Xali Gold Corp. (TSXV:XGC) ("Xali Gold” and/or the “Company”) is
pleased to announce that the Company has entered into an option
agreement to acquire 100% interest in the Victoria Property in the
Central Region of Newfoundland and Labrador, named as one of the
top 10 mining jurisdictions in the world (Fraser Institute 2021).
“While we are still very committed to and
enthusiastic about our gold projects in Mexico, we couldn’t pass up
the opportunity to acquire such an exciting gold exploration play
in Newfoundland where recent exploration successes have already
defined two new gold deposits and several discoveries,” stated
Joanne Freeze, President and CEO of Xali Gold. “Our team has spent
various years working in Newfoundland in the past and we are very
excited to be back, especially with a project in such close
proximity to Atlantic Canada’s largest undeveloped gold
resource.”
Xali Gold’s new Victoria Property is located
just 3 kilometres (“km”) southwest of Marathon’s Valentine Gold
Project (“Marathon”), within a structurally controlled gold belt of
Central Newfoundland, an emerging significant exploration
jurisdiction in Canada. The new gold district occurs within a
northeast-trending structural corridor defined by crustal-scale
faults extending from southwestern to north-central Newfoundland.
Marathon has defined (Measured and Indicated) reserves of 3.14
million ounces (“Moz”) gold and Inferred resources of 1.00 Moz
(https://marathon-gold.com/valentine-gold-project/). Marathon’s
mine construction is expected to commence in early 2022, on
schedule to build the largest gold mine in Atlantic Canada. *There
are no assurances that similar results would be obtained on Xali
Gold’s Victoria Property.
The Victoria Property, comprising 79 claims
covering 1975 hectares, is also situated 65km southwest of the
historic mining town of Buchans where mining was continuous for 57
years starting in 1905. From 1928 to 1984, ASARCO mined
approximately 16 million tonnes from five high grade orebodies,
with an average mill head grade of 14.51% zinc, 7.56% lead, 1.33%
copper, 126 g/t silver and 1.37 g/t gold.
Xali Gold’s new Victoria Property demonstrates
excellent exploration potential for gold mineralization, due to its
location within the structurally controlled gold belt as well as
distinctive magnetic-geophysical anomalies identified and high
grade gold discovered in glacial till samples on the property. The
high grade gold intervals reaching 178 grams per tonne (“gpt”),
66.7 gpt and 10.1 gpt were discovered by Rubicon Minerals
Corporation in 2003. There are no records of the gold bearing
samples being followed up nor of systematic exploration being
performed on the property, although some exploration for base
metals was conducted. Exploration was likely hampered by the lack
of ground access which required helicopter support, however,
several quad trails have now opened up access on the
property.
An exploration permit application was submitted
to the Newfoundland government on June 30 and the permit is
expected to be issued prior to early September 2021 when field work
is planned to commence.
Terms of the Agreement
Xali Gold has entered into an Option Agreement
(“Agreement”) which provides for the following:
Acquire 100% interest, subject to a 2% Net
Smelter Royalty* (“NSR”) by:
- Issuing a total of 3.5 million
(“M”) shares over 3 years
- Making payments of a total of CDN
$100,000 over 3 years
- Funding exploration activities of
CDN $650,000 over 3 years
*Xali Gold has the right to buyback 1% of the
NSR for CDN $1M at any time.
Of the above, the following is a firm
commitment:
- Payment of CDN $25,000
- Issue 500,000 common shares
- Funding exploration activities of
CDN $50,000 within one year
About Xali Gold
Xali Gold has launched a comprehensive growth
strategy to acquire gold and silver projects with near surface
exploration potential, near-term production potential and
previous mining histories. Xali Gold plans to
advance our growing bank of Mexican assets internally and/or with
industry partners.
The acquisition of the SDA Plant, suitable
for treating high grade gold and silver mineralization, along
with the acquisition of rights to the El Dorado gold and silver
historic mines was the initial step in this strategy.
The profit-sharing agreement on the potentially
leachable Cocula Gold Project was the second step and is a key
component of our asset base. In addition to the potential for in
expensive extraction processes such as leaching, it has excellent
near surface exploration potential.
The Company is currently evaluating other
properties complementary to the SDA plant and El Dorado or stand
alone such as the Cocula Gold Project.
El Oro, remains as our flagship asset, as it is
a district scale gold project encompassing a well-known prolific
high-grade 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 No. 37, Mining of
the El Oro and Tlapujahua Districts. 1920, T. Flores*).
Modern understanding of such systems indicates that several of the
El Oro district’s veins hold excellent discovery potential.
Xali Gold is dedicated to being a responsible
Community partner.
Joanne C. Freeze, P.Geo., President, CEO and
Matthew Melnyk, CPG., Director Operations, are Qualified Persons as
defined by National Instrument 43-101 for the projects discussed
above. Ms. Freeze and Mr. Melnyk have 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 Information
This news release may contain forward-looking
information (as such term is defined under Canadian securities
laws) including but not limited to the potential for discovery on
the El Dorado, Cocula and El Oro Properties and other statements
that are not historical facts. While such forward-looking
information is expressed by Xali Gold in good faith and believed by
Xali Gold to have a reasonable basis, they 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 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
FreezePresident & CEO Tel: + 1 (604)
689-1957 info@xaligold.com
NR 097
Xali Gold (TSXV:XGC)
Historical Stock Chart
From Jul 2024 to Aug 2024
Xali Gold (TSXV:XGC)
Historical Stock Chart
From Aug 2023 to Aug 2024