Rio2 Limited (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) has revealed an update of its activities following the the Atacama Regional Evaluation Commission’s decision to not approve the Environmental Impact Assessment (EIA) for its Fenix Gold Project in Chile.
The company, along with its Chilean environmental and legal advisors, are currently evaluating options to continue to advance the Project. A key document the company is waiting for is the Environmental Qualification Resolution (RCA) which is the administrative document with which the Environmental Assessment Service (SEA), outlines the rationale for their decision. The RCA is expected within the next three weeks and the company is finalising its action plan thereafter.
Once the EIA action plan is completed, the company anticipates announcing a revised timeline of its proposed activities and how it intends to execute and finance the plan forward.
Key considerations for developing a plan forward is to use all the well-established options within the permitting process and working with all relevant government authorities to ensure we secure a successful path forward for the development of the Fenix Gold project.
The company said it is thankful for the support it has received following the EIA decision from various government authorities and community organisations that participated in the Participación Ciudadana (Citizen Participation) and Consulta Indígena (Indigenous Consultation) as part of the EIA process.
The company is also encouraged that the SEA decision states that the EIA fulfills all the applicable regulations and meets the environmental requirements for the granting of applicable sectorial permits.
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 five 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 have been consulted on and designed in from the outset. The Project represents a significant investment in the gold mining business in Chile by a junior mining company of approximately US$210M of initial and sustaining capital and will generate employment for at least 1,200 people during the construction phase and 550 people during the 17 years operations phase. The mine being contemplated at the Project 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.
As at March 31, 2022, the company had cash of approximately US$33M and working capital of approximately US$25M which had been allocated to pre-development activities for the Project. A significant amount of money has been invested so far in the pre-development of the Project including the construction of the camp facilities at its infrastructure subsidiary, Lince S.A., pre-fabrication of elements of the processing plant and water loading facilities in Copiapo.
For further information please visit: https://www.rio2.com/
