RIO: Highlights from Our Site Visit to the Fenix Gold Project
What you need to know:• We visited Rio2’s Fenix Gold Project near Copiapó, Chile on March 25th.
• The visit was valuable in better understanding the layout of the project, progress on construction, the scale of the asset, and team behind it.
• As a reminder, The Fenix Gold Project is the largest fully permitted and financed gold heap leach project in the Americas. The management team comes from Rio Alto, which was highly successful prior to its merger with Taho Resources in a C$1.3B transaction.
• We recently initiated coverage on RIO, read the report here.
On March 25th, we visited Rio2’s (RIO:TSXV, RIOFF:OTC) permitted and fully financed Fenix Gold Project in Chile. The visit was highly valuable in better understanding the size, scale, and layout of the project while also getting an update on the construction progress. We spent the day with CEO Andrew Cox and gained insight into the project, construction timelines, and growth plans moving forward. We are maintaining our BUY rating and C$1.40/share target price on Rio2.
Site Visit Highlights
• During the visit, we spent the night at the mining camp along the main highway, prior to making the ~40-minute drive further up the mountain to site.
• The camp was fully constructed with offices and sleeping quarters and is fully built out to accommodate the large workforce during the construction phase.
• All long-lead items are secured, and the project construction is on track for first gold in Q1/26. Ore could potentially begin being placed on the pad as early as September or October of this year.
• Construction management appeared to be well organized and professional.
• The site benefits significantly from natural valleys for the leach pad, stockpiles, and waste dumps. Additionally, operations benefit from gravity as most haulage routes are on a decline, reducing fuel usage and haulage times.
Rio Tinto is engaged in finding, mining and processing mineral resources. Co. has four product groups: iron ore, which supplies the global seaborne iron ore trade; aluminium, which includes bauxite mines, alumina refineries, and aluminium smelters; Copper and Diamonds, which has managed operations in Australia, Canada, Mongolia and the U.S., and non-managed operations in Chile and Indonesia, with by-product including gold, silver, molybdenum and others such as sulphuric acid, rhenium, and lead carbonate; and Energy and Minerals, which comprises mining, refining and marketing operations across borates, coal, iron ore concentrate and pellets, salt, titanium dioxide and uranium sectors.
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