Rio2 Limited

Website: www.rio2.com
Primary ticker: TSXV:RIO, OTCQX:RIOFF, BVL:RIO
Stage of development:Exploration, Development
Primary minerals: Gold
Project to promote: Fenix Gold Project
Project location: Chile

Live financials

Cash: CAD$15.8M
Debt: Nil

Major shareholders:
Ontario (Eric Sprott) – 14.29%
Alex Black – 8.35%
Albrecht Schneider – 6.35%
Van Eck Assoc. Corp. – 6.19%
PowerOne Capital Markets – 4.23%
Management & Board – 18.39%

Rio2 is a mining company with a focus on development and mining operationswith a team that has proven technical skills as well as a successful capital markets track record. Rio2 is focused on taking its Fenix Gold Project in Chile to production in the shortest possible timeframe based on a staged development strategy. In addition to the Fenix Gold Project in development in Chile, Rio2 Limited continues to pursue strategic acquisitions where it can deploy its operational excellence and responsible mining practices to build a multi-asset, multi-jurisdiction, precious metals company focused in the Americas.

Management Profile

Alex Black, President& CEO

Mr. Black lives in Lima, Peru and has 39 years experience in the mining industry. Mr. Black holds a BSc in Mining Engineering from the University of South Australia and is a member of the Australasian Institute of Mining and Metallurgy.

In 2009 Rio Alto Mining Limited was formed after Mr. Black and his team successfully negotiated the acquisition of the La Arena Gold Project from Iamgold Corp. In 2014, Rio Alto also completed the successful acquisition of Sulliden Gold and the Shahuindo Gold Project for C$300M. Mr. Black, as President & CEO of Rio Alto Mining Limited and his experienced management team built Rio Alto from a C$12M company in 2009 to a C$1.2Bn company in 2015 at the time of the acquisition by Tahoe Resources Inc.


What is your rationale for attending 121 Mining Investment?

Improving market and investor exposure as the company enters the EIA review process in Chile for its Fenix Gold Project.


What recent news would you like to highlight to investors attending?

Work continues on the filing and assessment of the EIA for the Fenix Gold Project despite the current issues related to COVID-19. Work also continues on optimizing capex and opex outlined in the PFS released in August 2019. Once the EIA is filed, work will begin on sourcing financing options for the construction of the project currently planned to commence in Q4 2021.


What are your key goals for the next 3, 6 and 12 months?

3 Months:

File the EIA for the Fenix Gold Project with the Chilean authorities.
Complete Engineering work to finalize opex and capex optimization.
Engage with potential financiers of the project.
Continue to evaluate projects/companies for potential merger and/or acquisition.

6 Months:

Manage the observation process of the EIA evaluation.
Continue engaging with potential financiers.
Continue to evaluate projects/companies for potential merger and/or acquisition.

12 Months:

Manage the observation process of the EIA evaluation.
Select the preferred financing solution for the project.
Continue to evaluate projects/companies for potential merger and/or acquisition.


What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

The uncertainty of the effect of COVID-19 on the EIA evaluation process and financing appetite of potential financiers of the project.


In a sentence, what do you think makes your company such a compelling investment?

Rio2 is advancing the largest undeveloped gold heap leach project in the Americas. With modest start-up capital of approx USD 120M and an Enterprise Value of less than USD 10 per resource ounce (based on 5M oz Au M&I) the Fenix Gold Project is currently on schedule for construction in Q4 2021.

Analyst Insight – provided by Independent Investment Research

Rio2 Limited is a TSX-V-listed mine development company that’s focused on taking its Fenix Gold Project in Chile to production in the shortest possible timeframe based on a staged development strategy.

The Fenix Gold Project, located in the Atacama Region in Chile, is one of the largest undeveloped pre-feasibility stage gold oxide projects in the Americas. This is a well-known district that contains over 70 million ounces of gold and hosts the La Coipa and Maricunga mines, as well as the Volcan, Caspiche, Lobo Marte and Cerro Casale deposits.

Rio2 recently announces an updated mineral resource estimate (MRE) and Pre-Feasibility Study (PFS) for its Fenix Gold Project, which is the company’s base case to accelerate development and start production in the shortest possible time.

The updated MRE for the Project is 5.0 million oz of gold in the measured and indicated category and 1.4 million oz of gold in the inferred category constrained within a $1,500 gold price pit shell. The mineral resource remains open at depth and along strike.

This PFS is strategically focused on an optimally configured mine plan that will facilitate the shortest possible timeline to construction/production, a lower initial capex, higher grades initially being mined, and a lower initial strip ratio as compared with the 2014 PFS. The PFS focuses on a low-cost heap leach gold mine with 1.83 million ounces of gold reserves that will produce 1.37 million oz of gold.

The PFS contemplates mining ore at a rate of 20,000 tonnes per day with water for the project being trucked from Copiapo. To maximize cash-flow, high-grade ore will be placed on the leach pad during the initial 13 years of production and low-grade ore will be stockpiled for leaching in the subsequent 3 years of production giving a total mine life of 16 years. Average annual gold production during the first 13 years will be 93,000 oz and 50,000 oz during the final 3 years of production as stockpiled ore is being crushed and leached. to Karora Resources Inc.