Rio2's Condestable copper mine shows $710M after-tax NPV at $4.99 copper. CEO Cox targets 10,000 tpd throughput after Q3 EIA approval.
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Rio2 has extended the operational life of its Condestable copper mine in Peru and increased both mineral resources and reserves, the company said Tuesday. The updated technical report, prepared by SLR Consulting, covers the underground operation Rio2 bought a 99.1% stake in from Southern Peaks Mining in January.
The mine has been generating free cash flow from copper, gold and silver production since the deal closed, the company said. The report puts after-tax net present value at roughly $710 million, using an 8% discount rate and a life-of-mine average copper price of $4.99 per pound. Gold is modeled at $3,884 an ounce, silver at $55.19.
At current spot prices – $6.00 copper, $4,200 gold, $65 silver – the after-tax NPV rises to about $904 million.
CEO Andrew Cox said the company plans to push daily throughput from 8,400 tonnes to 10,000 tonnes. The environmental impact assessment modification is expected in the third quarter. "Condestable has shown great promise to remain as a long-life component of Rio2's operating platform in Latin America," Cox said in the release.
Rio2 has a 46,480-meter diamond drilling program for 2026, split between near-mine resource replacement and expansion. As of late May, 17,200 meters had been completed, about 37% of the annual target. The company said it expects to hit the full program by year-end.
A second exploration stream targets near-surface mineralization in the Condestable and Raúl areas that could be mined via open pit. Geological mapping and a reinterpretation of a 2012 geophysical survey are underway, with drilling planned for the second half of the year.
The third initiative covers district-scale mapping across 46,000 hectares of mining concessions, plus a drone-based magnetometry survey. Rio2 said it will integrate the new data with existing geochemistry using machine learning to generate brownfield targets. A four-person exploration team has been hired.
Total life-of-mine sustaining capital is estimated at $154 million. The report uses a production-based gold credit that boosts modeled gold output by 29% and total gross revenue by roughly 4%. SLR's qualified person said the approach is reasonable given that some mine areas lack assay support but are known to contain gold from production data.
The technical report will be filed on SEDAR+ within 45 days.
Rio2 trades on the TSX under RIO, on the OTCQX as RIOFF, and on the BVL as RIO. The stock page is available here.
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