VANCOUVER, British Columbia, Jan. 13, 2025 (GLOBE NEWSWIRE) — Rio2 Limited (“Rio2” or the “Company”) (TSXV: RIO; OTCQX: RIOFF; BVL: RIO), is providing an update on construction activities at its Fenix Gold Mine located in the Maricunga Gold Belt of the Atacama Region, in Chile.

OVERVIEW

Pre-construction activities commenced at the Fenix Gold Mine in 2022 prior to the Environmental Impact Assessment (“EIA”) for the project being rejected by the Chilean environmental regulators. Those activities included:

• ordering and securing of long lead items for the construction of the adsorption, desorption, and gold recovery (“ADR”) plant and associated infrastructure
• fabrication of ADR plant components such as tanks and ADR plant foundation footings
• construction of a 565-person camp and associated mess and office facilities at the Lince infrastructure site, located 20km from the mine site
• water loading facilities at the Nueva Atacama water treatment facilities located in Copiapo

The project’s EIA was subsequently approved in December 2023 following a successful 18-month appeal process.

The Company recommenced construction activities at the Fenix Gold Mine in October 2024 after successfully completing a debt and equity financing for the construction of the mine announced on October 29, 2024.

The projected construction capex for 2025 is estimated to be USD 122 M (excluding Chilean VAT tax which is refundable) with construction expected to be completed in November 2025. First gold production is currently guided for January 2026.

PLANT SITE

Bulk earthworks at the plant site have been completed and concrete bases for the footings of the processing plant have been poured. The ADR plant will be housed within a steel framed building cladded with modular thermo-acoustic panels.

LEACH PAD

Earthworks have commenced on the leach pad stability platform, which forms the base of the Phase 1 leach pad. The leach pad has been designed to be built in four phases over the 17-year mine life of the 20,000 tonnes per day operations.

PREGNANT LEACH SOLUTION (“PLS”) POND

Excavation earthworks for the PLS pond have commenced adjacent to the ADR plant. The PLS pond will be lined with a double HDPE geomembrane liner system and have an installed capacity of 28,000 cubic metres. As determined by water balance modelling in the 2023 Fenix Gold feasibility study, a larger major events pond is currently planned to be built in year 6 of the mine operation.

PERSONNEL

The recruitment activities for the Fenix Gold Mine have focused on hiring key personnel for construction activities and future mine operation roles. Personnel numbers at the Fenix Gold Mine are increasing and, currently, over 531 staff and contractors work on-site. At the end of Q4 2024, approximately 50% of the workforce were from the Atacama region, and 16% of on-site personnel were women.

SAFETY

At the end of Q4 2024, the project achieved 161,917 person-hours worked with no lost time injuries reported.

GRADE CONTROL DRILLING AND GEOPHYSICAL SURVEY

In February, the Company will commence a 12,000m grade control drilling program focused on the first three years of production planned from the Fenix South and Fenix North pit areas. Fenix South will be the first area drilled during the months of February, March and April, and Fenix North will be drilled in October and November. The Fenix South pit will be the principal source of ore for the first year of mine production.

From February to March the Company will complete a survey of 25,000 meters of CSAMT electromagnetic lines. This survey will help the geological team identify silicified zones associated with black banded veins, which are the main gold host at the Fenix Gold deposit. The geophysical targets generated from this work will allow the Company to focus its future exploration drilling campaigns with the objective to grow the mineralized resource at Fenix Gold. Resource expansion drilling is currently planned to occur once gold production has commenced at the mine.

Rio2 is also pleased to announce that Enrique Garay has recently returned to the Company as Senior Vice President – Geology to lead and oversee the Fenix Gold geological team in preparation for mining toward the end of 2025 and future exploration.

MINE EXPANSION STUDY & ASSOCIATED EIA

A preliminary internal study completed by the Rio2 technical team has indicated that the Fenix Gold Mine has the potential to be expanded from its first phase 20,000 tonnes per day ore mining rate to around 80,000 tonnes per day. Increasing the ore mining rate to this level could see gold production rise from an initial rate of approximately 100,000 oz per annum to a target range of 250,000 – 300,000 oz per annum. To quantify and justify this potential expansion, the Company has initiated a mine expansion study with a target completion date by the end of 2025. Long-term water options will be assessed for the study and the most optimal water strategy will be selected and form a base case for project economics. To put this potential expansion case on a fast track to a construction decision, Rio2 has recently initiated baseline studies for an EIA study on the project, which is anticipated to be ready for review by the environmental regulators in the Atacama Region by Q4 2026. As most of the required infrastructure for the expanded project (apart from water which is expected to be provided by a third-party provider) is within the existing footprint of the currently approved EIA, the Company expects the EIA process to advance relatively smoothly. Updates will be provided as the expansion study and EIA progress.

Andrew Cox, President & CEO, commented, “Site activities at the Fenix Gold Mine continue advancing to plan. We are delighted with the team we are putting together and the milestones achieved so far. We look forward to continued success as we prepare the mine for first gold production in January 2026.”

Photos of the construction activities can be found at (https://www.rio2.com/media/photos).
To view a 3D VRIFY version of Rio2’s corporate presentation please click the following link: https://vrify.com/decks/17439 or visit the Company’s website at www.rio2.com

STOCK OPTION GRANT

The board of directors of the Company has approved the grant of an aggregate of 6,310,000 incentive stock options (the “Options”), pursuant to the Company’s Stock Option Plan, to a total of 72 directors, officers and employees of the Company, its Peruvian subsidiary, Rio2 S.A.C., and its Chilean subsidiaries, Fenix Gold Limitada and Lince S.A. The Options are exercisable at a price of $0.70 per share (based on a 10% premium over the closing price of C$0.63 on January 10, 2025) and will expire five years from the grant date. The Options represent the Company’s annual grant of long-term incentives consistent with the Company’s regular yearly compensation.

FENIX GOLD PROJECT

The Fenix Gold Project is one of the largest undeveloped gold oxide, heap leach projects in the Americas, hosting a Measured and Indicated mineral resource (as such term is defined in National Instrument 43-101 -Standards of Disclosure for Mineral Projects, “NI 43-101”) of 4.8 million ounces of gold which the Company believes will make a positive contribution to the Atacama Region and Chile. The Project is an example of modern gold mining where a full complement of technical, environmental, and social considerations has been consulted and designed from the outset. The Project represents a significant investment in the gold mining business in Chile by a junior mining company of approximately US$235M of initial and sustaining capital, generating employment for at least 1,200 people during the construction phase and 550 people during the 17-year operations phase. The mine being contemplated will be a run-of-mine heap leach operation; no crushing or tailings storage facilities are required, thereby minimizing the overall impact and footprint of the Project.

The scientific and technical content of this news release has been reviewed, approved and verified ‎by Enrique Garay, MSc P.Geo/FAIG who is a QP under NI 43-101. For additional information regarding the Project, including key parameters, assumptions ‎and risks associated with its development, see the independent technical report entitled ‎‎“NI 43-101 Technical Report on the Feasibility Study for the Fenix Gold Project” (the “Feasibility Study”) pursuant to National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). The Feasibility Study is dated October 16, 2023, with an effective date of October 16, 2023, a copy of which document is available under ‎Rio2’s SEDAR+ profile at ‎www.sedarplus.ca.

ABOUT RIO2 LIMITED

Rio2 is a mining company with a focus on development and mining operations with a team that ‎has proven technical skills as well as successful capital markets track record. Rio2 is focused on ‎taking its Fenix Gold Project in Chile to production in the shortest possible timeframe based on a ‎staged development strategy. Rio2 and its wholly owned subsidiary, Fenix Gold Limitada, are ‎companies with the highest environmental standards and responsibility with the firm conviction ‎that it is possible to develop mining projects that respect the three pillars (Social, Environment, ‎Economics) of responsible development. As related companies, we reaffirm our commitment to ‎apply environmental standards beyond those that are mandated by regulators, seeking to ‎protect and preserve the environment of the territories that we operate in.‎

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information (collectively ‎‎‎“forward-looking information”) within the meaning of applicable securities laws relating to Rio2’s ‎development of the Fenix Gold Project and other aspects of Rio2’s future ‎operations and plans. In addition, without limiting the generality of the foregoing, this news release ‎contains forward-‎looking information pertaining to the following: the development of a mine at the Project and related construction activities; the expected capital required for such mine; the expected timing of the first pour of gold; estimated indicated and measured gold resources; expected mine life; development and operating plans and expenditures; certain anticipated economic benefits of a mine at the Project to the local region; the potential to expand production from the first stage mining rate and associated gold production along with the timing for the completion of related studies and approvals; and other matters ancillary or incidental to the foregoing.

All statements included herein, other than statements of historical fact, may be forward-looking information and such information involves various risks and uncertainties. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. The forward-looking information is based on certain key expectations and assumptions made by Rio2’s management, including but not limited to: expectations concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; capital efficiencies; legislative and regulatory environment of Chile; future mining and production rates and estimates of capital and operating costs; expectations regarding the availability of debt financing; estimates of reserves and resources; anticipated timing and results of capital expenditures; the sufficiency of capital expenditures in carrying out planned activities; results of operations; performance; the anticipated timing and results of expansion studies and related approvals; the availability and cost of financing, labor and services; and Rio2’s ability to access capital on satisfactory terms.

Rio2 believes the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements in this news release should not be unduly relied upon. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Rio2’s disclosure documents on the SEDAR+ website at www.sedarplus.ca. These risks and uncertainties include, but are not limited to: risks and uncertainties relating to the completion of debt and equity financing for the construction phase of the mine, market conditions and management’s ability to anticipate and manage the factors and risks referred to herein.

Forward-looking statements included in this news release are made as of the date of this news release and such information should not be relied upon as representing its views as of any date subsequent to the date of this news release. Rio2 has attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. However, there may be other factors that cause results, performance or achievements not to be as expected or estimated and that could cause actual results, performance or achievements to differ materially from current expectations. Rio2 disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

To learn more about Rio2 Limited, please visit: www.rio2.com or Rio2’s SEDAR+ profile at www.sedarplus.ca.

ON BEHALF OF THE BOARD OF RIO2 LIMITED

Alex Black
Executive Chairman
Email: [email protected]
Tel: +51 99279 4655

Kathryn Johnson
Executive Vice President, CFO & Corporate Secretary
Email: [email protected]
Tel: +1 604 762 4720

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts the responsibility for the adequacy or accuracy of this release.

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