The environmental impact assessment (EIA) for the Fenix gold project, in Chile, has failed to win the support of a regional evaluation commission, which includes 12 governmental institutions, TSX-V-listed Rio2 reported on Tuesday.
The company, which believes its project fulfills the applicable regulations, said it would evaluate its options and decide on an action plan.
“The Fenix gold project is an example of modern gold mining where a full complement of technical, environmental and social considerations have been consulted on and designed in from the outset,” Rio2 said.
The project represents a significant investment in the gold mining business in Chile by a junior mining company and will generate employment for about 1 200 people during the construction phase and 550 people during the 17-year operations phase.
The mine being contemplated at the project will be a run-of-mine heap leach operation and no crushing or tailings storage facilities are required thereby minimising the overall impact and footprint of the project.