en.Wedoany.com Reported - Rio2 has updated its technical report for the Condestable copper mine in Peru, confirming an extended mine life, growth in mineral resources and reserves, and strong economic performance.

The Canadian company, listed on the Toronto Stock Exchange (TSX: RIO), acquired a 99.1% stake in the Condestable mine from Southern Peaks Mining L.P. on January 30, 2026. Since the acquisition, the mine's operations have met expectations, generating immediate free cash flow from copper, gold, and silver production.

The technical report, prepared by global consulting firm SLR Consulting (Canada) Ltd., confirms a 14-year mine life for the underground operation, extending through 2039. Based on the current processing capacity of 8,400 tonnes per day, average annual production is expected to be approximately 18,000 tonnes of copper in concentrate, along with 12,900 ounces of gold and 304,800 ounces of silver.

Andrew Cox, Chairman and CEO of Rio2, stated that studies will be conducted to expand Condestable's production in line with the company's growth strategy. The company expects to receive approval for a modification to the mining environmental impact assessment in the third quarter of 2026, increasing daily production from 8,400 tonnes to 10,000 tonnes, and will continue to evaluate further expansion opportunities. Condestable has demonstrated its potential as a long-life component of Rio2's Latin American operating platform.

The operation's C1 cash cost for copper, net of by-product credits, is $1.00 per pound, providing a competitive advantage in the global mining industry. All-in sustaining costs (AISC) over the mine life are estimated at $1.46 per pound of copper.

The after-tax net present value, discounted at 8%, reaches $710 million, with total after-tax free cash flow estimated at $1.147 billion over the mine life. These figures are based on average realized copper prices of $4.99 per pound, gold at $3,884 per ounce, and silver at $55.19 per ounce.

EBITDA over the mine life is projected at $2.034 billion, based on total revenue of $3.512 billion, reflecting the economic robustness of the underground operation.

Total measured and indicated mineral 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. Compared to the 2022 technical report, copper increased by 2.2%, gold by 2.6%, and silver by 9.7%.

Inferred mineral resources total 22.2 million tonnes, with more significant increases: copper up 41.8%, gold up 51.9%, and silver up 52.4%, reflecting ongoing resource replenishment during operations.

Total proven and probable mineral reserves amount to 36.5 million tonnes, grading 0.73% copper, 0.15 g/t gold, and 4.28 g/t silver, containing 267,450 tonnes of copper, 176,890 ounces of gold, and 5.02 million ounces of silver.

Rio2 is executing a 46,480-meter diamond drilling program for 2026, aimed at replenishing and expanding mineral resources, while completing infill drilling to establish a short-term reserve model. As of May 30, 2026, 17,200 meters have been completed, representing 37% of the annual target.

The company is also advancing an exploration program targeting near-surface copper-gold-silver mineralization, which may be amenable to open-pit mining in the Condestable and Raúl areas. Initial work includes detailed geological mapping and reinterpretation of electromagnetic geophysical surveys conducted in 2012.

A third exploration component involves regional-scale geological and structural mapping across the 46,000-hectare mining concession, combined with drone magnetic surveys. Rio2 has assembled a team of four geologists with experience in mineral exploration to execute a systematic program, applying artificial intelligence and machine learning techniques to generate new brownfield targets.

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