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In its first 12 years, Fenix is forecast to churn out around 91,000 ounces of gold per annum at 0.54g/t, before averaging 82,000 ounces a year across the mine’s 17-year life.
A feasibility study completed in 2023 pegged the after-tax value of the project at US$210 million (A$323 million) based on a conservative gold price of US$1750 (A$2697) an ounce and a payback of just 3.5 years.
Modelling last year using a updated, but still wildly conservative gold price estimate of US$2250 (A$3467), sent the forecast numbers surging, with the project’s net present value (NPV) rising to US$546 million (A$841 million) and the internal rate of return (IRR) to 64 per cent.
With gold now soaring past US$4000 (A$6000) an ounce – nearly double those 2024 assumptions – Fenix Gold’s economics have gone from strong to spectacular. Every ounce produced under current prices could deliver margins that would be high enough to turn even the thin Atacama air thick with excitement.
As a run-of-mine heap-leach operation, Fenix Gold’s process eliminates the need for crushing or tailings storage, sharply reducing its environmental footprint. The 17-year mine life is expected to support about 1,200 jobs during construction and 550 throughout operations, providing a major economic boost to Chile’s Atacama region.
Management says the project reflects years of consultation with local communities and regulators, integrating environmental and social safeguards from the outset.
With funding now secured, permits in hand and construction nearing completion, Rio2 is closing in on its long-held goal of bringing Fenix Gold into production in the heart of Chile’s world-famous Atacama gold belt.
Fully financed through its US$175 million streaming deal with Wheaton Precious Metals and perfectly positioned to capitalise on record gold prices, Rio2’s timing could hardly be better.
When the first doré bars emerge in January, the company will move from builder to producer, delivering a low-cost and environmentally conscious heap-leach operation high in the Andes.
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