Rio2 Begins Construction at Fenix Gold Mine in Chile
Feb 7, 2025

Rio2 Begins Construction at Fenix Gold Mine in Chile

Rio2 Limited (TSXV: RIO) has announced the commencement of construction on its Fenix gold mine situated in the Maricunga gold belt in Chile's Atacama region. This development follows the successful completion of permitting four months prior and securing necessary funding for the project. For further information, visit the original article here.

According to IndexBox data, the Fenix gold mine stands out as one of the largest undeveloped gold oxide, heap leach projects in the Americas. It hosts an NI 43-101 measured and indicated resource of nearly 4.8 million ounces. With a detailed feasibility study concluded in 2023, the Fenix mine is projected to produce approximately 1.3 million ounces of gold over its 17-year lifespan, translating to an annual output of 81,900 ounces.

Financial evaluations have placed the after-tax net present value of the mine at $210.3 million, employing a 5% discount rate, with an internal rate of return reported at 28.5%. The construction capital expenditure (capex) is estimated at $122 million, supported by the funding package initiated in late October. This includes a $50 million pre-paid gold deposit from Wheaton Precious Metals, a C$63 million ($44 million) public offering, and a C$5 million ($3.5 million) private placement with Wheaton.

As stated by Rio2's executive chairman, Alex Black, in a press release dated October 21, the acquired financing ensures a stable pathway to bringing Fenix to production. The financing framework emerged from an intensive and strategic process aimed at securing the best possible financial backing for the mining venture.

The Fenix project, requiring a total investment of $325 million inclusive of sustaining capital, is backed by Rio2's arrangement with Wheaton, calling for a subsequent $50 million tranche later in the year and access to a $20 million standby loan. Wheaton CEO Randy Smallwood has praised Fenix as a "highly attractive, scalable gold project" within a renowned mining territory, positioned near Kinross Gold's La Coipa and Maricunga mines, as well as Hochschild's Volcan gold project.

Rio2 anticipates the completion of Fenix mine construction by November 2025, with the first gold production slated for January 2026.

Source: IndexBox Market Intelligence Platform

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    10. Production Volume And Growth
    11. Exports And Growth
    12. Export Prices And Growth
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    14. Per Capita Consumption
    15. Imports And Growth
    16. Import Prices
    17. Production, In Physical Terms, 2012–2024
    18. Production, In Value Terms, 2012–2024
    19. Production, By Country, 2024
    20. Production, In Physical Terms, By Country, 2012–2024
    21. Imports, In Physical Terms, 2012–2024
    22. Imports, In Value Terms, 2012–2024
    23. Imports, In Physical Terms, By Country, 2024
    24. Imports, In Physical Terms, By Country, 2012–2024
    25. Imports, In Value Terms, By Country, 2012–2024
    26. Import Prices, By Country, 2012–2024
    27. Exports, In Physical Terms, 2012–2024
    28. Exports, In Value Terms, 2012–2024
    29. Exports, In Physical Terms, By Country, 2024
    30. Exports, In Physical Terms, By Country, 2012–2024
    31. Exports, In Value Terms, By Country, 2012–2024
    32. Export Prices, 2012–2024

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