Rio2 launches production at its flagship Fenix Gold project amid record gold prices.
Canadian mining company Rio2 Limited is preparing to produce gold in Chile for the first time. It initiated production in January in limited quantities, marking a milestone with the launch of its flagship Fenix Gold project, located in the Maricunga gold belt in Chile’s Atacama Region.
Getting to this point has not been easy, company representatives acknowledged to Chilean business publication Diario Financiero. But having overcome setbacks in obtaining the environmental permit, the company’s mining venture is initiating operations during a boom in gold prices, which have reached unprecedented levels of above US$4,600 per ounce. “We are aware of the current strong gold prices, but this is not the only factor we take into account in our decisions,” the company noted. The decision to move forward with the US$235 million project was based on a reference gold price of US$1,750 per ounce—approximately 60% below current levels.
In an interview with Diario Financiero, the company stated that at current prices “there is significant international interest in Chile as a mining destination, particularly in gold, considering that the local gold industry remains relatively small. We expect to see increased exploration activity and more international players evaluating the country.”
The Fenix Gold project has advanced rapidly. Following a 15-month construction period, the mine is ready to begin reporting production figures to the market. “Production in January will be limited,” the company indicated, adding that 2026 will be defined by the ramp-up phase of the operation. “This year, we expect to produce approximately 60,000 to 70,000 ounces. Once we are fully operational—which we expect to be in 2027—annual production should be close to 100,000 ounces.”
These figures would add approximately 1.8 metric tons of gold to Chile’s output this year and nearly 3 metric tons next year, representing increases of 4.5% and 7.5%, respectively, compared to the country’s gold production in 2025 (see graph).
Fenix Gold will be complemented by production from Salares Norte, operated by South African company Gold Fields, which expects to exceed 500,000 ounces (14
metric tons) in 2026. In total, Chile’s gold production is projected to increase by at least 35% this year, placing it among the top 20 producers globally, with production levels close to those of countries such as Bolivia and Côte d’Ivoire.
However, the future for Fenix Gold appears even more promising. The company has signed two memoranda of understanding with desalination plants in Copiapó. Securing desalinated water would enable an expansion of daily ore processing capacity, which “could allow Fenix to produce approximately 300,000 ounces of gold per year for nearly 10 years, based solely on current resources, without considering the potential of future exploration near the project.”
If this is achieved, Chile could surpass 60 metric tons of gold production annually.
The company expects to select the desalination plant that it will operate with during the second quarter of 2026. Rio2 also indicated that it plans to resume exploration around the deposit and at greater depth once the ramp-up phase is complete. Regarding another potential initiative in Chile, the company stated that “it is something we will likely revisit with greater focus toward 2027, once Fenix Gold is fully operational.”
Source: Diario Financiero.