Xali Gold Turns Exploration Attention from Mexico to South America

VANCOUVER, British Columbia, Aug. 03, 2023 (GLOBE NEWSWIRE) -- Xali Gold Corp. (TSXV:XGC) (“Xali Gold” or the “Company”) is pleased to advise that it has decided to review exploration opportunities in South America including Peru and provides an update on Mexican assets.

“Our assets in Mexico are very attractive such that we expect to be able to generate cash flow in the near future, which would allow us to continue working on other opportunities without incurring equity dilution,” says Joanne Freeze, President and CEO of Xali Gold. “With the exception of El Oro, we are no longer incurring any costs to maintain exploration assets in Mexico. This includes the El Dorado property, which while still of interest, has taken too long to receive drill permits and the Company can no longer justify the holding costs.”

Peru Properties

With renewed interest in gold and silver exploration in South America, the Company is reviewing options to resume exploration in Peru and other countries. The Company still maintains some properties in Peru including the Lucero Gold Property acquired several years ago.

Lucero is a high sulphidation disseminated gold prospect occurring within a prolific mineral belt and located between the Tantahuatay and La Zanja mines in Cajamarca, Northern Peru. Gold mineralization has been found to date in three locations in an area extending over 1.3 by 1.0 kilometres (“km”) on the Lucero property. Gold mineralization occurs in silicified volcanic rocks and hydrothermal breccias with anomalous gold values ranging from 0.155 to 1.575 grams per tonne (“g/t”) over widths of 5 to 20 meters (“m”). The highest grade gold zone found to date (1.575 g/t over 10 m) occurs in a hydrothermal breccia body with vuggy silica fragments which is the typical host for high sulphidation disseminated gold deposits in Peru and elsewhere. The silicified and mineralized zones are hosted by volcanic rocks belonging to the Calipuy Formation which also hosts the Yanacocha (50 million ounces) and Pierina (8 million ounces) gold deposits amongst others. Lucero is located 34 km NW of the Yanacocha Mine, 18 km west of the Tantahuatay Mine and approximately 12 km NE of the La Zanja Mine.