Mine developer and operator Rio2 reports it has submitted its environmental impact assessment (EIA) for the construction and operation of its Fenix gold project to Chilean authorities.

Work on the EIA started in November 2018 with the preparation of an environmental baseline study, which included the documentation of flora, fauna, climate, air quality, archeological sites, hydrogeology, soil usage, geology, geomorphology, hydrogeology, geochemistry, water quality, paleontology, landscape, noise and vibrations along with a socio-demographic survey and ecosystem characterisation during the various seasons of the year. The environmental baseline study was completed in January 2020.

The EIA has been prepared to support the project outline of the Fenix gold project as defined in the August 2019 prefeasibility study (PFS).

Approval of the EIA is anticipated for the second quarter of 2021.

The objectives of the EIA are to identify, prevent, reduce, correct and mitigate any potential impacts to the environment or the social framework of the Fenix gold project, situated in the Atacama region of Chile.

Rio2 president and CEO Alex Black says the submission of the EIA comes 20 months after acquiring the project and four months after completing an environmental baseline study on the project. “The potential mine would present a boost for the regional economy with respect to job creation, procurement of goods and services as well as payments of taxes and royalties.”

He adds that more than 1 000 jobs will be created during construction of the mine and more than 500 when the mine enters production. “We expect the Fenix gold mine to make a positive and lasting contribution to the employment and economy of the region for many years.”

The company in August published an updated PFS for the project, outlining a shorter timeline to construction, a more simplified approval process and lower initial capital costs than a 2014 study. The PFS focuses on a low-cost heap leach gold mine with 1.83-million ounces of gold reserves that will produce 1.37-million ounces of gold.

The PFS contemplates mining ore at a rate of 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 would be placed on the leach pad during the initial 13 years of production and low-grade ore would be stockpiled for leaching in the subsequent three years of production giving a total mine life of 16 years.

The mine will produce an average of 93 000 oz/y in the first 13 years, followed by 50 000 oz/y during the final years of production.