Resource Estimate Routine +

Rio2 Updates Condestable Mine Resources & Reserves

Rio2’s Condestable reserve update confirms a 14-year mine life and sub-$1.50 AISC, though tonnage drawdown limits expansion potential.

By The Northwire Desk — AI Analysis Jun 23, 2026 · 08:00 RIO · 2.63 Rio2 Limited

Executive Summary

Rio2 Limited released an updated NI 43-101 Technical Report for its Condestable copper mine in Peru, prepared by SLR Consulting.
The report confirms expanded Mineral Resources and Reserves, extending the mine life to 14 years through 2039.
Measured & Indicated Resources: 82.1 Mt at 0.69% Cu, 0.13 g/t Au, 4.12 g/t Ag. Inferred Resources: 22.2 Mt.
Proven & Probable Reserves: 36.5 Mt at 0.73% Cu, 0.15 g/t Au, 4.28 g/t Ag, containing 267,450 t Cu, 176,890 oz Au, and 5.02 Moz Ag.
Production profile forecasts ~18,000 tonnes of contained copper annually, plus 12,900 oz Au and 304,800 oz Ag at 8,400 tpd throughput.
LOM C1 cash costs are estimated at US$1.00/lb Cu, with LOM AISC at US$1.46/lb Cu.
Project economics show an after-tax NPV(8%) of US$710 million and undiscounted after-tax FCF of US$1,147 million.
Expansion plans include an EIA modification expected in Q3 2026 to increase throughput from 8,400 to 10,000 tpd.
A 46,480m near-mine drilling program is underway (37% complete), alongside studies for open-pit expansion.

Material Impact

The reserve update validates the Condestable acquisition thesis by confirming a 14-year mine life and highly competitive AISC of $1.46/lb Cu.
However, the Proven & Probable Reserves (36.5 Mt) represent a slight tonnage and grade drawdown compared to the May 2026 investor presentation (39.5 Mt @ 0.75% Cu). This indicates normal mine-life depletion rather than a reserve expansion.
The news is expected and telegraphed (promised for Q2 2026). The market's reaction (price declining from ~$3.20 in mid-May to ~$2.63 by late June) suggests the update was absorbed without a re-rating, aligning with a Routine - Positive classification.
The headline catalyst is the Q3 2026 EIA approval for the 10,000 tpd expansion, which remains the key near-term catalyst.

RIO · Price

Company Overview

Fenix Gold Mine (Chile): 100% owned oxide heap leach project. First gold pour achieved Jan 2026. Phase 1 targets 20,000 tpd and ~100 koz Au/year. Phase 2 expansion (80,000 tpd) is in pre-feasibility.
Condestable Mine (Peru): 99.1% owned underground copper-gold mine acquired Jan 2026. Operating at 8,400 tpd with plans to expand to 10,000 tpd. Long-life asset with 14-year mine life.
Strategy: Building a diversified Latin American producer with copper exposure complementing gold operations.

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