Preparing To Order Long Lead Items For Chile Gold Mine
Rio2 Limited (TSXV: RIO) is making good progress with development plans for its Fenix Gold Project in Chile.
The company revealed that preparations are underway for the purchase of lead order items and equipment for the fabrication of the 20,000 tonnes per day Adsorption/Desorption processing plant which will be fabricated off-site and ultimately transported to the Fenix Gold Mine site for assembly once the project’s construction permit is issued, currently guided for Q3 2022.
The Fenix Gold Project’s civil and mining services contractor, STRACON, is currently establishing a base for its business in Copiapo and is preparing to purchase equipment for construction and logistical activities.
A joint plan is also in the process of being prepared to establish the guidelines to be considered for the recruiting process of local labor and the engagement of local service providers.
Permitting of various components of the Fenix Gold Project has been in progress since the Environmental Impact Assessment (EIA) was submitted to the Chilean authorities in April 2020. Since then, the company has managed to successfully overcome an administrative delay in the review process due to the impact of Covid-19 of approximately six months during 2020.
Rio2’s 100% owned Chilean subsidiary, Fenix Gold Limitada, is working closely with the Chilean Environmental Assessment Service (SEA” in advancing in parallel the indigenous consultation process and attending to technical observations related to the review of the EIA. The review process is progressing as expected and current expectations are for EIA approval to be obtained in late Q1 / early Q2, 2022.
Metallurgical test-work related to the Run of Mine (ROM) trial heap has been completed and final analysis of residual leached material is underway.
The company said that should recoveries from ROM leaching be demonstrated to be in the range of 70% to 75% then a decision will be made as to whether to exclude a primary crusher in the initial project configuration which would result in capex savings of up to US$20 million. Gold recovery results obtained to date have been very encouraging and final results will be announced shortly.
Rio2 said it is well advanced in the evaluation of financing options to fund the development of the Fenix Gold Project and the company remains on track for first gold production in late 2022.