Canada’s Rio2 (TSX-V: RIO) has achieved first gold production at its Fenix gold mine in Chile, marking the transition from construction to Chile’s newest gold mine.
The first official gold pour took place on Jan. 23 and produced about 897 oz., following an additional 358 oz. poured in December during plant commissioning, the company said Monday. The two pours also yielded about 131 oz. of silver, it said.
Construction of critical-path infrastructure for the $235-million project was completed on time and on budget, Rio2 said.
Shares in Rio2 fell 6¢ to $3.88 on Monday and were at $3.80 on Tuesday morning in Toronto, valuing the company at $1.69 billion (US$1.24 billion). The stock has gained 6.7% over the past five days.
Fenix is located in Chile’s Atacama region along the Maricunga gold belt and will operate as a run-of-mine heap leach facility, eliminating the need for crushing or tailings infrastructure to reduce environmental impact.
Regional growth
Rio2 is ramping up operations toward a throughput rate of 20,000 tonnes of ore per day to pad over the remainder of the year and is targeting gold production of 60,000 ounces to 70,000 oz. in 2026 based on its current plan.
Executive chair Alex Black said the first pour capped an extended development process following the company’s 2018 merger with Atacama Pacific Gold, crediting the team’s discipline and execution for delivering the mine on budget and on schedule.
Black added that Fenix will serve as Rio2’s cornerstone asset as the company advances growth in Latin America. This includes the integration of its recently announced Condestable copper mine acquisition in Peru, which expands the company’s metals exposure beyond gold.
Construction began about a year ago, generating roughly 1,200 jobs during the build stage and supporting about 550 permanent positions over the mine’s 17-year life.
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