Name of the Project
Fenix gold project.

Location
The project is located in the Maricunga mineral belt of the Atacama region, in Chile.

Project Owner/s
Rio2.

Project Description
Rio2 has completed an updated prefeasibility study (PFS) on the Fenix project. This PFS is strategically focused on an optimally configured mine plan, which will facilitate the shortest possible timeline to construction and production, a lower initial capital expenditure, higher grades initially being mined and a lower initial strip ratio, compared with the 2014 PFS.

The PFS focuses on a low-cost heap-leach gold mine with 1.83-million ounces of gold reserves grading 0.49 g/t, which will produce 1.37-million ounces of gold.

The PFS contemplates mining ore at 20 000 t/d, with water for the project being trucked from Copiapo. This compares with the ore mining rate of the 2014 PFS, which was a constant 80 000 t/d with water for the project being piped from Copiapo. To maximise cash flow, high-grade ore will be placed on the leach pad during the initial 13 years of production. Low-grade ore will be stockpiled for leaching in the subsequent three years of pro-duction, providing a total mine life of 16 years.

Average gold production during the first 13 years will be 93 000 oz/y and 50 000 oz/y during the final three years of production as stockpiled ore is being crushed and leached.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $168-million and an internal rate of return of 27.4%

Capital Expenditure
Initial capital expenditure is estimated at $111-million.

Planned Start/End Date
Construction is currently targeted for the fourth quarter of 2021 and first gold production for the fourth quarter of 2022.

Latest Developments
The principal focus for management during the two-year lead up to construction will be to optimise the estimated capital expenditure for the construction of the project and refine and reduce the current operating cost estimate where practicable.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Rio2, tel +1604260 2696 or email info@rio2.com.