Xali Gold Turns Exploration Attention from Mexico to South America
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Xali Gold Turns Exploration Attention from
Mexico to South America
Vancouver, British Columbia, August 3, 2023 - Xali Gold Corp. (TSXV:XGC) ("Xali Gold” or the
“Company”) is pleased to advise that it has decided to review exploration opportunities in South
America including Peru and provides an update on Mexican assets.
“Our assets in Mexico are very attractive such that we expect to be able to generate cash flow in the
near future, which would allow us to continue working on other opportunities without incurring
equity dilution,” says Joanne Freeze, President and CEO of Xali Gold. “With the exception of El
Oro, we are no longer incurring any costs to maintain exploration assets in Mexico. This includes
the El Dorado property, which while still of interest, has taken too long to receive drill permits and
the Company can no longer justify the holding costs.”
Peru Properties
With renewed interest in gold and silver exploration in South America, the Company is reviewing
options to resume exploration in Peru and other countries. The Company still maintains some
properties in Peru including the Lucero Gold Property acquired several years ago.
Lucero is a high sulphidation disseminated gold prospect occurring within a prolific mineral belt and
located between the Tantahuatay and La Zanja mines in Cajamarca, Northern Peru. Gold
mineralization has been found to date in three locations in an area extending over 1.3 by 1.0
kilometres (“km”) on the Lucero property. Gold mineralization occurs in silicified volcanic rocks
and hydrothermal breccias with anomalous gold values ranging from 0.155 to 1.575 grams per tonne
(“g/t”) over widths of 5 to 20 meters (“m”). The highest grade gold zone found to date (1.575 g/t
over 10 m) occurs in a hydrothermal breccia body with vuggy silica fragments which is the typical
host for high sulphidation disseminated gold deposits in Peru and elsewhere. The silicified and
mineralized zones are hosted by volcanic rocks belonging to the Calipuy Formation which also hosts
the Yanacocha (50 million ounces) and Pierina (8 million ounces) gold deposits amongst others.
Lucero is located 34 km NW of the Yanacocha Mine, 18 km west of the Tantahuatay Mine and
approximately 12 km NE of the La Zanja Mine.
Mexico Properties and Assets
The El Oro Project remains a highly valued asset of the Company with past production of 8 million
ounces gold equivalent (gold-silver 1:10) and excellent discovery potential, however exploration
focus for El Oro has been temporarily put on hold. The Company is now focused on building local
partnerships for our two assets in Mexico, which have strong potential to provide near-term cash
flow.
NEWS RELEASE
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Sun River Gold (“SRG”), who holds an option on the Mexican Mine Tailings Project at El Oro, has
been advancing permitting and providing some cash flow through advances on the Net Profit Interest
(“NPI”) due once in production. SRG has recently advised the Company that they have received
feedback from the Mexican government on the final permit for the El Oro Tailings Project and have
now re-submitted the application with the requested updates.
The El Oro Tailings Project 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.
Negotiations are also underway with Mexican groups regarding both upgrades and financing
commitments to make the San Dieguito de Arriba (“SDA”) Plant in Western Mexico fully
operational. Xali Gold terminated the previously announced agreement (see January 18, 2023 News
Release) with Minera Cinco Reales S.A. de C.V. (“MCR”) earlier this month due to MCR’s lack of
progress. The Company has been advised that MCR’s funding is imminent, but Xali Gold believes
there are better options for Xali Gold to realize profits with the SDA Plant. As proven by Vane
Minerals, the original owner of the plant, there are many small and rich mines in the surrounding area
and there is a scarcity of plants with economic proximity to the mines.
*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
About Xali Gold
Xali Gold has gold and silver projects in Peru and Mexico. 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 forward-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 conditions and are therefore subject to inherent
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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 economic,
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.
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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