Rio2 launches major drill assault at Peruvian copper mine

TSX-listed Rio2 Limited has unleashed a company-wide exploration blitz, kicking off the first phase of a massive 33,870-metre surface drilling program at its Condestable copper mine in Peru, while also advancing its Canadian tungsten asset towards a 2027 drill campaign.

The new exploration push at Condestable follows a comprehensive geological mapping and geophysical survey campaign. It has been structured in two parts, with the first phase comprising 85 drill holes for 16,750m, now underway. The second phase will involve another 72 holes for 17,120m, which will require new access and permits, a process the company anticipates will take about six months.

The work is designed to test for extensions to mineralisation at the project, which already boasts a 14-year mine life and an after-tax net present value of US$710 million (A$1 billion).

Notably, a recently completed 57,740-hectare drone magnetic survey, combined with geological and geochemical data, has identified six new priority exploration targets in the district: Cerro Pacay, Cerro Perico, Loma de Vinchos, San Marcos, Condestable 10 and Punta Colorada. The new hotspots suggest the mineralised system could extend well beyond the current mine footprint, stretching along strike and regionally across the expansive 460-square-kilometre project.

Meanwhile, at Rio2’s Fenix Gold project in Chile, surface drilling has been put on hold due to adverse weather, worker safety considerations and contractor standby costs. The company plans to fire up the remainder of the program in January 2027, taking advantage of Chile’s warmer summer conditions.

Before the suspension, the company had completed 43 drill holes for 14,669m of a planned 21,880m campaign. The program used a combination of reverse circulation (RC) and diamond drilling/tailing, designed to increase geological confidence in resources beneath the existing reserve pit.

Rio2 says 60 per cent of the samples from the completed drilling have been assayed and it expects to receive all analytical results within the next two months. The company is aiming to deliver an updated mineral resource estimate for the Fenix mine in 2027.

Rounding out the multi-pronged exploration update, Rio2 has also made material progress at its revitalised Kalzas tungsten project in Canada’s Yukon. During 2026, the company advanced the project through technical studies, fieldwork, permitting and community engagement and has since secured a class one exploration permit for detailed exploration and mapping of its interpreted intrusion-related tungsten system.

With the groundwork laid, Rio2 now plans to carry out an initial 2000m scout core drilling program during the 2027 summer field season, with an estimated budget of US$1.5 million (A$2.2 million).

The outcome of the Canadian program will help determine whether the project remains within Rio2’s growing stable of assets or is ultimately spun out, allowing management to sharpen its focus on the company’s burgeoning Chilean copper portfolio.

In the meantime, Rio2 has plenty on its plate. The rigs are turning at its Peruvian cash-generating operation, assays are stacking up from its Chilean copper growth projects, assays are still pouring in from Fenix Gold and a maiden drill campaign is about to get underway in Canada. Few juniors have so many irons in the fire at once, giving the company multiple shots at delivering a meaningful discovery or expansion across three countries.

Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au