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Rio2 drops on enviro news

Kitco News

Rio2 (CVE:RIO) said today that Chile's regulators recommended that the environmental impact assessment for the Fenix Gold Project be rejected.

The Fenix Gold Project is 16,050 Ha. It is located in the Atacama region of Chile. The project has 5 million ounces measured and indicated.

Rio2 closed down 57% today to 23 cents.

"The Environmental Assessment Service (SEA) published last night the 'Informe Consolidado de Evaluación' (Consolidated Evaluation Report) with the recommendation to reject the EIA for the Fenix Gold Project," writes the company.

"It has been alleged that Fenix Gold has not provided enough information during the evaluation process to eliminate adverse impacts over the chinchilla, guanaco, and vicuña.

"The Consolidated Evaluation Report will be presented to the Comision de Evaluacion Regional which includes 11 governmental institutions with environmental competencies. These institutions will vote to approve or disapprove the EIA.

"Fenix Gold has been working diligently throughout the environmental assessment process to provide all the required information. Fenix Gold remains committed to continue working with the SEA and other governmental institutions to resolve and mitigate any potential impacts that need further consideration to secure approval for the project."

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