Xali Gold Advises that Starcore has joined the Team to Develop the El Oro Tailings Project in Mexico

VANCOUVER, British Columbia, May 16, 2024 (GLOBE NEWSWIRE) -- Xali Gold Corp. (TSXV:XGC) ("Xali Gold” or “the Company”) is pleased to announce that Kappes, Cassiday & Associates (“KCA”) has advised us they have teamed up with Starcore International Mines Ltd. (“Starcore”) to put into production our environmental rehabilitation project to clean up mine tailings from our Mexican Mine Tailings Reprocessing Project (“Tailings Reprocessing”) at El Oro in Mexico (the “El Oro Tailings Project”). Starcore and KCA have entered into a joint venture, with KCA contributing its expertise and services for the project aimed at rehabilitating the environment, while Starcore assumes the role of Operator and Financier for the joint venture.

“We are very pleased with the strategy that KCA has brought to our Tailings Reprocessing project,” says Joanne Freeze, President and CEO of Xali Gold. “We received the Change of Soil Usage permit almost a year ago, which allows the Tailings to be moved out of the historical deposition site from within the town of El Oro. KCA has now teamed up with Starcore to use their already permitted mine plant site for the Reprocessing which is expected to significantly shorten the timeline to production.”

Recent test work by KCA on the El Oro Tailings Project indicates excellent potential for 72% recovery of gold and 80% recovery of silver using a process being introduced to Xali Gold by KCA. This process would allow the gold and silver to be produced in the form of Dore, which enhances the value of the royalty stream agreed to with Xali Gold. Overall recoveries will need further testing to establish a better estimate for overall recoveries of gold and silver, but KCA is very optimistic about the process.

KCA will oversee all metallurgical and engineering studies and designs, for the Tailings Reprocessing Project, and recovery of the precious metal from the Project. Starcore will cover the Capital Costs for plant construction and take on the role of Operator.

As per the Company’s April 15, 2024 News Release, Xali Gold entered into a Letter of Intent to enter into a Purchase Agreement with KCA on the El Oro Tailings Project. Once production begins on the El Oro Tailings Project, KCA will pay Xali Gold a gross royalty equal to 4% of the sales income received from all gold and silver produced, less any royalties due and payable to others (the Municipality of El Oro), but in no case less than a 3% gross royalty.