Xali Gold Initiates Engineering and Permitting for both Operations and Exploration at Pico Machay Gold Project in Peru
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Xali Gold Initiates Engineering and Permitting for both Operations and Exploration
at Pico Machay Gold Project in Peru
Vancouver, British Columbia, March 30th, 2026. Xali Gold Corp. (TSXV:XGC) ( “Xali Gold” or the
“Company”) is pleased to announce the commencement of engineering studies to update the
Feasibility Study for its Pico Machay Gold Project (“Pico Machay” or the “Project”) originally completed
in 2009. Adam Johnston, FAusIMM, CP(Met), of Transmin Metallurgical Consultants has been engaged
to help assemble the engineering team and oversee mineral processing, metallurgical testing and
recovery optimization, which are key components for the updated Feasibility Study.
Mr. Johnston brings extensive experience in mineral processing, metallurgical testing and recovery
methods, especially in heap leach operations located in the Peruvian Andes. He has acted as a
Qualified Person (“QP”) and Technical Expert on many projects such as: Minera IRL’s Corhuarmi Mine,
Anacortes Mining Corporation’s Tres Cruces Project, C3 Metals Inc’s Jasperoide Project, and Tinka
Resources’ Ayawilca Deposit.
“Work will begin with an updated Mineral Resource Estimate followed by revised capital and
operational cost estimates and economic analysis based on long -term gold and silver prices to be
presented in a Preliminary Economic Assessment (“PEA”),” stated Joanne Freeze, President and CEO
of Xali Gold. “Initiating these studies at this stage , allows the Company to commence the EIA -d
(“Detailed Environmental Impact Assessment ”), which is the longest lead -time component for
permitting any mining operation in Peru , typically requiring 12 to 24 months . Concurrently, additional
metallurgical testwork will be undertaken to support the Feasibility Study. We will further refine
exploration targets for drilling once permits are secured. With Adam’s assistance, we are assembling
an Experienced Peruvian Engineering and Operations team to support the efficient advancement and
de-risking of the Project to bring Pico Machay into production in a timely and responsible manner.”
Mr. Johnston is Chief Metallurgist at Transmin Metallurgical Consultants with more than 30 years of
international experience in extractive metallurgy across six continents. His expertise includes process
design, metallurgical testing, engineering, commissi oning, operations and plant optimization, with a
strong focus on mineral processing, hydrometallurgy and geometallurgy for base and precious metals.
He has led scoping, feasibility, detailed engineering and optimization studies for operations producing
various metals and has overseen metallurgical development on numerous major gold and copper
projects in Peru. Mr. Johnston’s experience also includes work on sev eral high-sulphidation projects
and operations in Peru, including: Tres Cruces, Corihuarmi, Pucamarca, Sipan, Colpayoc, Tantahuatay,
AntaKori, Cerro de Pasco, Quicay and La Rescatada.
The Company is also pleased to announce that Phase I of the systematic relogging of historical reverse-
circulation (“RC”) drill cuttings , documenting lithologies, alteration and mineralization, as well as a
detailed review of all assays, descriptive data and interpretations , key work required to update the
resource and improve the understanding of controls on mineralization , is complete. The work
NEWS RELEASE
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commenced in January 2026 and will allow the Company to refine the geological model, better define
controls on mineralization, and support mine planning and economic studies as the Project advances
through the next stages of technical evaluation.
About Pico Machay
Located within the Southern Peru Epithermal Gold -Silver Belt, Pico Machay sits in a historically
productive mining district in the Western Cordillera Andes (click here for location map ). The Project
benefits from existing infrastructure and a mining -friendly community eager to partner on sustainable
development.
Xali Gold remains confident in the significant upside potential at Pico Machay, which hosts 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 Historical 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 Historical Resource. All of these holes were drilled in a central zone while
nine additional high-potential exploration targets remain untested.
Various historical engineering studies at Pico Machay targeted an open pit heap-leach operation, which
was expected to be low-cost and with a low strip ratio. Given that those studies were 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.
Details of the acquisition can be found in the Company’s October 24th, 2025 and December 24th, 2025
news releases.
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 as well as the report titled: “Independent Technical Report and Resource Estimate
Pico Machay Gold Deposit” prepared by Caracle Creek International Consulting Inc. for Aquiline
Resources Inc (purchased by Pan American Silver) on November 25 th, 2009. . 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 (“QP”) has not done sufficient
work yet to classify the historical estimates as current resources in accordance with current CIM
categories and the Company is not treating the historical estimates as current resources. The QP
considers the historical estimates to be relevant as they were prepared using industry -standard
estimation methodo logies, reporting categories, and technical practices commonly relied upon by
mining companies and other issuers for comparable mineral projects. 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 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.
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All scientific and technical information in this news release has been prepared by, or approved by David
G. Thomas, P.Geo. and Joanne C. Freeze, P.Geo., QPs as defined by National Instrument 43-101 for the
Pico Machay Project. Ms. Freeze is the President and CEO of Xali Gold and Mr. Thomas is Independent.
Resources were estimated using historical drilling (up to 2004) and current drilling (drilled between
2004 and 2008). The resource estimate includes holes up to Hole ABS-246, drilled in 2008. Micromine
software (Version 11.0.4) was used to facilitate the resource estimating process and the estimate was
prepared in accordance with CIM Standards on Mineral Resources and Reserves.
Mineralized zones were outlined to enforce geological control during block modelling. The geological
continuity of the broader mineralized zones, especially for the main zone, was quite good and could be
readily followed from hole -to-hole and section -to-section. An average specific gravity (rock density)
value, based on eleven samples, of 2.31 was used.
A block model was created, constrained by the zone wireframes. Blocks in the Inferred category were
defined based on search ellipse parameters with a range of 40m. Blocks in the Indicated and Measured
categories were identified manually, based on drill in tercepts spacing values of 27 and 20m,
respectively. Ordinary block kriging was used to estimate block grades.
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 district-scale precious metal system
with a long history of significant gold and silver production.
Xali Gold is committed to working as a responsible partner with local communities.
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
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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 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 timing to complete modelling, mapping and reconnaissance
and sampling on the Project; timing to bring the Project into production, if at all . 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 w ill 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, 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 permits; environmental liability and
insurance; reliance on key personnel; local community opposition; currency fluctuations; labour disputes; competition;
variations in market conditi ons, 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.