Xali Gold Agrees to Transfer the El Oro Tailings Project in Mexico to Kappes, Cassiday
Xali Gold Agrees to Transfer the El Oro Tailings Project in Mexico to Kappes, Cassiday
Vancouver, British Columbia – November 1 3th, 2025 - Xali Gold Corp. (TSXV:XGC) ("Xali Gold” or the
“Company”) is pleased to announce that Xali Gold and Kappes, Cassiday and Associates (“KCA”) have
agreed to finalize a Definitive Agreement whereby Xali Gold will transfer all of their rights related to the
Mexican Mine Tailings in El Oro, Mexico (the “El Oro Tailings Project”), to KCA. The terms of the Definitive
Agreement will be consistent with the terms in the Binding Letter of Intent (“LOI”) announced on April 15,
2024.
“KCA has made substantial progress on the El Oro Tailings Project with a drill program that successfully
confirmed the tonnage, grade and metallurgical behaviour of the ore,” says Joanne Freeze, President and
CEO of Xali Gold. “Additionally, they have deve loped a comprehensive engineering design package to
support the construction of a processing plant to treat the tailings with recoveries estimated to be 78% for
gold and 86% for silver. We are confident that KCA is the ideal partner to responsibly develop and operate
the tailings reprocessing facility, delivering benefits for all stakeholders involved.”
Xali Gold initially acquired the rights to reprocess the t ailings in El Oro from the Municipality of El Oro in
2013. Since then, the Company has conducted numerous studies, both independently and in
collaboration with partners, to determine the most effective gold recovery process and believes that KCA
has successfully achieved this.
Xali Gold’s agreement with KCA gives them the right to process and sell all gold and silver recovered from
the Tailings in return for a gross royalty equal to 4% of the sales income (“NSR”), less any royalties due
and payable to others , especially the Municipality of El Oro, but not less than 3% gross royalty. KCA
maintains the right to purchase 1% of the royalty from Xali Gold for US$1,000,000 at any time, in which
case the 4% gross royalty owed to the Company will be reduced to 3% (or the 3% royalty, reduced to 2%).
Payments or taxes related to the tailings will be assumed by KCA and will no longer be the responsibility
of Xali Gold.
The LOI signed in April 2024 also provide s for staged payments totalling $150,000 within six months of
signing. Subsequently, and continuing until production commences, a minimum royalty payment of
US$50,000 is to be paid every 6 months. KCA has paid Xali Gold $200,000 to date.
The transfer will include Xali Gold transferring its Mexican subsidiary, Minera CCM Jales S.A. de C.V.
(“CCM Jales”), to KCA as it entered into the various agreements with the Municipality of El Oro and holds
the permits required to move the tailings. KCA will manage all negotiations with local gove rnment and
cover all associated legal costs. KCA will also be responsible for all legal costs related to the Definitive
Agreement.
El Oro Tailings Project Details
The tailings are estimated to contain 1.27 million tonnes at a grade of 2.94 grams per tonne (“gpt”) gold
and 75.12 gpt silver (3.85 gpt gold equivalent) containing 119,900 ounces (“oz”) of gold and 3,061,200 oz
NEWS RELEASE
NEWS RELEASE
of silver as per an Inferred Mineral Resource Estimate National Instrument 43 -101 Resource Study in
2014*.
KCA completed a drilling and metallurgical testing program earlier this year to provide samples for
metallurgical evaluation and testing of the tailings and to increase the level of confidence in the resource
estimate completed by Xali Gold in 2014. Please refer to February 12, 2025 news release for complete
details on the program.
The assay results of the drilling program indicated the gold and silver content of the tailings was very
uniform both laterally and vertically to depth and slightly higher than previously estimated by Xali Gold.
KCA also reported that the drilling and metallurgical results indicate a potential 10 to 15% increase in the
size of the resource as well as a small increase to both the gold and silver grades and recoveries. KCA
estimates that the methods recommended could give recoveries of up to 82% for gold and 86% for silver,
however for economic calculations they will use 78% recovery for gold and 86% recovery for silver. These
are slightly higher than the average overall recovery of 75% previously considered by KCA.
*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 available at www.sedar.com.
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 Project discussed above. Ms. Freeze has reviewed and approved the contents of this
release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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: + 1 604-512-3359
Forward-looking Disclaimer
This press release contains forward -looking information within the meaning of Canadian securities laws (“forward -looking
statements”). Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate,
plans, postulate and similar expressions, or are those, which, by their nature, refer to future events. All statements that are not
statements of historical fact are forward-looking statements.
Forward-looking statements in this press release include, without limitation: the timing and signing of the Definitive Agreement ;
the estimated recoveries of gold and silver; and the tonnage, grades and content of the tailings. These forward-looking statements
are made as of the date of this press release. Although the Company believes the forward-looking statements in this press release
are reasonable, it can give no assurance that the expectations and assumptions in such statements will prove to be correct. T he
Company cautions investors that any forward -looking statements by the Company are not guarantees of future results or
performance, and are subject to risks, uncertainties, assumptions and other factors which could cause events or outcomes to
differ materially from those expressed or implied by such forward-looking statements.
Known risk factors and assumptions include risks associated with exploration and project development; accessing further
funding and related dilution: continuing its projected growth, or being fully able to implement its business strategies; the
calculation of mineral resources and additional work required to convert historical resources to current mineral resources; the
nature, quality and quantity of any mineral deposits that may be located on the project; operational risks associated with mi ning
and mineral processing; fluctuations in metal prices and assumptions including costs; title matters; government regulation;
obtaining and renewing necessary consents, authorizations, licenses and permits; environmental liability and insurance; reliance
on key personnel; local community opposition; currency fluctuations; labour disputes; competition; variations in market
conditions, and the volatility of our common share price and volume; future sales of shares by existing shareholders; and other
risk factors described in Xali Gold’s MD&A and other filings with Canadian securities regulators, which may be viewed at
www.sedarplus.ca. Although we have attempted to identify important factors that could cause actual actions, events or results
to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or
results not to be as anticipated, estimated or intended.
There can be no assurance that forward -looking statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward -
looking statements. 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.
CAUTIONARY NOTE TO U.S. INVESTORS
We advise U.S. investors that this news release uses terms defined in the 2014 edition of the Canadian Institute of Mining,
Metallurgy and Petroleum (CIM) “CIM Definition Standards on Mineral Resources and Mineral Reserves”, as incorporated by
reference in Canadian National Instrument 43 -101 “Standards of Disclosure for Mineral Projects”, for reporting of mineral
resource estimates. These Canadian standards, including NI 43-101, differ from the requirements of the United States Securities
and Exchange Commission (SEC) as set forth in the mining disclosure rules under Regulation S-K 1300. Regulation S-K 1300 uses
the same terminology for mineral resources, but the definitions are not identical to NI 43 -101 and CIM Definition
Standards. Regulation S-K 1300 uses the term “initial assessment” for an evaluation of potential project economics based on
mineral resources. This study type has some similarities to a Preliminary Economic Assessment, but the definition and content
requirements of an initial assessment are not identical to the definition and content requirements for a PEA under NI 43-101.