The company reported 28 reverse circulation holes and six surface trenches representing the final 4,830m of a 7,066m drilling programme that commenced in November 2018. This programme focused on the US$728 pit shell defined in the October 2014 pre-feasibility study.

The drilling aimed to intersect and define east-west structural feeders that geologists believe are controlling the near surface higher-grade mineralisation. Company geologists believe there is a high-grade component to the resource related to structures and breccias, which has not been defined in the current resource estimate that has been simply constrained by a 0.15g/t gold grade shell without considering geological domaining.

"Our geologists have been busy over the past eight months, re-logging all the previously drilled diamond core and approximately 21,000m of RC drilling while also completing a detailed surface mapping program to allow the company to build a simple and concise 3D geological model as a basis for our new resource estimate," said SVP geology Enrique Garay.

Fenix has proven and probable reserves of 294.4 million tonnes grading 0.4g/t for 3.7 million ounces. A new resource estimate is planned for completion at the end of the first quarter. It will follow this with an outline work program for the rest of the year in the second quarter.

RIO2 shares (TSXV:RIO) are trading at $51 million. Its share price has fallen 17% so far this year.