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  • Pages
  • Editions
01 Cover
02 Welcome Letter / Sections
03 Article & Interview Directory
04 Section 1: Introduction
05 An Evolving Constitutional Landscape
06 Chile Ministry of Mining Interview
07 Consejo Minero Interview
08 APRIMIN Interview
09 Expert Opinion Article: Francisco Acuña, CRU
10 Expert Insights: Chile’s Evolving Sociopolitical Landscape
11 ESG & Renewable Energy
12 ICMM Interview
13 Aggreko Interview
14 Mining Investment Climate
15 Appian Capital Advisory Interview
16 Expert Insights: Attracting Sustainable Investment
17 Section 2: Production & Development
18 Copper Production & Development
19 BHP Interview
20 Antofagasta PLC Interview
21 Freeport McMoRan Interview
22 Teck Resources Limited Interview
23 Amerigo Resources Interview
24 Precious Metals
25 Kinross Interview
26 Rio2 Limited Interview
27 Lithium
28 SQM Interview
29 Albemarle Interview
30 Section 3: Junior Exploration
31 Study-stage Copper Projects
32 Expert Insights: Chile's Junior Exploration Community
33 World Copper Limited Interview
34 Early-stage Opportunities
35 ATEX Resources Interview
36 Torq Resources Interview
37 Pampa Metals Interview
38 VerAI Discoveries Interview
39 Lithium Exploration and Development
40 Lithium Chile Interview
41 Wealth Minerals Interview
42 Monumental Minerals Interview
43 Section 4: Engineering, Construction & Consultancies
44 Engineering & Consultancies
45 Water and the Environment
46 JRI Interview
47 Wood Interview
48 SRK Consulting Interview
49 Construction & Contractors
50 Sigdo Koppers Interview
51 Züblin Strabag Interview
52 Echeverría Izquierdo Interview
53 Thiess Interview
54 Going Underground
55 Master Drilling Interview
56 Robbins Interview
57 INCIMMET Interview
58 Section 5: Equipment & Technology
59 The Evolution of Mining Equipment
60 Scania Interview
61 Expert Insights: OEMs on Sustainability and Innovation
62 Comminution & Material Handling
63 Metso Outotec Interview
64 ME Elecmetal Interview
65 TAKRAF Interview
66 Haver & Boecker Interview
67 Innovation & Technology
68 Hexagon Interview
69 DSI Underground Interview
70 Dingo Interview
71 Pipes, Valves, Components & Wear Protection
72 Hofmann Engineering Interview
73 Expert Insights: The Benefits of AI and Automation
74 Section 6: Services
75 Drilling & Blasting
76 Geotec Boyles Bros Interview
77 Enaex Interview
78 Services
79 SGS Interview
80 Section 7: Sponsored Company Profiles
81 FreePort-McMoRan Profile
82 Rio2 Company Profile
83 Lithium Chile Profile
84 Metso Outotec Company Profile
85 SGS Company Profile
86 Credits

Alex Black, President & CEO,

RIO2 LIMITED

"The technical characteristics of Fenix Gold are very similar to the two mines which the Rio2 management team built in Peru – La Arena and Shahuindo – under our previous company, Rio Alto Mining, which was acquired by Tahoe Resources for C$1.2 billion in 2015."

Can you briefly introduce Rio2 and the company’s Fenix Gold project?

Rio2 was established as a private company in 2016, before listing in 2017. In 2017, we came across a company named Atacama Pacific, and completed a merger with them in mid 2018 which gave us ownersip of the Cerro Maricunga project, which we renamed Fenix Gold. Fenix Gold is the largest undeveloped gold heap leach project in the Americas, and is now fully financed to production. The technical characteristics of Fenix Gold are very similar to the two mines which the Rio2 management team built in Peru – La Arena and Shahuindo – under our previous company, Rio Alto Mining, which was acquired by Tahoe Resources for C$1.2 billion in 2015.

How is the project financing for Fenix Gold structured?

We raised C$35 million in equity in August 2021, and also agreed to a US$50 million stream with Wheaton Precious Metals. Half of the stream will be drawn down in Q1 2022, with the second tranche being drawn upon EIA approval. We already have permits and easements in place to access the land where we will be mining, which has allowed us to start pre-construction activities. Once we have a construction permit, we plan on securing senior secured debt in the order of US$50 million to US$60 million, for which BNP Paribas have agreed to be the lead arranger.

What is the development timeline to move the project into production?

It takes a few months between getting the EIA and the construction permit. In the meantime, we bought an infrastructure site about 20 km from the Fenix Gold mine site. It is 3,200 m above sea level, with Fenix Gold up the hill at 4,900 m altitude. This infrastructure site allows us do a lot of fabrication of plant components at the site, so when we receive the construction permit it becomes an assembly project at the mine site. We want to move quickly and expect to achieve the first gold pour at Fenix Gold early in the new year of 2023.

How are you managing to keep the construction of Fenix within budget?

Fenix is a low capex build because it’s a gold oxide heap leach project which requires a simple ADR plant. When you talk about inflation, a 10% increase on a US$120 million build is a lot more manageable than on a US$1 billion build.

In January 2022, the second phase test work of Sixth Wave Innovations Inc.’s IXOS purification polymer began at Fenix. What does this technology aim to achieve?

We are going to be building the first part of our plant with carbon absorption, but if the tests with Sixth Wave are successful, we would consider replacing carbon with the polymers for the expansion of the project. In an ADR plant, carbon absorbs the gold in tanks and the gold is then extracted, but you have to regenerate carbon which uses energy. The polymer process replaces the use of carbon and doesn’t require regeneration. We are testing whether the gold recovery process will be as efficient as using carbon, and how much it will cost. If the efficiency and economics work out, this could improve the project from a cost and ESG perspective.

Can you tell us about Rio2’s industrial water supply agreement with Nueva Atacama, and how you intend to source water as the project grows?

We are starting the project at 20,000 t/d of ore to pad, which requires about 25 liters of water per second for the leach process. Water will be brought to the mine in tankers from Copiapó from retreated water supplied by Nueva Atacama.

Fenix Gold already contains 5 million oz distributed amongst 410 million t of ore, but we believe this could grow through exploration to closer to 10 million oz. There are a number of desalination projects, such as ENAPAC, which is building a plant in Copiapó and looking for clients, plus some sub-surface water options which we are investigating. In the not too distant future we hope to show where we are going with our longer term water strategy, but the priority now is to get the mine into production.

VIEW COMPANY PROFILE

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