Rio2 Limited (TSX-V:RIO, OTCQX:RIOFF) said it is evaluating various options to advance its Fenix gold project in Chile, one of the largest undeveloped gold oxide, heap leach projects in the Americas.
The news comes following the Atacama Regional Evaluation Commission's decision to not approve the Environmental Impact Assessment (EIA) for the project.
In a statement, Vancouver-based Rio2 thanked investors, government authorities and community organizations that participated in the consultation process for their support.
READ: Rio2 says decision on Fenix environmental permits expected in the coming weeks
The company said it is waiting for the Environmental Qualification Resolution (RCA), which is the administrative document with which the Environmental Assessment Service (SEA), outlines the rationale for their decision.
Rio2 expects to receive the RCA within the next three weeks, after which the company will finalize its plans.
Once the EIA action plan is completed, the company anticipates announcing a revised timeline of its proposed activities and how it intends to execute and finance the plan forward, it said.
“Key considerations for developing a plan forward is to use all the well-established options within the permitting process and working with all relevant government authorities to ensure we secure a successful path forward for the development of the Fenix Gold project,” Rio2 told shareholders.
“The company is thankful for the support it has received following the EIA decision from various government authorities and community organizations that participated in the Participacion Ciudadana (Citizen Participation) and Consulta Indigena (Indigenous Consultation) as part of the EIA process. The company is also encouraged that the SEA decision states that the EIA fulfills all the applicable regulations and meets the environmental requirements for the granting of applicable sectorial permits.”
Rio2 said it had around US$33 million cash on hand, with about $25 million working capital allocated to pre-development activities.
Fenix hosts a measured and indicated mineral resource of five million ounces of gold. The operation is expected to generate employment for at least 1,200 people during the construction phase and 550 people during the 17-year operations phase.
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