Xali Gold Advises that Starcore has joined the Team to Develop the El Oro Tailings Project in Mexico
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Xali Gold Advises that Starcore has joined the Team to Develop the El Oro
Tailings Project in Mexico
Vancouver, British Columbia, May 16, 2024 - Xali Gold Corp. (TSXV:XGC) (" Xali Gold” or “the
Company”) is pleased to announce that Kappes, Cassiday & Associates (“ KCA”) has advise d us
they have teamed up with Starcore International Mines Ltd. (“Starcore”) to put into production our
environmental rehabilitation project to clean up m ine tailings from our Mexican Mine Tailings
Reprocessing Project (“Tailings Reprocessing”) at El Oro in Mexico (the “El Oro Tailings Project”).
Starcore and KCA have entered into a joint venture, with KCA contributing its expertise and services
for the project aimed at rehabilitating the environment, while Starcore assumes the role of Operator
and Financier for the joint venture.
“We are very pleased with the strategy that KCA has brought to our Tailings Reprocessing project,”
says Joanne Freeze, President and CEO of Xali Gold. “We received the Change of Soil Usage permit
almost a year ago, which allows the Tailings to be moved out of the historical deposition site from
within the town of El Oro. KCA has now teamed up with Starcore to use their already permitted
mine plant site for the Reprocessing which is expected to significantly shorten the timeline to
production.”
Recent test work by KCA on the El Oro Tailings Project indicates excellent potential for 72%
recovery of gold and 80% recovery of silver using a process being introduced to Xali Gold by KCA.
This process would allow the gold and silver to be produced in the form of Dore, which enhances the
value of the royalty stream agreed to with Xali Gold. Overall recoveries will need further testing to
establish a better estimate for overall recoveries of gold and silver, but KCA is very optimistic about
the process.
KCA will oversee all metallurgical and engineering studies and designs, for the Tailings Reprocessing
Project, and recovery of the precious metal from the Project. Starcore will cover the Capital Costs
for plant construction and take on the role of Operator.
As per the Company’s April 15, 2024 News Release, Xali Gold entered into a Letter of Intent to enter
into a Purchase Agreement with KCA on the El Oro Tailings Project. Once production begins on the
El Oro Tailings Project, KCA will pay Xali Gold a gross royalty equal to 4% of the sales income
received from all gold and silver produced, less any royalties due and payable to others (the
Municipality of El Oro), but in no case less than a 3% gross royalty.
About Starcore
Starcore is engaged in precious metals production with focus and experience in Mexico. While this
base of producing assets has been complemented by exploration and development projects throughout
North America, Starcore has expanded its reach internationally with the recently acquired project in
Côte d’Ivoire. The Company is a leader in Cor porate Social Responsibility and advocates value
driven decisions that will increase long term shareholder value. You can find more information on
the investor friendly website here: www.starcore.com
NEWS RELEASE
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Shares for Debt
The Company also advises that as per the Xali Gold News Release dated May 2, it has issued shares
of the Company to Lotz CPA Inc, in order to cover the debt due for CFO consulting fees over 5 years.
The Common Shares issued pursuant to the shares for debt settlement will be subject to a four month
hold period.
About Xali Gold
Xali Gold has gold and silver projects in Peru and Mexico. The Company’s flagship project El Oro
is a district scale gold project encompassing a well -known prolific high-grade gold dominant gold -
silver epithermal vein system in Mexico. The project covers 20 veins with past production and more
than 57 veins in total, from which approximately 6.4 million ounces of gold and 74 million ounces
of silver were reported to have been produced from just two of these veins (Ref. Mexico Geological
Service Bulletin Nr. 37, Mining of the El Oro and Tlapujahua Districts. 1920, T. Flores).
Modern understanding of epithermal vein systems indicates that several of the El Oro district’s veins
hold excellent discovery potential, particularly below and adjacent to the historic workings of the San
Rafael Vein, which was mined to an average depth of only 200m.
Xali Gold is dedicated to being a responsible Community partner.
Joanne C. Freeze, P.Geo., President and CEO is the Qualified Person as defined by National
Instrument 43 -101 for the projects discussed above. Ms. Freeze ha s 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.
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 historical production records. While such forward-looking information is expressed by Xali
Gold in good faith and believed by Xali Gold to have a reasonable basis, they may 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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