01:00 PM EST, 01/13/2025 (MT Newswires) -- Rio2 ( RIOFF ) on Monday said construction at its $122-million Fenix Gold Mine in Chile is expected to be complete in November and first gold production is guided for January next year.

Next month the company will start a 12,000-meter grade-control drilling program focused on the first three years of production planned from the Fenix South and Fenix North pit areas.

Rio2 ( RIOFF ) will also complete a 25,000-meter electromagnetic survey to help generate geophysical targets, to grow the mineralized resource at Fenix. Resource expansion drilling is currently planned to occur once gold production has started at the mine.

A preliminary internal study suggests that the mine may be expanded from its first phase 20,000 tonnes per day ore-mining rate to around 80,000 tonnes per day. This could see gold production rise from an initial rate of 100,000 ounces per year to a target range of 250,000 to 300,000 ounces per year. The company has initiated a mine expansion study with a target completion date by the end of this year.

Recruitment activities have also focused on hiring key personnel for construction activities and future mine operation roles. There are currently over 531 staff and contractors work on-site.

Rioo2 was last seen down $0.02 to $0.61 on the TSX Venture Exchange.

Price: 0.61, Change: -0.02, Percent Change: -3.17