After years of dedicated effort and strategic planning, Canadian-listed mining company Rio2 Ltd has achieved a pivotal milestone, officially transitioning from developer to producer. The company has successfully completed its first commercial gold pour at the fully-owned Fenix gold mine, located in Chile's renowned Maricunga gold belt.
A Golden Milestone Achieved
The historic event took place on Friday, January 23, 2026, with the pour yielding approximately 897 ounces of freshly smelted gold. This significant achievement follows an earlier commissioning run in December 2025, which produced around 358 ounces of gold. Combined, these initial operations have delivered over 1,250 ounces of gold, along with approximately 131 ounces of silver, marking a strong start for the new operation.
More Than Just Bullion
For Rio2, which is listed on both the Vancouver and Toronto stock exchanges, this moment represents far more than the production of its first gold bar. It signifies the successful conclusion of construction risks and the beginning of anticipated cash flows. This achievement culminates a challenging eight-year journey that began with the company's merger with Atacama Pacific Gold Corporation back in 2018.
Executive chairman Alex Black, a former Western Australia resident, expressed his pride in the team's accomplishment. "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," he stated. Black extended congratulations to Andrew Cox and the combined Rio2 and Fenix Gold team for delivering the project on budget and in record time.
Strategic Location and Design
Perched at an impressive altitude of 4,500 metres in Chile's legendary Maricunga gold belt, the Fenix gold project is a low-sulphidation epithermal deposit spanning 2,000 hectares. It hosts a substantial resource of 389 million tonnes of ore, grading 0.38 grams per tonne of gold, equating to 4.8 million measured and indicated ounces of the precious metal.
The project is situated in a prosperous mining neighbourhood, sharing the region with established operations such as Kinross Gold's La Coipa Au-Ag mine, Hochschild's Volcan gold project, and Kinross' Maricunga gold mine.
Environmentally Conscious Operations
Fenix has been designed as a run-of-mine heap leach operation, which significantly minimises its environmental footprint. This method eliminates the need for crushing or tailings facilities by piling ore on a thick polyethylene pad and applying a targeted chemical solution to dissolve and extract the gold.
Production Targets and Economic Outlook
With the first gold now successfully poured, attention turns to the ramp-up phase. Management is progressively increasing ore placement rates, targeting steady-state operations of 20,000 tonnes per day as 2026 progresses. The company guides toward gold production of between 60,000 and 70,000 ounces for the year, positioning Fenix to become a meaningful contributor to Chile's gold output.
Looking further ahead, the mine is projected to produce approximately 91,000 ounces of gold annually at 0.54 grams per tonne during its first 12 years. Over its full 17-year life, average annual production is expected to be around 82,000 ounces at 0.48 grams per tonne.
A 2023 feasibility study valued the project at US$210 million (approximately A$304 million) after tax, based on a conservative gold price assumption of US$1,750 per ounce. With current gold prices significantly exceeding these assumptions, the company stands to benefit from materially stronger cash flows, faster payback periods, and improved project economics as operations move through ramp-up into steady-state production.
Community and Economic Benefits
The Fenix project will provide substantial employment opportunities, with 1,200 local people employed during construction and 800 during the anticipated 17-year mine life. This development represents significant economic benefits for the Atacama region, where the sparse population relies heavily on mining for steady incomes and economic stability.
Future Growth and Expansion
Management has identified the Fenix mine as Rio2's cornerstone asset, which will fund the company's expansion of its Latin American footprint. This includes bedding down the recently acquired Condestable copper mine in Peru as Rio2 builds a diversified, multi-commodity production platform.
With construction risks now removed and a clear production ramp-up plan in motion, Rio2 enters 2026 with considerable momentum. As tonnes accumulate on the heap leach pad and gold continues to flow, the company's long-awaited transition to producer status is complete. The next chapter begins as the gold price soars, promising exciting developments for this ambitious mining enterprise.
