Rio2 Limited (TSX: RIO; OTCQX: RIOFF; BVL: RIO) has finalized an updated National Instrument 43-101 Technical Report for its recently acquired Condestable copper mine in the Department of Lima, Peru. The report, prepared by SLR Consulting (Canada) Ltd., confirms a 14-year operational mine life through 2039, expanded Mineral Resources and Mineral Reserves, and robust economics for the underground operation.
Acquisition and Operating Performance
Rio2 completed the acquisition of a 99.1% interest in Condestable from Southern Peaks Mining L.P. on January 30, 2026. Since closing, Condestable has delivered strong operating performance in line with expectations, generating immediate free cash flows from copper, gold, and silver production.
Key Operational and Financial Highlights
The report forecasts average annual production of approximately 18,000 tonnes of contained copper in concentrate, including an average of 12,900 ounces of gold and 304,800 ounces of silver per year at the current throughput rate of 8,400 tonnes per day. Average mill feed per year is projected to be 2.9 million tonnes, grading on average 0.73% copper, 0.15 g/t gold, and 4.28 g/t silver through the life of mine.
Life-of-mine copper C1 cash costs are estimated at US$1.00 per pound after by-product credits, with all-in sustaining costs projected at US$1.46 per pound. After-tax net present value at an 8% discount rate is US$710 million, with total undiscounted after-tax free cash flow of US$1,147 million based on average realized prices of US$4.99 per pound for copper, US$3,884 per ounce for gold, and US$55.19 per ounce for silver.
Updated Mineral Resource Statement
The updated global Mineral Resource Estimate, inclusive of Mineral Reserves, was prepared in accordance with CIM 2014 Definition Standards with an effective date of May 31, 2026. Total Measured and Indicated resources stand at 82.1 million tonnes grading 0.69% copper, 0.13 g/t gold, and 4.12 g/t silver, containing 565,000 tonnes of copper, 355,000 ounces of gold, and 10.87 million ounces of silver. This represents increases of 2.2%, 2.6%, and 9.7% respectively compared to the previous 2022 Technical Report.
Total Inferred resources are 22.2 million tonnes grading 0.76% copper, 0.09 g/t gold, and 2.78 g/t silver, containing 169,000 tonnes of copper, 66,000 ounces of gold, and 1.99 million ounces of silver, increases of 41.8%, 51.9%, and 52.4% respectively.
Management Commentary
Andrew Cox, President and Chief Executive Officer of Rio2, stated: “To complement Rio2’s growth strategy, the Company will be conducting studies to expand production at Condestable. The Company expects to receive approval for the modification of the mine EIA during Q3, 2026, which will permit an increase in production from 8,400 tonnes per day to 10,000 tonnes per day, and will continue to assess opportunities to expand production further. Condestable has shown great promise to remain as a long-life component of Rio2’s operating platform in Latin America.”
Mineral Resource Estimate Details
The Mineral Resource estimate for the Condestable mine is constrained within DSO panels above an NSR cut-off value of $39.00 per tonne, while the Raúl mine uses a cut-off grade of 0.4% copper. Long-term metal prices used are $4.80 per pound for copper, $2,500 per ounce for gold, and $33.50 per ounce for silver. Metallurgical recoveries of 91.3% for copper, 75.0% for gold, and 82.3% for silver were applied. The report will be filed within 45 days on SEDAR+ and will be available on the Company’s website.
