There’s a big shift in play for Rio2 Limited (TSX: RIO, OTCQX: RIOFF, FRA: 1SB), one that goes far beyond unlocking new mineral reserves at their flagship Fenix Gold Project in Chile. Early this morning, Rio2 announced that its Chilean subsidiary, Fenix Gold Limitada, has signed two separate Memorandum of Understandings with different desalinated water distribution companies operating in the Copiapo area. These agreements put the company on the path to evaluate bringing coastal water up from Copiapo to the mine site, potentially the first time desalinated water will be moved from the Chilean coastline all the way to a high-altitude mining operation in the Atacama Region.
Executives at Rio2 are calling the agreements a milestone for Fenix Gold, and it’s hard to overstate why this is timely. Water supplies in northern Chile have been under pressure for years, with major mining players vying for available freshwater while grappling with environmental and community expectations. For Rio2, securing a path to bring in desalinated water isn’t just about regulatory compliance; it adds certainty to the ambitious expansion plans, the mine could eventually process 80,000 tonnes of ore per day and produce at least 300,000 ounces of gold annually over a decade.
Andrew Cox, Rio2’s President and CEO, is optimistic about the progress and the pioneering aspect of the water delivery plan. The company expects first gold production from Fenix Gold in January 2026, and the new agreements set the stage for a multi-year expansion cycle. Over the next four months, both water suppliers will conduct conceptual studies to outline how they can provide a reliable water supply. Fenix Gold will then select one company to prepare the full feasibility study, an essential step before any construction or project capital is committed.
The tentative schedule is aggressive and could see the pre-feasibility study wrapped up by the first quarter of 2026, with mineral resource updates following in the year’s final quarter. The goal is to have a finalized feasibility study in the second half of 2027, capital commitments by early 2029, and major water infrastructure and mining works completed by late 2030. If all lines up, production could ramp up at the tail end of the decade, with the capacity to deliver substantial gold output, backed by modern mining and environmental standards.
Rio2 is leaning heavily on transparency and regular updates. The company has set its own future reporting cadence to ensure stakeholders aren’t left in the dark if regulatory issues, infrastructure delays, or water supply questions require timeline revisions. Having clear benchmarks for each phase makes it easier to track progress and spot bottlenecks early.
What stands out is not just the scale of the Fenix Gold Project but the approach, Rio2’s plan is to use a run-of-mine heap leach processing methodology. This means there’s no need for extensive crushing circuits or large tailings facilities, minimizing the plant’s physical footprint, a decision likely welcome by both regulators and nearby communities. The mine is set to employ around 1,200 workers during its build-out and 800 during its projected 17 years of operations. Initial and sustaining capital for the mine totals about US$235M, all in, making it a standout investment for a junior mining company in Chile.
Rio2’s team isn’t just focused on technical execution. The company is prioritizing environmental responsibility, aiming to go beyond regulatory mandates and weave social, environmental, and economic priorities into every phase of project development. This philosophy is increasingly essential as mining firms across Latin America face intense scrutiny about water use, community impact, and climate risk disclosure.
The technical content underpinning Fenix Gold’s expansion, including mineral resource calculations, engineering benchmarks, and environmental plans, has been reviewed and verified under Canada’s NI 43-101 standards by qualified professionals. Those details are publicly documented in the independent feasibility study and available to anyone seeking a deeper technical breakdown.
Rio2 has set a clear path forward, blending ambitious targets with careful engineering and community involvement. The Fenix Gold Project may well transform from a promising asset in the Atacama to a leading example of how mining operations can evolve alongside new environmental and social realities.
