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Drilling program for metallurgical test work completed on

VANCOUVER, British Columbia, July 11, 2024 (GLOBE NEWSWIRE) — Xali Gold Corp. (TSXV:XGC) (“Xali Gold” or the Pursue”) is pleased to announce that the drilling program for metallurgical test work on the Mexican mine dumps in El Oro, Mexico has been completed and samples have been received for shipment to Kappes, Cassiday & Associates (“KCA”) laboratory in Reno, Nevada for metallurgical test work.

To ensure that the drilling program covers the full extent of the tailings, the program was expanded from the originally planned 20 holes to 34 holes at an average depth of 20 meters. The recent drilling program also found that the average depth of the tailings is slightly deeper than previous surveys. The drilling was carried out by Major Drilling Group International using a Sonic Rig core drill.

“We are very pleased that the drilling program at the Mexico mine dumps has been successful and look forward to the metallurgical results which we expect in approximately 8 weeks. The increasing depth of the dumps is very encouraging as this could also mean an increase in volume and an increase in the resource, but no updates to the resource estimate are recommended at this time,” says Joanne Freeze, President and CEO of Xali Gold.

According to Xali Gold’s press releases dated April 15, 2024 and May 16, 2024, the Company signed a letter of intent to enter into a purchase agreement with KCA for the Mexican mine tailings reprocessing project (the “El Oro tailings project“), which provides that KCA will extract and sell gold and silver from the tailings and subsequently pay to Xali Gold a gross royalty equal to 4% of the sales proceeds from total gold and silver production less all royalties due and payable to a third party (the Municipality of El Oro), but in no event less than a 3% gross royalty.

Since signing the Letter of Intent with Xali Gold, KCA has partnered with Starcore International Mines Ltd. (“Starcore”) to form a joint venture (“JV”) under which they would share resources for the reprocessing of Mexican mine tailings, with an option on Xali Gold from the municipality of El Oro, Mexico.

The tailings were the subject of a National Instrument 43-101 compliant resource study in 2014 which reported that the tailings contained an inferred mineral resource* of 1.27 million tonnes grading 2.94 grams per tonne (“gpt”) gold and 75.12 gpt silver (3.85 gpt gold equivalent), representing 119,900 ounces gold and 3,061,200 ounces silver. KCA’s recent work has resulted in an estimated recovery of over 75% of the gold and silver. These results are for composite samples that did not reach 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 located on land owned by the El Oro community. Cleanup of these tailings will eliminate potential environmental risks while freeing up a large tract of land for the community to use for further development.

*Note: Mineral resources are not mineral reserves and their economic viability has not been demonstrated. All figures have been rounded to reflect the accuracy of the estimate. For further information, please refer to the 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 and effective 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 covering a well-known, prolific, high-grade gold-bearing epithermal gold-silver vein system in Mexico. The project includes 20 veins with past production and a total of over 57 veins, with just two of these veins producing approximately 6.4 million ounces of gold and 74 million ounces of silver (see Mexican Geological Survey Bulletin No. 37, Mining in the El Oro and Tlapujahua Districts. 1920, T. Flores).

Modern understanding of epithermal vein systems indicates that several veins in the El Oro District have excellent discovery potential, particularly below and adjacent to the historic workings of the San Rafael vein, which has been mined to an average depth of only 200 m.

Xali Gold strives to be a responsible partner to the community.

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 news release.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Forward-looking information
This news release may contain forward-looking information (as that term is defined under Canadian securities laws), including, but not limited to, historical production records and resource estimates. Although such forward-looking information is made by Xali Gold in good faith and Xali Gold believes it has a reasonable basis, it may relate to future events and conditions and is therefore subject to inherent risks and uncertainties, including those set out in Xali Gold’s MD&A. Factors that could cause actual results to differ materially from those in the forward-looking information include, among others, gold and silver prices, results of exploration and development activities, regulatory changes, defects in title, availability of materials and equipment, timeliness of regulatory 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 Directors of Xali Gold Corp.

“Joanne Freeze” P.Geo.
President, CEO and Director

For further information please contact:
Joanne Freeze, President and CEO
Phone: + 1 (604) 689-1957
[email protected]

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