Rio2 preparing to start production at Chile gold project in 2026
Tue Jan 14 2025
Canada’s Rio2 is on track with construction of its Fenix gold project in Chile and looks to invest US$122mn this year in remaining works to complete them in November and start production in January 2026.
The heap leach oxide gold initiative in northern region Atacama’s Maricunga gold belt is expected to produce 100,000oz/y during its 17-year mine life. However, the Vancouver-based company is analyzing an expansion to increase output to 250,000-300,000oz/y, according to a statement.
A key issue in moving towards an investment decision to raise production at the US$235mn gold project (including initial and sustaining capital) is to ensure long-term water availability, since most of the infrastructure required for a possible second phase will be enabled through the current works, Rio2 says.
Among advances to date, there is a camp for 565 people, offices and loading areas for treated wastewater that will be transported by tanker trucks from the Nueva Atacama plant located in Copiapó, 160km away.
Also, earthworks have begun on the leach pad stability platform and the concrete bases for the gold adsorption, desorption and recovery processing plant are already in place.
The latter work falls under a contract with the Chilean subsidiary of HLC Ingeniería y Construcción, which is also in charge of other associated infrastructure, as well as the site's electrical distribution lines, Rio2 said in a statement late December.
Another key contractor is the local unit of Stracon, whose focus is on access roads and installation of platforms, ponds and heap leaching piles.
In addition, Stracon will be responsible for the open pit mining operation.
Having received all key sectoral permits for construction, at the end of October Rio2 announced a financing package of around US$170mn to build the initiative, with a large part provided by Wheaton Precious Metals International.
Confident that the gold deposit has the potential to expand from phase 1, with an ore extraction rate of 20,000t/d to 80,000t/d, the company has begun the environmental impact assessment with a view to filing it by the fourth quarter of next year.
Source: https://www.bnamericas.com