Rio2 Limited (TSXV: RIO, OTCQX: RIOFF, BVL: RIO) has announced significant progress in the construction of its Fenix Gold Mine, located in the Maricunga Gold Belt of Chile’s Atacama Region. Following a successful debt and equity financing round completed in October 2024, Rio2 is actively moving forward with its ambitious project aimed at tapping into one of the largest undeveloped gold oxide heap leach projects in the Americas.
The construction of the Fenix Gold Mine is progressing rapidly, with several significant developments underway. The company has started hiring local workers, aiming to create around 1,200 jobs during the construction phase and 550 positions for the operational phase. Additionally, Rio2 has engaged civil and plant construction contractors, a crucial step in advancing the project, and has secured a fixed-price contract worth $49 million with HLC Chile SPA for constructing the mine’s adsorption, desorption, and gold recovery (ADR) plant. Infrastructure development is also on track, as civil works for the processing plant site have been completed, and construction has commenced on essential components such as the heap leach pad and associated ponds.
Andrew Cox, President & CEO of Rio2, expressed satisfaction with the project’s progress since securing financing. He noted that the collaboration with contractors is proceeding as planned, which will help manage and control construction costs effectively.
In addition to physical construction efforts, Rio2 is embracing digital transformation by implementing SAP S/4HANA Cloud as its Enterprise Resource Planning (ERP) solution. The GROW with SAP solution will centralize core business processes, including finance, human resources, supply chain, and procurement, into a unified system. This move aims to enhance operational efficiency and improve decision-making capabilities across departments.
Syntax has been chosen as the implementation partner due to its extensive experience in the mining sector. The ERP system is expected to go live by Q2 2025, aligning with Rio2’s growth trajectory as it transitions from construction to production.
Kathryn Johnson, EVP, CFO and Corporate Secretary at Rio2, highlighted the importance of this scalable solution in supporting both operational and financial functions during this pivotal phase for the company.
To further support its communication strategy during the mine’s development, Rio2 has partnered with VRIFY Technology Inc. to implement a 3D visualization platform. This tool will provide stakeholders with an interactive view of the Fenix Gold Project’s progress over the next 12 to 24 months. By enhancing visibility into project details and historical data, VRIFY aims to facilitate better stakeholder engagement throughout the mine’s lifecycle.
The Fenix Gold Project represents a significant investment of approximately $235 million by Rio2 Limited. It boasts a Measured and Indicated mineral resource of 4.8 million ounces of gold. The project is designed with modern mining practices that prioritize environmental sustainability and social responsibility. Notably, it will operate as a run-of-mine heap leach facility without requiring tailings storage facilities, thereby minimizing its ecological footprint.
Rio2 Limited has committed to maintaining high environmental standards that exceed regulatory requirements while fostering economic growth in the Atacama Region with the vison of making a significant impact on both local employment and gold production in Chile through its Fenix Gold Mine project.
