Drilling Program for Metallurgical Test Work Completed on the El Oro Tailings in Mexico
11 Juli 2024 - 1:00PM
Xali Gold Corp. (TSXV:XGC) ("
Xali Gold” or “the
Company”) is pleased to announce that the drilling
program for metallurgical test work on the Mexican Mine Tailings in
El Oro, Mexico has been completed and samples are being prepared
for shipping to the Kappes, Cassiday & Associates
(“
KCA”) lab in Reno, Nevada for the metallurgical
test work.
To ensure that the drilling program evaluated
the entire extent of the tailings, the program was expanded from
the initially planned 20 holes to 34 holes which averaged 20 meters
deep. The recent drilling program also determined that the average
depth of the tailings is slightly deeper than previous studies.
Drilling was carried out by Major Drilling Group International
using a sonic rig core drill.
“We are very pleased that the drilling program
on the Mexico Mine Tailings was a success, and we look forward to
the metallurgical results, which we expect to receive in
approximately 8 weeks. The increase in depth to the tailings is
very encouraging as it could also mean an increase in volume and an
increase to the resource but there are no updates recommended on
the resource estimation at this time,” says Joanne Freeze,
President and CEO of Xali Gold.
As per Xali Gold News Releases dated April 15,
2024 and May 16, 2024, the Company signed a Letter of Intent to
enter a Purchase Agreement with KCA on the Mexican Mine Tailings
Reprocessing Project (the “El Oro Tailings
Project”), which provides for KCA to recover and sell gold
and silver from the Tailings and then 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.
Since signing the LOI with Xali Gold, KCA teamed
up with Starcore International Mines Ltd.
(“Starcore”) to form a Joint Venture (“JV”)
whereby they would share resources for the reprocessing of the
Mexican Mine Tailings, under option to Xali Gold from the
municipality of El Oro in Mexico.
The tailings were the subject of a National
Instrument 43-101 Resource Study in 2014 which reported that the
tailings contain an Inferred Mineral Resource Estimate* of 1.27M
tonnes at a grade of 2.94 grams per tonne (“gpt”)
gold and 75.12 gpt silver (3.85 gpt gold equivalent) containing
119,900 ounces of gold and 3,061,200 ounces of silver. KCA’s recent
work has resulted in an estimated recovery of over 75% of the gold
and silver. These results are on composites which did not access
the full depth of the tailings. While the data indicates that the
tailings are mineralogically uniform, the new drill program was
designed to provide samples for metallurgical testing to confirm
this assumption. The Mexico Mine tailings are situated on land
owned by the Municipality of El Oro. Cleanup of these tailings will
eliminate potential environmental risks while releasing a large
block of land which the Municipality can use for further
development.
*Note: Mineral Resources are not Mineral
Reserves and do not have demonstrated economic viability. All
figures have been rounded to reflect the accuracy of the estimate.
For more information see “National Instrument 43-101 Technical
Report on the Inferred Mineral Resource Estimate of the Mexico Mine
Tailings” prepared by Nadia Caira, P.Geo. and Allan Reeves, P.Geo.,
dated August 25, 2014 with an effective date of July 8, 2014
available at www.sedar.com.
About Xali Gold
Xali Gold has gold and silver projects in Mexico
and Peru. The Company’s flagship project El Oro is a district scale
gold project encompassing a well-known prolific high-grade gold
dominant gold-silver epithermal vein system in Mexico. The project
covers 20 veins with past production and more than 57 veins in
total, from which 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 (Ref. Mexico Geological Service Bulletin
Nr. 37, Mining of the El Oro and Tlapujahua Districts. 1920, T.
Flores).
Modern understanding of epithermal vein systems
indicates that several of the El Oro district’s veins hold
excellent discovery potential, particularly below and adjacent to
the historic workings of the San Rafael Vein, which was mined to an
average depth of only 200m.
Xali Gold is dedicated to being a responsible
Community partner.
Joanne C. Freeze, P.Geo., President and CEO is
the Qualified Person as defined by National Instrument 43-101 for
the projects discussed above. Ms. Freeze has reviewed and approved
the contents of this release.
Neither the TSX Venture Exchange nor its
Regulation Services Provider accepts responsibility for the
adequacy or accuracy of this release.
Forward-looking InformationThis
news release may contain forward-looking information (as such term
is defined under Canadian securities laws) including but not
limited to historical production records and resource estimates.
While such forward-looking information is expressed by Xali Gold in
good faith and believed by Xali Gold to have a reasonable basis,
they may address future events and conditions and are therefore
subject to inherent risks and uncertainties including those set out
in Xali Gold’s MD&A. Factors that cause the actual results to
differ materially from those in forward-looking information
include, without limitation, gold and silver prices, results of
exploration and development activities, regulatory changes, defects
in title, availability of materials and equipment, timeliness of
government approvals, potential environmental issues, availability
of capital and financing and general economic, market or business
conditions. Xali Gold expressly disclaims any intention or
obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise,
except in accordance with applicable securities laws.
On behalf of the Board of Xali Gold
Corp.
“Joanne Freeze” P.Geo.President, CEO and
Director
For further information please contact:Joanne
Freeze, President &
CEO
Tel:
+ 1 (604) 689-1957
info@xaligold.com NR
133
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