Xali Gold Commences Work on Pico Machay Gold Project in Peru
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Xali Gold Commences Work on Pico Machay Gold Project in Peru
Vancouver, British Columbia, January 8 th, 2025. Xali Gold Corp. (TSXV:XGC) ( “Xali Gold” or the
“Company”) is pleased to announce that work has commenced on the recently acquired Pico
Machay Gold Project (“Pico Machay” or the “Project”). Xali Gold has commenced field work with the
initiation of community engagement in anticipation of starting technical field work and
environmental studies for drilling permits this month.
“With the acquisition of Pico Machay successfully closed on December 24th, 2025, our team hit the
ground running during the holiday period,” said Joanne Freeze , President and CEO of Xali Gold .
“Community engagement commenced with introductory meetings and the sharing of holiday cheer
in the community between December 27th and 30th. In addition, we are engaging with permitting
consultants in order to get surface drilling permit applications in as soon as possible.”
Xali Gold has a fourfold strategy to take Pico Machay into production as soon as possible, while also
exploring for additional resources which includes:
1. Conduct detailed rock chip sampling, bulk sampling and geological mapping, both on
surface and within existing underground workings. This work will assist in achieving a better
understanding of geological controls to higher grades, as well as compare assay results with
those from historical drilling, which was all by reverse circulation (“RC”). RC produces small
chips of rock, which are well known to allow fine gold (present at Pico Machay) to wash away.
2. Concurrently complete an environmental technical report to support a surface drilling
permit under a Ficha Tecnica Ambiental (“FTA”) permit estimated to take 2 to 3 months to
acquire.
3. Launch a new Preliminary Economic Assessment ( “PEA”) and detailed Environmental
studies for additional surface drilling and development for operations.
4. Simultaneously negotiate a 20-year Community Agreement encompassing all activities from
surface exploration drilling under the FTA through to full production. Silver Mountain recently
signed a 20-year agreement with the same community to reactivate and operate their
Reliquias mine, approximately 12 km from Pico Machay.
Details of the acquisition can be found in the Company’s October 24th, 2025 and December 24th,
2025 news releases.
About Pico Machay
Pico Machay lies within the northern extent of the Southern Peru Epithermal Gold -Silver Belt and in
the eastern part of Western Cordillera Andes within a well -established mining area/district (click
here for location map ). Xali Gold looks forward to advancing discussions with the Santa Ana
community and advancing Pico Machay under a mutually beneficial framework.
NEWS RELEASE
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Pico Machay was discovered in 1997 and explored by several juniors including Aquiline Resources
(“Aquiline”) through 2009. Aquiline completed various engineering studies including resource
estimations and metallurgical testwork. These studies targeted an open pit heap -leach operation,
which was expected to be low-cost and with a low strip ratio. Given that Aquiline’s engineering work,
prior to that company’s acquisition by Pan American Silver Corp., was based on a long -term gold
price of $700/oz and several exploration targets remain untested, Xali Gold considers the upside
potential to be very strong.
Pico Machay has a Historical Measured and Indicated Resource of 264,600 ounces (“oz”) of gold
(10.6 million (“M”) tonnes grading 0.78 grams per tonne (“gpt”) gold) and an additional Historic al
Inferred Resource of 446,000 oz of gold (23.9 M tonnes grading 0.58 gpt gold). A total of 154 reverse
circulation holes drilled prior to 2009 , were relied upon to delineate the Historic al Resource. All of
these holes were drilled in a central zone while nine additional high -potential exploration targets
remain untested.
Technical Information
Information regarding the historical resource at Pico Machay is outlined in the technical report titled:
“Amended Technical Report on the Pico Machay Gold Deposit in Huancavelica Province, Peru ”
prepared by David G. Thomas, P.Geo. for Xali Gold dated December 16 th, 2025 and filed on
www.sedarplus.ca. All resource estimates have used the same categories in accordance with CIM
Standards on Mineral Resources and Reserves.
All resource estimates for Pico Machay are considered historical in nature and are based on prior
data and reports prepared by previous property owners. A qualified person has not done sufficient
work yet to classify the historical estimates as current res ources in accordance with current CIM
categories and the Company is not treating the historical estimates as current resources. Significant
data compilation, redrilling, resampling and data verification may be required by a qualified person
before the historical estimates on the project can be classified as a current resource. There can be
no assurance that any of the historical mineral resources, in whole or in part, will ever become
economically viable. In addition, mineral resources are not mineral rese rves and do not have
demonstrated economic viability. Even if classified as a current resource, there is no certainty as to
whether further exploration will result in any inferred mineral resources being upgraded to an
indicated or measured resource category.
About Xali Gold
Xali Gold is a gold and silver exploration company focused on advancing opportunities in the
Americas. The Company is focused on the exploration and development of Pico Machay , an
advanced exploration stage gold project in Peru with a near -term production goal. Xali Gold
maintains exploration potential as well as two royalty agreements with third parties who have the
rights to produce gold and silver from specific areas of the El Oro gold -silver Project in Mexico, a
historic di strict-scale precious metal system with a long history of significant gold and silver
production.
Xali Gold is dedicated to being a responsible Community partner.
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Joanne C. Freeze, P.Geo. is a Qualified Person as defined by National Instrument 43 -101 and has
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.
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 of payment of the five deferred
payments and the Contingent Payment; the timing to conduct updated exploration work on the Project, including optimizing
prior engineering studies and timing to prepare a current mineral resource estimate for the Company (that is not a historical
resource under NI 43-101); the Company’s plans to work with REINFO owners to sample previously drilled zones; expected
engagement with the Santa Ana community; timing to bring the Project into production, if at all; impacts of artisanal miners
on the Project and environmental liabilities, if any; impacts and results of community engagement with indigenous
populations located near the Project . 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. The Company cautions
investors that any forward -looking statements by the Company are not guarantees of future r esults 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 mining and mineral processing; fluctuations in metal prices and assumptions including costs; title matters;
government regulation; obtaining and renewing necessary consents, authorizations, licenses and permi ts; 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.