Xali Gold Advised by Sun River Gold that they Plan to be Operational with El Oro Tailings Reprocessing in Q2 2022
October 19 2021 - 8:00AM
Xali Gold Corp. (TSXV:XGC) ("Xali Gold” and/or the “Company”) is
pleased to announce that further to Sun River Gold (“Sun River”)
advising the Company that it has arranged financing of
approximately US$6.5M (see News Release dated October 14, 2021),
they also expect to have the Tailings Reprocessing Facility
operational in Q2 2022 at El Oro, Mexico.
Permitting is also progressing well and final
permits are expected to be received within approximately one month.
Sun River has also advised that most of the equipment required for
the reprocessing operation has been procured.
Xali Gold’s subsidiary, CCM El Oro Jales (“CCM
El Oro”), has an agreement with the municipality of El Oro which
provides the Company the right to recover all available gold and
silver from the tailings deposit and pay to the Municipality of El
Oro an 8% Net Profits Interest (“NPI”). Candente Gold also retains
the first US$1.5M from the 8% NPI payable to the Municipality. Sun
River must make all NPI payments to the Municipality.
Sun River has the option to acquire 100% of the
Tailings Project from CCM El Oro by making staged payments
totalling US$500,000 (paid), bring the tailings into commercial
production by October 31, 2021 (extended to March 31, 2022 due to
COVID), and grant to the Company a 5% NPI, Life of Mine royalty
(the “Candente Royalty”) as well as the Municipality’s 8% NPI on
production from the properties.
Sun River is a private Arizona based corporation
managed by an experienced team of mining professionals with a
combined 80 years of mining experience in Mexico, including
specific experience in the reprocessing of old gold and silver
tailings.
The Mexico Mine Tailings contain an Inferred
Resource* of 1,267,400 Tonnes grading 2.94 Au g/t, 75.12 Ag g/t
containing 119,900 ounces of gold and 3,061,200 ounces of
silver.
*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 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 gold and silver assets internally and/or with industry
partners.
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 Victoria, 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 & CEOTel: + 1 (604)
689-1957info@xaligold.com
NR 104
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