Xali Gold Provides Update on Cash Flow Assets in Mexico
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Xali Gold Provides Update on Cash Flow Assets in Mexico
Vancouver, British Columbia, July 13, 2023 - Xali Gold Corp. (TSXV:XGC) ("Xali Gold” or the
“Company”) is pleased to provide an update on both the El Oro Tailings Project and the San Dieguito
de Arriba (“SDA”) Plant in Western Mexico.
El Oro Tailings Project (the “Project”)
As per the Xali Gold News Release dated May 4, 2023, Sun River Gold Corp (“Sun River”) received
notice of approval for a change in soil use permit w hich is the main permit required for the El Oro
Tailings Project in Mexico. To complete the permitting process, Sun River then had a short time
period to pay 1,426,364 Pesos (approximately US$84,500) to the Fondo Forestal Mexicano to receive
the permit. The complete permit was received this week and allows the Tailings to be removed from
the historical deposition site , which is within the town of El Oro , to the industrial processing site
outside of the town. Having paid all fees pertaining to this permit , Sun River can now commence
work on the Project.
Additionally, Sun River continues to make advanced Net Profit Interest (“NPI”) payments, as part of
the option agreement to acquire 100% of the Project from Minera CCM E l Oro Jales (Xali Gold’s
subsidiary). For an outline of payments and extensions granted, p lease refer to the January 4, 2023
News Release.
“We are very pleased that Sun River continues to advance our Tailings Project and that the team has
such extensive permitting and mining experience in Mexico,” says Joanne Freeze, President and CEO
of Xali Gold. “ With Sun River making advanced NPI payments, we have been able to continue
working on other opportunities without incurring equity dilution.”
Sun River is a private Arizona based corporation managed b y an experienced team of mining
professionals with a combined 80 years of mining experience in Mexico, including specific
experience in the reprocessing of historical gold and silver tailings.
The Tailings Project at El Oro contains an Inferred Resource* of 1,267,400 Tonnes grading 2.94 gold
grams per tonne (“g/t”), 75.12 silver g/t containing 119,900 ounces of gold and 3,061,200 ounces of
silver.
*Note: Mineral Resources are not Mineral Reserves and do not have dem onstrated 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
NEWS RELEASE
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SDA Plant
The Company has decided to terminate the Binding Letter of Intent (the “Agreement”) on the SDA
Plant with Minera Cinco Reales S.A. de C.V. (“MCR”) due to their failure to meet timelines and the
number of other groups showing interest in collaboration on operating the plant. The Company is
now in discussions with several other parties regarding terms to get the SDA Plant fully operational.
The first step was to upgrade the power supply at the SDA Plant, which has been completed.
Fabrication of initial replacement parts for the plant is still in progress, as is the Environmental Impact
Permit.
“While we are disappointed that MCR was unable to meet its commitments, we are excited to be in
talks with several other local mining companies to continue bringing the SDA Plant into operation,”
says Joanne Freeze, President and CEO of Xali Gold. “The Profit Sharing Agreement s on the SDA
plant, as well as with Sun River Gold on the El Oro Tailings project , will allow us to put our assets
to work and provide cash flow while we continue to evaluate other opportunities.”
About Xali Gold
Xali Gold has a growth strategy to acquire gold and silver projects with near surface ex ploration
potential, near-term production potential and previous mining histories in Mexico. Xali Gold plans
to advance our growing bank of gold and silver assets internally and/or with industry partners.
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 200 metres.
Xali Gold is dedicated to being a responsible Community partner.
Joanne C. Freeze, P.Geo., President, CEO and Matthew Melnyk, CPG., Director Operations, are Qualified Persons as defined by
National Instrument 43-101 for the projects discussed above. Ms. Freeze and Mr. Melnyk have 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 forwa rd-looking information (as such term is defined under Canadian securities laws)
including but not limited to the mineral resource estimate for the Mexico Mine Tailings and information regarding
references to historical resource estimates, the potential for discovery on the El Oro Property and other statements that
are not historical facts. While such forward-looking information is expressed by Xali Gold in good faith and believed by
Xali Gold to have a reasonable basis, they address future events and condi tions 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 economi c,
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.
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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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