Project Spotlight – Fenix Gold Project Starts Construction
Chile continues to be a dominant force in the global mining industry, with substantial investment directed toward copper projects, while gold developments have received comparatively less attention. The recent commencement of construction at Rio2 Limited’s Fenix Gold Project underscores the country’s ongoing efforts to diversify its mining sector. Over the past five years, only one other greenfield gold project has been developed—Gold Fields’ Salares Norte, which began production in 2024. With the launch of Rio2’s Fenix Gold Project, it becomes only the second major gold project to advance in recent years. Located in the mineral-rich Maricunga Belt of the Atacama Region, this project is expected to play a significant role in strengthening Chile’s gold production in the years ahead.
Latest Developments
Fenix Gold Project Overview
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Reserves and Production: The project boasts proven and probable mineral reserves of 1.77 million ounces of gold, with an average grade of 0.48 grams per tonne. Over a 17-year mine life, total gold production is projected at 1.32 million ounces, averaging 91,000 ounces annually during the first 12 years.
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Operational Details: Ore mining is scheduled at a rate of 20,000 tonnes per day. The operation will utilize run-of-mine heap leaching, with an anticipated average gold recovery rate of 75%.
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Economic Highlights: The project demonstrates strong financial metrics, including an after-tax net present value (NPV5) of $210.3 million and an internal rate of return (IRR) of 28.5% at a gold price of $1,750 per ounce. Initial capital expenditures are estimated at $117 million, with sustaining capital costs of $88 million over the life of the mine.
- Infrastructure and Logistics: A 565-person camp has been constructed to support the workforce. Water required for operations will be transported from Copiapó, approximately 158 kilometers from the site. The construction phase is expected to span approximately 14 months from the receipt of relevant permits and contractor mobilization.
- Job Creation: 1,200 workers during construction, 550 full-time jobs over the mine’s lifespan.
- Grade Control Drilling: 12,000m program starts February 2025 to optimize ore extraction. Fenix South drilling from February to April (first ore source for production). Fenix North drilling in October and November.
Expansion Potential
- Potential Production Increase: Up to 250,000 – 300,000 ounces annually
- Processing Capacity Increase: From 20,000 tpd to 80,000 – 100,000 tpd
- Additional Water Source: Study underway to assess industrial or desalinated water via pipeline
- Power Source for Expansion: Connection to the regional power grid
- Expected Study Completion: During Stage One construction phase
Conclusion: A Transformative Project for Chile’s Gold Industry
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