Rio2 prepares to start construction at Fenix Gold project in Chile

Canadian mining company Rio2 is preparing construction start of the Fenix Gold (formerly Cerro Maricunga) project in Chile in November, after local subsidiary Fenix Gold received permits related to the operation, processing plant, waste management and closure plan.

Rio2 CEO Andrew Cox said in a statement that having these permits will allow the firm to complete the search for financing with corporate debt and start the construction phase of the mine in Atacama region.

Fenix involves an initial investment of US$116 million and a total of US$235mn over a 17-year mine life. A throughput rate of 20,000t/d is estimated and average annual production of 91,000oz of gold in the first 12 and 54,000oz in the last five years, according to the feasibility study.

See the study in the Documents box in the top-right corner.

Rio2 said several parties are interested in financing what it considers one of the largest gold oxide heap leach projects in the Americas.

The Fenix mine will be an open pit, which contains measured and indicated resources of 4.8Moz gold. The operation does not require crushing facilities or tailings dams, minimizing the impact and carbon footprint, Rio2 said in a statement.

In 2022, its environmental impact study was rejected by an Atacama region evaluation committee due to possible damage to flora and fauna in the area of influence.

However, after presenting background information, updating technical reports and obtaining agreements with indigenous communities surrounding the project, Fenix Gold received the environmental qualification resolution this year.

Since 2020, Rio2 has retained three main contractors to participate in the development.

It has an alliance with the local unit of Stracon, which will be responsible for civil construction, installation of platforms, storage of sterile material, drilling, blasting, transportation, road maintenance and water transport from Copiapó city, among others.

Another agreement is with HLC Ingeniería y Construcción for the design and installation of the primary crushing circuit, stockpile, lime supply management, generation and distribution of electric power, among others.

And an agreement with Anddes covers, among other things, the engineering design for civil works and earthworks, including access roads, leaching pads and quality control.

The capex estimate considered a 14-month construction period and the start of pre-production in the 13th month. If deadlines are met, Fenix Gold could be operational in 2026.