Rio2 Activates New Waste Processing System at Condestable Mine in Peru

• Following 18 months of construction and a USD 27 million investment, Rio2 has entered the final testing phase of a new tailings filtration facility at the Condestable copper mine in Peru.
• The facility is designed to process the entirety of Condestable's daily mining waste at a capacity of 8,400 tonnes per day, with full commercial operations targeted for the third quarter of 2026.
• The shift to dry-stack tailings (a safer method of storing mine waste by removing most of the water content) is projected to raise on-site water recovery from approximately 60% to nearly 90%.
• The new system supports Condestable's ongoing Copper Mark Certification, an internationally recognised benchmark for responsible copper production.
• A new dedicated waste storage area, TSF #6, is in advanced permitting stages with an initial approved capacity of 43 million tonnes and an ultimate design capacity of 170 million tonnes.

Rio2 Limited (TSX: RIO; OTCQX: RIOFF; BVL: RIO) is a Canadian-based mining company producing precious metals and copper across South America. The company operates the Fenix Gold heap leach mine in Chile and, following a recent acquisition, the Condestable underground mine in Peru, which produces copper, gold, and silver. Rio2 is led by a management team with proven technical skills and a track record in capital markets. The company and its subsidiaries, Fenix Gold Limitada and Compania Minera Condestable S.A., apply environmental standards beyond those mandated by regulators in the territories where they operate.

Commissioning of the Tailings Filtration Facility at Condestable

Rio2 has formally entered the commissioning phase of its new Tailings Filtration Facility (TFF) at Condestable, an underground copper mine in Peru's Lima Department. Tailings are the fine-grained waste material left behind after ore has been processed to extract valuable metals. Under a conventional approach, this material is mixed with water and stored in large, contained ponds. The new TFF changes this by filtering most of the water out of the waste before storage, producing a drier, more stable output known as dry-stack tailings.

The facility was built over 18 months at a total capital cost of approximately USD 27 million. At an installed capacity of 8,400 tonnes per day, it is sized to handle 100% of Condestable's current tailings output and has been engineered to accommodate higher production levels should the mine expand. The commissioning process, which involves a controlled series of tests to verify the system performs to its design specifications, is expected to be completed within 10 weeks.

President and CEO Andrew Cox stated: 

"We are very happy about this important step at Condestable. The operating team's commitment to the highest environmental and safety standards has been impressive and the beginning of the commissioning phase of the filter plant is strong evidence of this effort." 

Full commercial operations are scheduled for the third quarter of 2026.

Transition to Dry-Stack Tailings and Environmental Benefits

The shift to dry-stack tailings changes how Condestable handles its operational waste. Unlike conventional wet impoundments, dry-stack storage involves depositing compacted, low-moisture material onto engineered terrain, which materially enhances safety and environmental standards at the site. Rio2 states this positions Condestable as a best-in-class operation with respect to tailings management.

Once fully operational, the filtration process is projected to raise total water recovery at Condestable from approximately 60% to close to 90%. According to the company, this improvement provides the capacity to support future growth projects without requiring additional water permits or increasing the use of local water resources.

The upgrade also directly supports Condestable's ongoing Copper Mark Certification, a globally recognised scheme that independently verifies responsible production practices across the copper supply chain. Rio2 states the TFF investment aligns with Condestable's existing commitment to this certification.

Tailings Storage Facility #6 Permitting and Future Capacity Expansion

In parallel with the TFF commissioning, Rio2 is advancing the permitting process for Tailings Storage Facility #6 (TSF #6), a new dedicated storage area that will receive the filtered dry tailings output. The permitting process is in its advanced stages, and environmental approval is expected during the third quarter of 2026, in line with the projected start of full commercial TFF operations.

Upon initial approval, TSF #6 will have a permitted storage capacity of 43 million tonnes. The facility has been designed with staged expansion capability, with a total capacity of up to 170 million tonnes. Rio2 states this design allows for future extensions to the life of the mine. Filtered dry tailings will initially be deposited within existing, permitted impoundment facilities until TSF #6 receives its environmental approval.

CEO Andrew Cox added that the TFF commissioning is: 

"an important step for the next stage of growth at the mine, which we at Rio2 will be excited to unveil before the end of this year." The company has not provided further details on the nature of these growth plans at this time.

Conclusion

With the TFF commissioning now underway, the key near-term milestones include the conclusion of the 10-week commissioning period, receipt of environmental approval for TSF #6, and the start of full commercial TFF operations, all targeted for the third quarter of 2026. The company has also indicated that a separate update on the next stage of growth at Condestable will be released before the end of 2026. Filtered dry tailings will be directed to TSF #6 upon its approval, with the facility's staged design intended to support the mine's long-term operational continuity.

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