for future mining operations roles. Currently, the workforce comprises over 531 staff and contractors on-site, with a notable 50% hailing from the surrounding Atacama region. Additionally, female representation at the mine stands at 16%, reflecting a commitment to diversity.

Safety remains a top priority, as evidenced by the achievement of over 161,917 person-hours worked without any reported lost-time injuries as of the end of Q4 2024.

Upcoming Drilling Programs

Looking ahead, Rio2 is set to launch an extensive 12,000-meter grade control drilling program in February, focusing on the Fenix South and Fenix North pit areas. It is in the Fenix South area where initial drilling efforts will take place, paving the way for ore supply in the project's first year.

Additionally, a comprehensive geophysical survey spanning 25,000 meters will be conducted, aiming to identify gold-hosting silicified zones, which will guide future drilling campaigns designed to expand the mineralized resource.

Mine Expansion Potential

In a promising revelation, a preliminary study suggests that the Fenix Gold Mine could potentially scale up its operations from the initial 20,000 tonnes per day to a remarkable 80,000 tonnes. This could catapult annual gold production from around 100,000 ounces to a robust 250,000 to 300,000 ounces. To validate this expansion potential, Rio2 has launched a mine expansion study, targeting completion by the end of 2025. The company is also assessing long-term water access strategies.

Looking Forward

The team at Rio2 is enthusiastic about the progress made and remains focused on reaching the milestone of first gold production planned for January 2026. Andrew Cox, President & CEO, expressed confidence in the team's capabilities and the project's trajectory.

Frequently Asked Questions

What is the estimated capital expenditure for 2025?

The projected capital expenditure for 2025 is around USD 122 million, excluding refundable VAT.

When is the first gold production expected?

First gold production is anticipated in January 2026.

What safety milestones have been achieved at the site?

As of the end of Q4 2024, over 161,917 person-hours were worked without lost-time injuries reported.

How many employees currently work at the Fenix Gold Mine?

Currently, over 531 staff and contractors are employed on-site, with significant recruitment ongoing.

What are the future plans for the Fenix Gold Mine?

Future plans include a mine expansion study aiming to boost production from 20,000 tonnes per day to 80,000 tonnes.

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