Xali Gold Commences Applications for Drilling Permits at El Oro, Mexico

VANCOUVER, British Columbia, Jan. 19, 2022 (GLOBE NEWSWIRE) -- Xali Gold Corp. (TSXV:XGC) ("Xali Gold” or the “Company”) is pleased to announce that it has started a new drilling permit application process for the 100% held El Oro gold-silver Project in Mexico.

New drill targets have been identified by using a three-dimensional (“3D”) Leapfrog model and are designed to test potential extensions to high-grade gold and silver zones intersected by previous drilling. Some of the higher grades were found in several veins with overlying lower grade disseminated gold near the Mexico-Esperanza Mines border area of the San Rafael vein.

The Mexico-Esperanza high-grade intersections at the El Oro Project include:

- 16.7g/t Au & 32.5g/t Ag over 1.4m
- 30.7g/t Au & 3.0g/t Ag over 1.9m
- 12.8g/t Au & 44.0g/t Ag over 0.5m
- 13.7g/t Au & 6.5g/t Ag over 3.0m
- 2.4g/t Au & 372g/t Ag over 0.5m
- 18.1g/t Au & 137g/t Ag over 0.4m and
- 1.0g/t Au & 5.0g/t Ag over 75m

A video showing the Leapfrog model can be found on the Company’s website.

“Our recent acquisitions in Western Mexico give us great near surface exploration and near-term production opportunities but El Oro remains our flagship project and we are really looking forward to getting back to drilling there,” says Joanne Freeze, President and CEO of Xali Gold. “The El Oro district, which we hold 100% of, is a well-known historic mining district with over 8 million ounces of gold equivalent produced historically from only 2 of more than 50 known veins. While we knew we have a stacked boiling system, similar to Juanicipio (held by Mag Silver Corp.) and others in Mexico, the new 3D modelling has really helped us understand the spatial relationships between the various high-grade intersections in different veins. The disseminated and high-grade intersections are literally stacked above one another, indicating a structural control with a vertical component. The disseminated gold mineralization in the tuffaceous horizon is also indicative of an underlying feeder vein system.”

About Xali Gold

Xali Gold has a growth strategy to acquire gold and silver projects with near surface exploration potential, near-term production potential and previous mining histories in Mexico and also in Newfoundland, Canada. Xali Gold plans to advance our growing bank of gold and silver assets internally and/or with industry partners.