Xali Gold Provides Update on Activities in Mexico and Peru

VANCOUVER, British Columbia, May 02, 2024 (GLOBE NEWSWIRE) -- Xali Gold Corp. (TSXV:XGC) (“Xali Gold” or the “Company”) is pleased to provide an update on the Company’s activities in Mexico and Peru. In Mexico, the focus is partnerships with third parties to deliver near-term cash flows and in Peru the focus is returning to exploration. Currently, the Company has excellent progress on four fronts.

“While we continue actively progressing near-term cash flow opportunities from our Mexican assets, we are also very excited to advance our growth strategy by actively seeking out gold and silver projects with promising exploration potential in Peru,” says Joanne Freeze, President and CEO of Xali Gold.

El Oro Tailings Project Mexico

Recent test work on the Mexican Mine Tailings Reprocessing Project at El Oro (the “El Oro Tailings Project”) in Mexico, indicates excellent potential for 75% recovery of the gold and silver using a new process being introduced by Kappes, Cassiday and Associates (“KCA”).

KCA’s test work was recently conducted on two near-surface bulk samples collected by backhoe and sent to the KCA laboratory in Reno, Nevada. KCA reported an average of 72% recovery on gold and 80% recovery of silver from the tailings using a proprietary process. 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 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’s plans are to remove the tailings from their present location and process them at a distant site which would not require any further permitting and hence, the Company is optimistic about a shorter timeline to production than previously thought possible.

As per the Company’s April 15, 2024 News Release, Xali Gold entered into a Letter of Intent to enter 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.