Names Lead Contractors For Key Chilean Project
Rio2 Limited (TSXV: RIO) has taken another key step towards the development of its Fenix Gold Project located in Chile with the selection of key lead contractors.
The company has named HLC Ingeniería y Construcción (HLC) as the process plant / site infrastructure construction contractor.
It has also revealed that it has awarded contracts to Anddes Asociados S.A.C. – leach pad and civil design, and STRACON S.A. – civil earthmoving and construction contractor.
Together with Rio2, the companies have executed an early contractor involvement agreement (ECI Agreement) for early works associated with the process plant / site infrastructure, leach pad and project civil design and construction.
Prior to the signing of this ECI Agreement, the parties have been working exclusively over the past few months in close cooperation with Rio2 management to detail all project engineering items related to the construction of the Fenix Gold Mine.
Detailed engineering activities for the construction of the Fenix Gold Mine are scheduled to be completed in early November in preparation for project financing.
The scope of works for each contractor includes the following:
HLC – design and construction of the primary crushing and stockpile circuit, ADR plant and water facilities, lime dosing and leach pad pumping circuit, workshop, warehousing, onsite offices and dining facilities, onsite power generation and distribution.
ANDDES – engineering design for all civil earthworks, including access roads, water controls, infrastructure platforms, leach pad and ponds, waste dump and stockpiles. ANDDES will also provide site-based supervision of all civil works including quality control and assurance.
STRACON – responsible for all earthmoving and associated activities, all road maintenance and construction, building and infrastructure platforms, pad and pond construction, waste dump and stockpile preparation, water controls, water transport for construction purposes and various support services to HLC and ANDDES as required. These services will be in addition to their role as lead mining contractor as announced and outlined in a previous press release dated July 7, 2020.
The commercial terms of the contract services will utilise an alliancing-style commercial framework based on the project configuration, mine plan, methodologies and productivity estimate assumptions contained in the Fenix Gold Project Pre-Feasibility Study with an effective date of August 15, 2019.
The Fenix Gold Project continues to advance as scheduled and first gold production is estimated for late H2, 2022.
Rio2 has also reported that the Fenix Gold Project has been recently included in a selected list of 220 multi-sector projects to be prioritized by the Office of Sustainable Project Management (GPS) – part of the Chilean Ministry of Economy.
This governmental office helps prioritise development projects that are perceived as environmentally responsible and sustainable and also respectful of their surrounding communities.
