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Rio2 Ltd.

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Summary

Project:

Fenix

Deposit:Fenix
Location:Chile
Commodities:Gold
Date:9/4/2019
Report Code:NI43-101
Report Type:Pre-Feasibility Study
Project Stage:Pursuing Feasibility Study
Report details:4-9-2019: Rio2 Ltd. announces a Pre-Feasibility Study report for its Fenix deposit at the Fenix project. Updated PFS results incl. post-tax NPV (5%) of $121M, IRR of 27.4%. Rio2 Limited (“Rio2” or the “Company”) (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) today a
Resources:(Reserve, P+P): 116Mt @ 0.49g/t Au at project
CP/QP:[Resources]: Mario Rossi (GeoSystems International Inc.)
ABSTRACT:Rio2 Limited (“Rio2” or the “Company”) (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) today announces the results of the updated mineral resource estimate (“MRE”) and Pre-Feasibility Study (“PFS”) for its 100% owned Fenix Gold Project (“Fenix Gold” or the “Project”) located in the Maricunga Mineral Belt of the Atacama Region, Chile. This updated PFS is the Company’s base case to accelerate development and start production in the shortest possible time. All amounts in this news release are in US dollars unless otherwise indicated. Base case economics for this PFS were calculated using a $1,300 per oz gold price. The updated MRE for the Project is 5.0 million oz of gold in the measured and indicated category and 1.4 million oz of gold in the inferred category constrained within a $1,500 gold price pit shell. The mineral resource remains open at depth and along strike. This PFS is strategically focused on an optimally configured mine plan which will facilitate the shortest possible timeline to construction/production, a lowerinitial capex, higher gradesinitially being mined, and a lowerinitialstrip ratio as compared with the 2014 PFS. The PFS focuses on a low-cost heap leach gold mine with 1.83 million ounces (“oz”) of gold reserves that will produce 1.37 million oz of gold. The PFS contemplates mining ore at a rate of 20,000 tonnes per day (“tpd”) with water for the project being trucked from Copiapo. This compares with the ore mining rate of the 2014 PFS which was a constant 80,000 tpd with water for the project being piped from Copiapo. To maximize cash-flow, high-grade ore will be placed on the leach pad during the initial 13 years of production and low-grade ore will be stockpiled for leaching in the subsequent 3 years of production giving a total mine life of 16 years. Average annual gold production during the first 13 years will be 93,000 oz and 50,000 oz during the final 3 years of production as stockpiled ore is being crushed and leached.

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