Fenix Gold

Project Overview

The Fenix Gold project is located in Atacama Region of Chile's Copiapó Province, specifically in the Maricunga Mineral Belt, approximately 160-kilometres northeast of Copiapó.

Fenix is classified as low-sulphidation epithermal deposit hosting sub-vertical, oxide-gold mineralization. Mineralization is controlled by NW-SE faulting, with the gold hosted in black, banded quartz veins and complex, fault-bounded breccias. Gold is usually fine grained and occurs in both native form and as submicroscopic gold in iron oxides.

High-grade ROM ore will be mined and transported directly to the heap leach facility (HLF) by trucks. Lime will be added to the mine trucks in transit to the leach pad, where the ore will be stacked and treated at a rate of 20,000 tpd by applying solution. The collected pregnant leached solution (PLS) will be further processed in an adsorption/desorption recovery (ADR) plant to produce gold doré bars. The HLF operation is designed to be upgradeable up to 80,000 tpd. Lower-grade material will be stockpiled for processing at the end of the Project’s life.

Fenix will have access to water via a contract signed with Nueva Atacama, the major water supplier in Copiapó. The contract will supply up to 20 l/s of treated wastewater from its Piedra Colgada treatment facility located to the north of Copiapó. Water will be transported by 30 m3 water tankers to the project site. Sectorial permit applications are currently in process at the Fenix Gold project.

Construction of the Fenix Gold project commenced in October 2024, with anticipated completion in November 2025.

Stream Details

Date of Contract	15-Nov-21
Term	Life of Mine
Stream	22% of gold until 185 koz, 4% of gold until 325 koz, 3.5% thereafter*
Upfront Consideration	$150M
Delivery Payment Per Ounce	18% of spot
Cost Quartile	Fourth

*On October 21, 2024, the Company amended the Fenix PMPA. Under the original agreement, the Company was to acquire an amount of gold equal to 6% of the gold production until 90,000 ounces have been delivered, 4% of the gold production until the delivery of a further 140,000 ounces and 3.5% gold production thereafter for the life of mine. Under the revised agreement, the Company is entitled to purchase an additional 16% of payable gold production (22% in total) (subject to adjustment if there are delays in deliveries relative to an agreed schedule). Once Rio2 delivers the incremental 95,000 ounces (as adjusted), the stream reverts to the percentages and thresholds under the original Fenix PMPA (as described). Rio2 has a one-time option to terminate the requirement to deliver the incremental gold production from the end of 2027 until the end of 2029 by delivering 95,000 ounces (as adjusted) less previously delivered gold ounces, excluding those gold ounces which would have been delivered under the original Fenix PMPA.

For more information on the Fenix Gold Project, please visit: www.rio2.com (opens in new tab)