Xali Gold options high sulphidation gold project in Central Peru

Xali Gold holds gold and silver exploration and development projects in Peru and Mexico.

Xali Gold Corp. has announced the resumption of its exploration activities in Peru by optioning the Majo Project from Alpha Mining S.A.C. The Majo Project is located in a renowned high sulphidation epithermal belt in South-Central Peru, an area rich in gold and silver deposits.

"We are excited to refocus our efforts on exploration in this highly prospective region," said Matthew Melnyk, Director and Structural Geologist at Xali Gold. "The historical exploration results from the Majo Project present an exceptional opportunity to develop the area's untapped potential. With our Mexican assets progressing smoothly, we are eager to apply our expertise to advance the Majo Project."

The Majo Project sits within a gold and silver-rich belt, where major players like Teck, Sumitomo, Fresnillo, Rio Tinto, and Pan American Silver have established land packages. Notable deposits in the region include Corihuarmi, Pico Machay, Breapampa, and San Genaro, among others.

Historical work on the project has uncovered significant gold and silver anomalies over an area of approximately 1.0 km in length and 0.5 km in width. These anomalies are associated with Miocene-Pliocene magmatic activity and structural controls. The host rocks resemble those found in other major deposits, such as Yanacocha and Alto Chicama.

Rock chip samples from the Majo Project have shown promising gold values, ranging from 0.1 to 7.7 grams per tonne (gpt) in hydrothermally altered rocks. The exploration revealed silica and alunite alterations and hydrothermal breccias, indicating a strong potential for high-grade gold mineralization.

While the property has not yet been drilled, several drill targets have been identified, and some environmental and social impact assessment (ESIA) work has been conducted. Xali Gold plans to carry out its own fieldwork to refine these targets further and potentially discover new ones.

Xali Gold and Alpha have entered into a binding Memorandum of Understanding (“MOU”) with the following terms to acquire 100% interest in the Majo Project: 

• 1) Pay all Annual Mining Fees commencing with those due in June 2024 (paid);
• 2) Issue 50,000 shares in Xali Gold on signing the Definitive Agreement;
• 3) Issue 100,000 shares within 30 days of receiving the first drilling permit;
• 4) Pay $50,000 cash upon the closing of a financing by Xali Gold for the drill program (minimum financing of $1,000,000);
• 5) Execute a drill program of a minimum of 3,000 metres;
• 6) Deliver $100,000 in cash or shares 12 months after receiving drilling permits;
• 7) Deliver $150,000 in cash or shares 24 months after receiving drilling permits;
• 8) Deliver $200,000 in cash or shares 36 months after receiving drilling permits; and
• 9) Grant a 1.5% net smelter return to Alpha, with a buyout option of $1.5M in cash or shares. 

  A Definitive Agreement will replace the MOU.