Rio2 Limited - Fenix Gold Project Update
04 Mai 2021 - 2:00PM
Rio2 Limited (“Rio2” or “the Company”) (TSXV: RIO; OTCQX: RIOFF;
BVL: RIO) today provides an update regarding its progress related
to its Fenix Gold Project in Chile.
Preparations are underway for the purchase of
lead order items and equipment for the fabrication of the 20,000
tonnes per day Adsorption/Desorption processing plant which will be
fabricated off-site and ultimately transported to the Fenix Gold
Mine site for assembly once the project’s construction permit is
issued, currently guided for Q3 2022.
The Fenix Gold Project’s civil and mining
services contractor, STRACON, is currently establishing a base for
its business in Copiapo and is preparing to purchase equipment for
construction and logistical activities. A joint plan is also in the
process of being prepared to establish the guidelines to be
considered for the recruiting process of local labor and the
engagement of local service providers.
Permitting of various components of the Fenix
Gold Project has been in progress since the Environmental Impact
Assessment (“EIA”) was submitted to the Chilean authorities in
April 2020. Since then, we have managed to successfully overcome an
administrative delay in the review process due to the impact of
Covid-19 of approximately 6 months during 2020. Rio2’s 100% owned
Chilean subsidiary, Fenix Gold Limitada, is working closely with
the Chilean Environmental Assessment Service (“SEA”) in advancing
in parallel the indigenous consultation process and attending to
technical observations related to the review of the EIA. The review
process is progressing as expected and current expectations are for
EIA approval to be obtained in late Q1 / early Q2, 2022.
Metallurgical test-work related to the Run of
Mine (“ROM”) trial heap has been completed and final analysis of
residual leached material is underway. Should recoveries from ROM
leaching be demonstrated to be in the range of 70% to 75% then a
decision will be made as to whether to exclude a primary crusher in
the initial project configuration which would result in capex
savings of up to $20 million USD. Gold recovery results obtained to
date have been very encouraging and final results will be announced
shortly.
Rio2 is well advanced in the evaluation of
financing options to fund the development of the Fenix Gold Project
and the Company remains on track for first gold production in late
2022.
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. In addition to the Fenix Gold Project in
development in Chile, Rio2 Limited continues to pursue additional
strategic acquisitions where it can deploy its operational
excellence and responsible mining practices to build a multi-asset,
multi-jurisdiction, precious metals company.
Forward-Looking Statements
This news release contains forward-looking
statements and forward-looking information (collectively
“forward-looking information”) within the meaning of applicable
securities laws relating to Rio2’s planned development of its Fenix
Gold Project and other aspects of Rio2’s anticipated future
operations and plans. In addition, without limiting the generality
of the foregoing, this news release contains forward-looking
information pertaining to the following: the potential development
of a mine at the Fenix Gold Project, the expected timeline for Rio2
to obtain a construction permit for the Fenix Gold Project, the
expected timeline for the completion of the EIA process and
expectations for the timing for the approval of the EIA, the
expected timeline for the selection of a financing solution for the
construction of a mine at the Fenix Gold Project, the expected
timeline for the commencement of gold production from the Fenix
Gold Project, the potential for capex savings due to an alternative
processing configuration under review by Rio2 and other matters
ancillary or incidental to the foregoing.
All statements included herein, other than
statements of historical fact, may be forward-looking information
and such information involves various risks and uncertainties.
Forward-looking information is often, but not always, identified by
the use of words such as “seek”, “anticipate”, “plan”, “continue”,
“estimate”, “expect”, “may”, “will”, “project”, “predict”,
“potential”, “targeting”, “intend”, “could”, “might”, “should”,
“believe”, and similar expressions. The forward-looking information
is based on certain key expectations and assumptions made by Rio2’s
management, including but not limited to: expectations concerning
prevailing commodity prices, exchange rates, interest rates,
applicable royalty rates and tax laws; capital efficiencies;
legislative and regulatory environment of Chile; future production
rates and estimates of capital and operating costs; estimates of
reserves and resources; anticipated timing and results of capital
expenditures; the sufficiency of capital expenditures in carrying
out planned activities; performance; the availability and cost of
financing, labor and services; and Rio2’s ability to access capital
on satisfactory terms.
Rio2 believes the expectations reflected in
these forward-looking statements are reasonable, but no assurance
can be given that these expectations will prove to be correct and
such forward-looking statements in this news release should not be
unduly relied upon. A description of assumptions used to develop
such forward-looking information and a description of risk factors
that may cause actual results to differ materially from
forward-looking information can be found in Rio2's disclosure
documents on the SEDAR website at www.sedar.com. Forward-looking
statements included in this news release are made as of the date of
this news release and such information should not be relied upon as
representing its views as of any date subsequent to the date of
this news release. Rio2 has attempted to identify important factors
that could cause actual results, performance or achievements to
vary from those current expectations or estimates expressed or
implied by the forward-looking information. However, there may be
other factors that cause results, performance or achievements not
to be as expected or estimated and that could cause actual results,
performance or achievements to differ materially from current
expectations. Rio2 disclaims any intention or obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as expressly
required by applicable securities legislation.
To learn more about Rio2 Limited, please
visit: www.rio2.com or Rio2's SEDAR profile at
www.sedar.com.
ON BEHALF OF THE BOARD OF RIO2 LIMITED
Alex BlackPresident, CEO & DirectorEmail:
info@rio2.comTel: 1 (604) 260-2696
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.
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