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Xali Gold Buys Back NSR on Casua Property in Peru

Posted by Aidi Munoz at 7:00 AM on Wednesday, October 4th, 2023

In a strategic move set to unlock significant value, Xali Gold Corp. (XGC: TSXV) proudly announces its agreement to repurchase a 1.5% Net Smelter Return (“NSR”) royalty tied to the Casua Property from Minera Silex Peru S.R.L., a subsidiary of Golden Minerals Company (“Golden Minerals”). With full ownership reinstated, Xali Gold is poised to harness the untapped potential of this Peruvian treasure trove.

Located in the province and department of Puno, southern Peru, the Casua Property boasts a rich, low-sulfidation vein system, primarily abundant in silver (“Ag”) with notable lead (“Pb”) and zinc (“Zn”) mineralization. Historically, it has yielded impressive grades, including samples of 52.91 oz/t Ag, 4.62% Pb, and 0.12% Zn over 0.10 meters, and up to 31.24 oz/t Ag, 8.7-10% Pb, and 1.81% Zn from selected mine dumps.

The buyback terms include a cash payment of US$20,000, alongside the issuance of common shares to Golden Minerals. Furthermore, the potential issuance of additional shares is contingent upon successful drilling or the attainment of a Preliminary Economic Assessment (PEA) in accordance with National Instrument 43-101 Standards of Disclosure For Mineral Projects (“NI 43-101”) on the Property.

Joanne Freeze, President and CEO of Xali Gold, expressed enthusiasm for this pivotal move, stating, “We are excited to be getting back to exploration in various countries while we continue to work on options to generate near-term cash flow from our Mexican assets.”

Xali Gold is well-positioned to capitalize on the resurgence of the Casua Property and continues to explore avenues for creating value in its Mexican assets, emphasizing local partnerships and potential near-term cash flow. This includes the El Oro Project, a highly prized asset with a rich history of gold-silver production and promising discovery potential. Additionally, Sun River Gold (“SRG”) advances the Mexican Mine Tailings Project at El Oro, providing financial progress.

The Company’s dedication to responsible community engagement underscores its commitment to sustainable growth. With an experienced team and a portfolio of promising projects, Xali Gold is poised for a bright future in the mining sector.

VIDEO: Xali Gold $XGC: Leveraging Mexican Gold Assets To Develop Cash Flow for Flagship Property $FMG $MEX $AGI $DSV

Posted by AGORACOM at 4:26 PM on Tuesday, July 27th, 2021

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

Xali Gold $ Permits Applied for Mexico Mines Tailings Project $ $ $ $

Posted by AGORACOM at 8:31 AM on Tuesday, April 13th, 2021

Xali Gold Corp.(TSXV:XGC) (“Xali Gold” and/or the “Company”) is pleased to advise that permit applications have been submitted for the Mexico Mines Tailings Project in El Oro, Mexico. The permits are to allow both the transportation and re-processing of the Mexico Mine tailings at a new plant site located just 5 kilometers from the current location. Sun River Gold “SRG” and their Mexican subsidiary, Remediacion Rio Sol “RRS”, will be conducting all of the work on the tailings as part of an option agreement to acquire the Tailings Project and Xali Gold’s subsidiary, Minera CCM El Oro Jales.

A land package comprising 25 hectares has been purchased for the new plant site and the re-processing plant is expected to be operational within 12 months from receiving permits. Extensive laboratory testing has been performed, which was critical in completing design work for the plant and preparing detailed planning documents.

“We are very excited with the work that SRG has completed to advance the Tailings Project,” says Joanne Freeze, President and CEO of Xali Gold. “There have been some delays due to government closures during the COVID pandemic, but the project is now moving forward and we are very excited to the re-processing getting into operation.”

In addition to laboratory test work, SRG has also completed the following work in preparation for the operation:

  • Design of the plant site
  • Mine plan of tailings indicating extraction levels over the years
  • Developed a contour map demonstrating resulting topography of municipal land once tailings are removed
  • Engaged power contractor to upgrade and extend power lines to site
  • Secured access across private land for roads and power lines
  • Secured access to water from local sources

Xali Gold’s subsidiary, CCM El Oro Jales, has an agreement with the municipality of El Oro which provides the Company the right to recover all available gold and silver from the Mexico Mines tailings deposit and pay to the Municipality of El Oro an 8% Net Profits Interest (“NPI”). Xali Gold will also retain the first US$1.5M from the 8% NPI payable to the Municipality.

SRG has the option to acquire 100% of the Tailings Project by making staged payments totalling US$500,000 (paid), bringing the tailings into commercial production within 36 months of the effective date of the option agreement, and granting to the Company a 5% NPI, Life of Mine royalty as well as the Municipalities 8% NPI on production from the properties. The 36 month term has been extended for 6 months providing that SRG demonstrates sufficient progress during each 3 month period.

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Xali Gold $ Delineates Drilling Targets at El Dorado $ $ $ $

Posted by AGORACOM at 8:35 AM on Thursday, February 25th, 2021

Xali Gold Corp. (TSXV:XGC) (“Xali Gold” and/or the “Company”) is pleased to advise that new drill targets have been delineated on the El Dorado Gold-Silver Project, located in Nayarit State, Mexico through the development of a new 3D geological model. The new model indicates high grade mineralization occurring in multiple parallel veins such that future mining could focus on several veins at once to potentially allow reduced mining costs. Drilling is planned to test potential lateral extensions to the high grade zone.

Permitting applications are in progress for the drilling which are expected to take 3 to 4 months to receive. Permit applications are also being prepared for the reopening of the historical Hundida Mine and should take 6 to 10 months to receive. Mineralization is planned to be shipped from this area to the nearby SDA plant under acquisition from Magellan Acquisitions.

The El Dorado vein system has a history of small-scale mining from two veins in the Hundido and El Dorado mines (see News Release April 28, 2020) but four veins with parallel high-grade zones have been delineated in the new model. Additionally, several vein targets have been identified along trend for follow-up exploration.

Prospero Silver Corp. (“Prospero”) explored the El Dorado property between 2010 and 2011. Their drilling intersected multiple steeply-dipping silicified mineralized zones extending from near-surface to the 180 metre (“m”) drilled depth and over a strike length of 440m.   Prospero intersected grades ranging from 3 to 40 grams per tonne (“gpt”) gold and 57 to 500 gpt silver over true widths ranging from 0.52 to 11.2 m. (

Significant results reported by Prospero on Dec 10, 2010 included:

  • 16.17m grading 4.03 g/t gold, 204 g/t silver, 4.0% lead, and 1.75% zinc; and 2.32m grading 6.04 g/t gold and 140 g/t silver in hole DOR-10-11. (–December-10,-2010.pdf)

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