Rio2 (RIO) 2025 Precious Metals Summit - Beaver Creek summary

Project overview and resource details

• Fénix Gold Project in Chile is 11 months into a 14-month construction schedule, targeting a large oxide gold resource of 4.8 million ounces at CAD 1,800 gold, with 1 million ounces inferred and 1.8 million ounces proven and probable reserves; deposit is open at depth and along strike.

• Employing a staged development: initial 20,000 tons/day operation due to water restrictions, with plans to expand to 80,000 tons/day; construction is fully permitted and financed.

• Project is 100% oxide with low copper and silver content, suitable for ROM heap leach processing and is the only such project in the Maricunga Gold Belt.

• Management team has significant experience from previous successful projects in Peru and other mining operations.

• Exploration potential remains high, with plans to use AI and big data for future drilling targets once cash flow begins.

Regional context and operational challenges

• Located in the Maricunga Gold Belt, adjacent to major operations and projects, but the region is water-constrained.

• Initial water solution involves trucking treated industrial water from Nueva Atacama to site, enabling ramp-up to 20,000 tons/day.

• Long-term water solution is a pipeline or desalinated water from local providers, with scoping and pre-feasibility studies underway and established business relationships.

• Pipeline project estimated at CAD 400 million, unlocking expansion to 80,000 tons/day and 300,000 ounces/year for over 10 years.

• Infrastructure includes leaching facilities, ADR processing plant, and construction laydown areas.

Construction progress and production outlook

• Camp facilities for 600 workers and leach pad construction are complete; plant commissioning set for November, with gold production targeted for January next year.

• Mining will start at Fenix South, the lowest altitude pit, with recent drilling covering two years of mining material.

• ROM trial achieved 75% recovery, allowing removal of the crusher from the circuit.

• EIA approval received in December 2023, with ongoing permitting and financing supporting construction.

• Mine expansion study and EIA for the next phase are in progress, with a PFS release targeted for February 2024.