Xali Gold Provides Update on Activities in Mexico and Peru - Seite 2

SDA Plant Mexico

Grupo Minero WIYA (“WIYA”), who have signed a Modification to the Rent to Purchase Agreement on the San Dieguito de Arriba (“SDA”) Plant in Nayarit, Western Mexico (see News Release dated April 25, 2024), are conducting modifications on the SDA Plant in order to produce a single bulk concentrate and have commenced shipping mineralized material from their mine to the SDA Plant. Approximately 550 tons of mineralized rock has been received at the SDA Plant in preparation for the restart of the mill, once 1500 tons has been delivered.  

El Oro Gold Hard Rock Project

Xali Gold is in discussions with a local experienced mining group who has proposed an agreement whereby they would open up some of the historic workings to extract and process previously untreated mineralized backfill from the underground workings of the historic San Rafael mine at El Oro, Mexico. Profits from the recovery of gold and silver bearing materials would be shared and in addition, the underground work would give Xali Gold underground access for drilling the previously developed targets for new mineralized zones. Previous drilling from surface has proven that the gold and silver mineralization continues at depth underneath historic workings from which 5 million (“M”) ounces (“oz”) gold equivalent (4M oz gold and 44 M oz silver) was produced. Drilling from underground would be much less expensive than drilling from surface due to the occurrence of up to 300 metes of volcanic rocks above the gold and silver bearing veins.

Peru

Xali Gold is in discussions with several other companies to acquire additional gold and silver exploration projects in Peru. The exploration projects are either high or low sulphidation systems, where Xali Gold’s technical team has extensive experience.

Shares for Debt

The Company also advises that it has entered into an agreement pursuant to which the Company has agreed to issue 2,927,000 common shares of the Company at Cdn$0.05 to Lotz CPA Inc, in order to cover the debt of Cdn$146,350, due for CFO consulting fees over 5 years. The Common Shares issued pursuant to the shares for debt settlement will be subject to a four month hold period. This transaction is in compliance with applicable corporate and securities laws and is subject to TSX Venture approval.