Rio2 Desalinated Water Update for Expansion of the Fenix Gold Mine

Core Viewpoint - Rio2 Limited's Chilean subsidiary, Fenix Gold Limitada, has signed two MOUs with companies for the potential supply of desalinated water to the Fenix Gold Mine, marking a significant milestone for the mine's expansion [1][2]. Company Developments - The MOUs will lead to studies evaluating the expansion of desalination facilities and the construction of a pipeline to supply water to the mine [1][3]. - A 4-month conceptual study will be conducted by the water companies, after which Fenix Gold will select a preferred provider to develop a feasibility study [2][3]. - The Fenix Gold Mine aims for an expanded production rate of 80,000 tonnes of ore per day, targeting at least 300,000 ounces of gold annually for approximately 10 years [4]. Project Details - The Fenix Gold Project is one of the largest undeveloped gold oxide heap leach projects in the Americas, with a Measured and Indicated mineral resource of 4.8 million ounces of gold [5]. - The project represents a significant investment of approximately US$235 million, expected to create 1,200 jobs during construction and 800 jobs during the 17-year operational phase [5]. - The mine will utilize a run-of-mine heap leach operation, minimizing environmental impact by not requiring crushing or tailings storage facilities [5]. Timeline for Expansion - Key milestones include: - Completion of a pre-feasibility study by Q1 2026 - Mineral reserve and resource update by Q4 2026 - Completion of a feasibility study by H2 2027 - Capital expenditure approvals by Q1 2029 - Completion of desalinated water supply works by H2 2030 - Ramp-up to higher production rates by H2 2030 [6].