Brought to you by BULLS N’ BEARS
Rowena Duckworth
After nearly a decade of persistence, planning and patience, Canadian listed Rio2 Ltd has finally flicked the switch from developer to producer, pouring first commercial gold at its 100 per cent-owned Fenix gold mine in Chile.
The milestone pour took place last Friday- January 23, 2026- delivering approximately 897 ounces of freshly smelted gold and officially ushering Rio2 into the ranks of operating gold miners. The pour followed an earlier commissioning run in December that produced about 358 ounces, lifting total early production to more than 1,250 ounces of gold and around 131 ounces of silver.
For Vancouver and Toronto-listed Rio2, the moment marks far more than just the first bar of bullion. It represents the end of construction risk, the start of cash flows and the culmination of a long and often testing journey that began with the company’s merger with Atacama Pacific Gold Corporation in 2018.
With first gold now in the bag, Fenix has become Chile’s newest operating gold mine. Importantly, all critical path construction activities were completed on time and on budget, a notable achievement in an environment where cost blowouts and delays have become the norm across the global mining sector.
The focus now shifts to ramp-up. Ore placement rates are being progressively lifted, with management targeting steady-state operations of 20,000 tonnes per day as the year unfolds. On current schedules, the company is guiding toward gold production of between 60,000 and 70,000 ounces in 2026, setting the stage for Fenix to quickly establish itself as a meaningful contributor to Chile’s gold output.
Executive chairman and former WA resident Alex Black said: “This milestone moment is the culmination of a long and somewhat challenging eight-year journey since our 2018 merger with Atacama Pacific Gold Corporation. It speaks to the discipline, execution capability and determination of our team. On behalf of the board of directors of Rio2, I want to congratulate Andrew Cox and the combined Rio2 and Fenix Gold team for delivering the Fenix Gold Mine on budget, in record time.”
Perched high in Chile’s legendary Maricunga gold belt at a lofty 4500 metres, the low-sulphidation epithermal Fenix gold project is already a monster in the making.
The deposit spans 2000 hectares and hosts a staggering 389 million tonnes of ore grading 0.38 grams per tonne (g/t) gold, for a total of 4.8 million measured and indicated ounces. The well-to-do neighbourhood is also home to Kinross Gold’s La Coipa Au-Ag mine, Hochschild’s Volcan gold project, and Kinross’ Maricunga gold mine.
The Fenix project is designed as a run-of-mine heap leach operation, which nicely minimises its environmental impact by eliminating crushing or tailings facilities. Heap leaching is a system of piling ore on a thick polyethylene pad and spraying it with a targeted chemical solution to dissolve and extract the gold.
Looking ahead, in the first 12 years, Fenix is tipped to produce about 91,000 ounces of gold a year on average at 0.54g/t gold, before averaging 82,000 ounces annually at 0.48g/t across its full 17-year life.
A 2023 feasibility study valued the project at US$210 million (A$304 million) after tax, based on a conservative US$1750 (A$2531) per ounce gold price and a tidy 3.5-year payback. Given the soaring gold price is now way above the feasibility assumptions, the company stands to generate materially stronger cash flows, faster payback and improved project economics as Fenix moves through ramp-up and into steady-state production.
The project will employ 1200 local people during construction and 800 during its anticipated 17-year mine-life, a move that will significantly benefit the Atacama region where the sparse population is heavily mining-dependent for steady incomes.
Management says the mine will form Rio2’s cornerstone asset, funding the company’s push to grow its Latin American footprint and bed down the newly acquired Condestable copper mine in Peru as it builds a diversified, multi-commodity production platform.
Now that first gold has been poured, construction risk removed and a clear production ramp-up plan is in motion, Rio2 enters 2026 with momentum firmly on its side. As the tonnes stack on the heap leach pad and gold continues to flow, the company’s long-awaited transition to producer status is finally complete — and the next chapter is just getting underway as the gold price soars.
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