Xali Gold Buys Back NSR on Casua Property in Peru

VANCOUVER, British Columbia, Oct. 04, 2023 (GLOBE NEWSWIRE) -- Xali Gold Corp. (TSXV:XGC) ("Xali Gold” or the “Company”) is pleased to advise that it has agreed to buy back a 1.5% Net Smelter Return (“NSR”) royalty currently granted over the Casua Property (the “Property”) from Minera Silex Peru S.R.L., whose parent company is Golden Minerals Company (“Golden Minerals”).

The Company holds a 100% interest in the Casua Property, province and department of Puno, southern Peru. The Casua Property, held 100% by Xali Gold, covers a silver (“Ag”) rich low sulphidation vein system. Three veins have been found to contain high grades of silver with lead (“Pb”) and zinc (“Zn”) mineralization. Anomalous gold levels also occur in high sulphidation style alteration surrounding the veins and are associated with rhyolite domes.   Historic mine workings (collapsed) and remnants of a small smelting furnace are believed to date back to the time of Spanish explorers in the late 1800’s. The low sulfidation system comprises three vein systems within a northwest trending system traced to date over 700 metres in strike length.

Sampling to date indicates grades of 52.91 ounces per tonne (“oz/t”) Ag, 4.62% Pb, 0.12% Zn over 0.10 metre (“m”); 9.98 oz/t Ag, > 10% Pb, 1.59% Zn over 0.5m and 13.13 oz/t Ag, 2.05% Pb, 0.07% Zn over 1m on surface. Selected samples from mine dumps contain up to 31.24 oz/t Ag, 8.7 ‐ 10% Pb, 1.81% Zn and 0.21% copper (“Cu”).

The property was acquired from Golden Minerals in 2010 by issuing 60,000 shares and granting the NSR.

“We are excited to be getting back to exploration in various countries while we continue to work on options to generate near-term cash flow from our Mexican assets,” says Joanne Freeze, President and CEO of Xali Gold.

Buy Back Terms

Terms of the NSR buy back include the following considerations:

1. cash consideration in the aggregate amount of US$20,000;
   
   
2. 100,000 common shares in the capital of the Company (“Consideration Shares”) to be issued by the Company to Golden Minerals Company (“Golden Minerals”);
   
   
3. 300,000 Consideration Shares to be issued by the Company to Golden Minerals in the event that 10,000 meters of drilling is successfully completed on the Property, or on an earlier date mutually agreed upon by the parties; and
   
   
4. 600,000 Consideration Shares to be issued by the Company to Golden Minerals in the event that the Company obtains a PEA (Preliminary Economic Assessment) or other positive engineering study in accordance with National Instrument 43-101 Standards of Disclosure For Mineral Projects (“NI 43-101”) over any or all of the Property, or on an earlier date mutually agreed upon by the parties.