Rio2 Announces Official Start of Construction of Fenix Gold Mine
MWN-AI** Summary
Rio2 Limited has officially commenced construction of its Fenix Gold Mine, located in the Maricunga Gold Belt, Atacama Region, Chile. The groundbreaking ceremony took place on February 6, 2025, and was attended by notable figures including Mining Minister Aurora Williams Baussa and representatives from various government and industry organizations. The project, which aims to tap into one of the largest undeveloped gold oxide heap leach resources in the Americas, is expected to significantly benefit the Atacama region and Chile’s economy.
This announcement follows Rio2’s earlier declaration in January 2025, where they confirmed the resumption of construction activities supported by a successful debt and equity financing initiative. The expected capital expenditure for the Fenix Gold Mine in 2025 is forecasted at USD 122 million, with hopes for construction completion by November 2025 and the first gold production slated for January 2026.
The Fenix Gold Project is projected to hold a mineral resource of 4.8 million ounces of gold. It exemplifies modern mining practices, emphasizing technical, environmental, and social considerations from the outset. The venture entails an approximate total investment of USD 235 million and is anticipated to create over 1,200 jobs during construction and around 550 jobs during its 17-year operational phase. Notably, the mine will employ a run-of-mine heap leach operation, mitigating environmental impact by eliminating the need for crushing or tailings storage facilities.
As a proponent of responsible mining, Rio2 is committed to adhering to high environmental standards, underscoring their dedication to sustainable development practices. The substantial investment and employment prospects surrounding this venture underscore its significance in the mining sector in Chile.
MWN-AI** Analysis
As Rio2 Limited (TSXV: RIO) embarks on the construction phase of its Fenix Gold Mine in Chile, market analysts should closely evaluate the implications of this development for investment strategies in the gold mining sector. The commencement announcement on February 7, 2025, marks a crucial turning point for the company, highlighting the successful completion of debt and equity financing, raising approximately USD 122 million for construction in 2025.
The Fenix Gold Mine is poised to become a significant player in the Americas' gold sector, characterized by a substantial measured and indicated mineral resource of 4.8 million ounces of gold. This positions Rio2 strategically within a growing market, particularly as gold often serves as a hedge against economic uncertainties. Investors may find value in the company’s commitment to a sustainable and responsible mining approach, which could enhance its reputation and attract socially-conscious investors.
From a construction and operational timeline perspective, completion by November 2025 and the guidance for first gold production in January 2026 provides a clear roadmap for shareholders and stakeholders. Anticipating that the construction phase will generate approximately 1,200 jobs can be an attractive proposition for local economic development, fostering goodwill that may be beneficial for operations.
However, potential investors should consider the volatility inherent in the mining sector. While the project’s environmental and social responsibility stance might mitigate some operational risks, fluctuations in gold prices and regulatory changes in Chile could impact profitability. Thus, investors should maintain a diversified portfolio while monitoring Rio2’s progress and market conditions closely. Overall, the Fenix Gold Mine construction marks a pivotal opportunity for Rio2 and could represent a valuable investment opportunity contingent upon ongoing developments in the gold market and operational execution.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
VANCOUVER, British Columbia, Feb. 07, 2025 (GLOBE NEWSWIRE) -- Rio2 Limited (“Rio2” or the “Company”) (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) announces today the celebration of the official start of construction of its Fenix Gold Mine located in the Maricunga Gold Belt of the Atacama Region. The event held on February 6, was attended by the Honorable Aurora Williams Baussa, Minister of Mining; Mr. Mario Silva Álvarez, Deputy Governor of Atacama; Mr. Jorge Riesco Valdivieso, President of SONAMI (Chilean National Mining Society); representatives of the Colla Indigenous Communities; Regional Ministerial Secretaries; representatives of Mining and Industry Guilds and high authorities from InvestChile, CORPROA (The Corporation for the Development of the Atacama Region), and SERNAGEOMIN (National Service of Geology and Mining).
The event included remarks from the participating authorities and Andrew Cox, Rio2’s President & CEO.
As announced in a press release dated January 13, 2025, 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.
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 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.
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 a 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.?
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: alex.black@rio2.com
Tel: +51 99279 4655
Kathryn Johnson
Executive Vice President, CFO & Corporate Secretary
Email: kathryn.johnson@rio2.com
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.
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/9c9ec3c0-82e6-46c1-a3f4-6d32f575497e
https://www.globenewswire.com/NewsRoom/AttachmentNg/55c939e1-002d-45c6-890c-ae53c1a78c2d
https://www.globenewswire.com/NewsRoom/AttachmentNg/54976810-fb13-415c-a95c-8c54c78a3789
https://www.globenewswire.com/NewsRoom/AttachmentNg/0bb2f807-1e58-41ff-83d2-a7dbea34527a
FAQ**
How does Rio2 Limited RIO:CC plan to ensure environmental sustainability in the construction and operation of the Fenix Gold Mine in Chile?
What are the anticipated economic impacts of Rio2 Limited RIO:CC's Fenix Gold Project on the local communities in the Atacama Region?
Can you provide insights on the financing structure that supported the recommencement of construction activities for Rio2 Limited RIO:CC's Fenix Gold Mine?
What measures has Rio2 Limited RIO:CC implemented to engage with the Colla Indigenous Communities during the Fenix Gold Project's development?
**MWN-AI FAQ is based on asking OpenAI questions about Prospector Resources Corp (OTC: RIOFF).
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