Xali Gold Completes Due Diligence Visit, Confirms Data Integrity and Exploration Upside at Pico Machay Gold Project in Peru
Xali Gold Completes Due Diligence Visit, Confirms Data Integrity and Exploration Upside
at Pico Machay Gold Project in Peru
Vancouver, British Columbia – November 1 9th, 2025 - Xali Gold Corp. (TSXV:XGC) ("Xali Gold” or the
“Company”) is pleased to report that due diligence site visit s for the Pico Machay Gold Project (“Pico
Machay” or the “Project”) in Central Peru have been completed and confirm the high quality and integrity
of the historical work. The Project is under acquisition through a Share Purchase Agreement (“SPA”) with
Pan American Silver Corp. (TSX:PAAS) (NYSE:PAAS) (“Pan American”) and its subsidiary, Aquiline
Resources Inc. (“Aquiline”) as per the October 24th, 2025 news release.
Xali Gold has now completed three site visits between June and November of this year , providing strong
confidence in the integrity of the historical work conducted on the property by Aquiline Resources , their
predecessors and also by Pan American. Participants of the site visits have included Xali Gold technical
team and management, Xali Gold Qualified Person (“QP “) David Thomas of DKT Geosolutions (“DKT”), as
well as representatives for local investors. David Thomas has verified the historic geological model,
confirmed the accuracy of drill collar locations, and validated the reliability of the assays from historic
drilling through independent check sampling. These results speak to the integrity of the dataset and
support the preparation of a n updated National Instrument 43-101 report as required by the TSXV for this
acquisition. This report will also serve as the foundation for converting the historic mineral resource
estimate to a current estimate.
“The Project has delivered a major and highly encouraging surprise: the alteration footprint is substantially
more extensive than we had understood, spanning about 4.1km by 1.3km (533 hectares) ,” stated Joanne
Freeze, President and CEO of Xali Gold. “By comparison, the surficial expression of the current resource
occupies approximately 800m by 350m (28 hectares) - approximately 5% of the altered-mineralized
broader system – which highlights the substantial exploration upside that remains open for discovery. Not
only does Pico Machay offer immediate value potential, given that the original resource was based on a
long-term gold price of only US$700 per ounce, but the extensive undrilled areas within this large alteration
system provide exceptional opportunity for both resource expansion and new discoveries.”
Video highlights from the latest Pico Machay site visit are now available.
Xali Gold engaged David Thomas of DKT to carry out a comprehensive due diligence site visit in October
2025. During the visit, DKT verified key elements of the geological model through examination of surface
outcrops, collected GPS coordinates for drill collar locations, gathered 26 samples (including 9 surface
samples and 17 pulp and coarse reject samples), and conducted a thorough review of RC chip samples
stored in Lima, Peru.
The new rock chip samples collected at Pico Machay reinforce the strength of the system, confirming both
higher-grade and lower -grade gold and silver values, as summarized in Table 1 and Figure 1 below. Drill
collar positions were validated as reasonably accurate, and check assays from pulp and coarse reject
material confirm strong assay reliability. Overall, the dataset shows excellent integrity —sufficiently
accurate and robust to support an updated National Instrument 43-101 mineral resource estimate, which
is now well underway and expected to be completed in the coming months.
Pico Machay has a historic Measured and Indicated Resource of 264,600 ounces (“oz”) of gold (10.6 million
NEWS RELEASE
(“M”) tonnes grading 0.78 grams per tonne (“gpt”) gold) and an additional Historic Inferred Resource of
446,000 oz of gold (23.9 M tonnes grading 0.58 gpt gold). Additional details about Pico Machay, including
a video with highlights from the site visit, can be found on the Xali Gold website at: Xali Gold Corp. |
Overview
Table 1: Assay Results from Rock Chip Samples Figure 1: Rock Chip Sample Locations
Sample Number
Gold
(g/t) Silver (g/t)
74122 0.21 0.5
74123 3.98 25.8
74124 2.23 11.2
74125 2.86 7.3
74126 0.14 1.4
74127 0.16 <0.5
74128 2.60 1.3
74129 2.07 1.0
74130 1.80 1.0
All samples rock chip samples were collected in the field using a hammer. Sample locations were obtained
using a handheld GPS with samples placed in pre -labelled sample bags. Samples were securely
transported by field staff to ALS Chemex’s laboratory in Lima, Peru for standard sample preparation (Prep
32) which includes drying at 105°C, crush to 70% passing 2 mm, riffle split 1000g and pulverize 85% passing
75 microns. 30g pulps were then analyzed for gold and silver by fire assay with an AAS finish (code A u-
AA23). Silver analysis was performed using 4-acid digest with an ICP-AAS finish (Code Ag-ICP61). A Quality
Assurance/Quality Control protocol was incorporated into the program and included the insertion of
certified reference material at and blanks at a rate of approximately 5% and 5%, respectively. ALS Chemex
is independent of the Company.
Management cautions that surface rock chip samples and associated assays, as discussed herein, are
selective by nature and represent a point location, and therefore may not necessarily be fully
representative of the mineralized horizon sampled.
Technical Information
Information regarding the historic mineral resource at Pico Machay w as obtained from the report titled:
“Independent Technical Report and Resource Estimate Pico Machay Gold Deposit” prepared by Caracle
Creek International Consulting Inc. for Aquiline dated November 25th, 2009. The mineral resource numbers
are included in the Pan American News Release dated September 11, 2024 and found on both the Pan
American website and on www.sedarplus.ca. All mineral 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 historic in nature and are based on prior data and
reports prepared by previous property owners. The Company views the estimate as a meaningful reference
point for planning current exploration activities and assessing the Project’s potential, but a qualified person
has not done sufficient work yet to classify the historic estimates as current resources in accordance with
current CIM categories and the Company is not treating the historic 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 historic mineral resources, in whole or in part, will ever become economically
viable. In addition, mineral resources are not mineral reserves 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.
Xali Gold is dedicated to being a responsible community partner.
Both David G. Thomas, P.Geo. and Joanne C. Freeze, P.Geo. Qualified Persons as defined by National
Instrument 43-101 have 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 to close the SPA and meet closing
conditions; potential upside and production from and viability of the Pico Machay Project; the potential tonnage, grades and
content of deposits; the steps and timing to convert historical mineral resource estim ates to current estimates for the Company.
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 results or performance, and are subject to risks, uncertainties, assump tions 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 calcula tion of
mineral resources and additional work required to convert historical resources to current mineral resources; th e nature, quality
and quantity of any mineral deposits that may be located on the project; operational risks associated with mining and mine ral
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 init ial
assessment are not identical to the definition and content requirements for a PEA under NI 43-101.