Rio2 signs MOUs on desalinated water for Fenix Gold

Executive Summary

• Rio2’s Chilean subsidiary, Fenix Gold Ltd., signed two MOUs with desalinated‑water providers to study supplying seawater to the Fenix gold mine.
• The studies initiate a four‑month conceptual phase, followed by feasibility work and exclusive negotiations for a joint development agreement, targeting water delivery infrastructure by H2 2030.
• Expansion plans aim for 80,000 t/day ore throughput and ≥300,000 oz of gold per year for roughly ten years, with key project milestones outlined through 2030.

Key Details

• MOUs Executed: Two separate memoranda of understanding with desalination companies operating in Copiapó, Chile.
• Study Timeline:
• Four‑month conceptual study to evaluate water supply options (started immediately).
• Post‑study selection of preferred provider for a detailed feasibility study.
• Future Agreements: Upon successful feasibility and internal approvals, Rio2 will enter exclusive negotiations for a joint development agreement; the company retains the right to involve other miners in the partnership.
• Projected Milestones:
• Prefeasibility study completion – Q1 2026
• Mineral reserve & resource update – Q4 2026
• Feasibility study completion – H2 2027
• Capital‑expenditure approvals for expansion – Q1 2029
• Completion of desalinated water supply and related capital works – H2 2030
• Ramp‑up to higher production rate – H2 2030 (indicative)
• Target Production: 80,000 t/day ore processing → ≥300,000 oz gold annually for ~10 years.
• Project Scale: Measured & indicated resource of 4.8 M oz Au; total initial and sustaining capital estimated at US$235 million; construction employment ≈1,200, operations employment ≈800 over a 17‑year life.
• Technical Validation: Content reviewed and verified by Enrique Garay, MSc, PGeo/FAIG (qualified person under NI 43‑101). Reference technical report dated Oct 16 2023 available on SEDAR+.

Notable Quotes

“This is a significant milestone for the planned future expansion of the Fenix gold mine… could be the first time desalinated water is transported from the coast to a high‑altitude mine in the Atacama region of Chile.” – Andrew Cox, President & CEO, Rio2

“With first gold production guided for January 2026, the next five years of our activities at Fenix Gold will be both exciting and transformational for the company.” – Alex Black, Executive Chairman, Rio2