Xali Gold ( XGC:TSXV ) has assembled a Western Mexico project portfolio of gold assets and have developed a strategy for organic growth to exploit its Flagship Gold Project El Oro, a prolific high-grade gold-silver epithermal vein system.
Xali has acquired gold and silver projects with near surface exploration potential & near-term production potential:
El Dorado Gold-Silver Project:
Rights to the El Dorado gold and silver historic mines was the initial step in this strategy, providing Xali the right to explore and produce gold, silver and other metals for life of mine.
Cocula Gold Project: profit-sharing agreement
- Near term, low cost production potential by leaching and/or flotation
- Retain 70% of profits
- Recent drill targets Identified
Acquisition of the “SDA” Plant:
The SDA Mill is a fully operational flotation plant which also includes a precious metals leach circuit – Merrill Crowe system and associated assets, licenses and agreements, suitable for treating high grade gold and silver mineralization.
These assets are being positioned to create cash flow to develop Flagship El Oro Gold District where the primary focus is the past producing San Rafael Vein; 2.4km strike of high-grade Epithermal veins.
The project covers 20 veins with past production and more than 57 veins in total and 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. Historical Average grades: 10-12 g/t gold & 120-160 g/t silver
- Xali has identified 31 exploration targets
Flooding in one section of the San Rafael vein in 1929 resulted in the other two sections flooding and work ceasing abruptly and unexpectedly. El Oro was not mined out.
The financial benefits from Western Mexico operations will translate across platforms to strengthen the Company’s efforts to explore and potentially mine areas demonstrated to contain mineralization of value
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