Permits Applied for Mexico Mines Tailings Project
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Permits Applied for Mexico Mines Tailings Project
Vancouver, British Columbia, April 13th, 2021. Xali Gold Corp. (TSXV:XGC) ("Xali Gold”
and/or the “Company”) is pleased to advise that permit applications have been submitted
for the Mexico Mines Tailings Project in El Oro, Mexico . The permits are to allow both
the transportation and re -processing of the Mexico Mine tailings at a new plant site
located just 5 kilometers from the current location . Sun River Gold “SRG” and their
Mexican subsidiary, Remediacion Rio Sol “RRS”, will be conducting all of the work on the
tailings as part of an option agreement to acquire the Tailings Project and Xali Gold's
subsidiary, Minera CCM El Oro Jales.
A land package comprising 25 hectares has been purchased for the new plant site and the
re-processing plant is expected to be operational within 12 months from receiving
permits. Extensive laboratory testing has been performed, which was critical in
completing design work for the plant and preparing detailed planning documents.
“We are very excited with the work th at SRG has completed to advance the Tailings
Project,” says Joanne Freeze, President and CEO of Xali Gold. “ There have been some
delays due to g overnment closures during the COVID pandemic, but the project is now
moving forward and we are very excited to the re-processing getting into operation.”
In addition to laboratory test work, SRG has also completed the following work in
preparation for the operation:
• Design of the plant site
• Mine plan of tailings indicating extraction levels over the years
• Developed a contour map demonstrating resulting topography of municipal
land once tailings are removed
• Engaged power contractor to upgrade and extend power lines to site
• Secured access across private land for roads and power lines
• Secured access to water from local sources
Xali Gold's subsidiary, CCM El Oro Jales, has an agreement with the municipality of El
Oro which provides the Company the right to recover all available gold and silver from
the Mexico Mines tailings deposit and pay to the Municipality of El Oro an 8% Net Profits
Interest ("NPI"). Xali Gold will also retain the first US$1.5M from the 8%NPI payable to
the Municipality.
SRG has the option to acquire 100% of the Tailings Project by making staged payments
totalling US$500,000 (paid), bringing the tailings into commercial production within 36
months of the effective date of the option agreement, and grant ing to the Company a 5%
NEWS RELEASE
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NPI, Life of Mine royalty as well as the Municipalities 8% NPI on production from the
properties. The 36 month term has been extended for 6 months providing that SRG
demonstrates sufficient progress during each 3 month period.
The Mexico Mine Tailings contain an Inferred Resource* of 1,267,400 Tonnes grading
2.94 Au g/t, 75.12 Ag g/t containing 119,900 ounces of gold and 3,061,200 ounces of
silver.
*Note: Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability. All figures have been rounded to reflect the accuracy of the estimate.
For more information see “National Instrument 43-101 Technical Report on the Inferred
Mineral Resource Estimate of the Mexico Mine Tailings” prepared by Nadia Caira, P.Geo.
and Allan Reeves, P.Geo., dated August 25, 2014 with an effective date of July 8, 2014 (the
“Technical Report”) available at www.sedar.com and
http://www.candentegold.com/i/pdf/reports/CDG_NI43-101-Inferred-Mineral-
Resource-Mexico%20Mine-Tail.pdf.
About Xali Gold
Xali Gold has launched a comprehensive growth strategy to build a cash flowing business
platform and gain access to properties with near surface exploration potential while
maintaining El Oro as its flagship asset and an integral part of the overall growth strategy.
The acquisition of the SDA Plant, the El Dorado historic mines and the Cocula Project
signify important initial steps.
The Company is currently evaluating other properties that are complementary to the SDA
plant, El Dorado and the Cocula Project.
Joanne C. Freeze, P.Geo., President, CEO and Director and Matthew Melnyk, CPG.,
Director Operations and Director are Qualified Persons as defined by National
Instrument 43-101 for the El Oro project. Ms. Freeze and Mr. Melnyk have reviewed and
approved the contents of this release.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts
responsibility for the adequacy or accuracy of this release.
Xali Gold is dedicated to being a responsible Community partner.
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Forward-looking Information
This news release may contain forward -looking information (as such term is defined
under Canadian securities laws) including but not limited to the mineral resource
estimate for the Mexic o Mine Tailings and information regarding references to
historical resource estimates, the potential for discovery on the El Dorado Property and
in the El Oro district and other statements that are not historical facts. While such
forward-looking information is expressed by Xali Gold in good faith and believed by
Xali Gold to have a reasonable basis, they address future events and conditions and are
therefore subject to inherent risks and uncertainties including those set out in Xali Gold’s
MD&A. Factors that cause the actual results to differ materially from those in forward-
looking information include, without limitation, gold prices, results of exploration and
development activities, regulatory changes, defects in title, availability of materials and
equipment, timeliness of government approvals, potential environmental issues,
availability of capital and financing and general economic, market or business
conditions. Xali Gold expressly disclaims any intention or obligation to update or
revise any forward-looking information, whether as a result of new information, future
events or otherwise, except in accordance with applicable securities laws.
On behalf of the Board of Xali Gold Corp.
“Joanne Freeze” P.Geo.
President, CEO and Director
For further information please contact:
Joanne Freeze
President & CEO
Tel: + 1 (604) 689-1957
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