Great News! XGC is kicking into high gear announcing that a 20 hole sonic drill program has commenced on the Mexican Mine Tailings Reprocessing Project at El Oro in Mexico. Xali's partnership with Kappes, Cassiday & Associates (“KCA”), who have teamed up with Starcore International Mines Ltd. is a winning combination.
It's always good to see when a plan comes together.
Drilling Commences at the El Oro Tailings Project in Mexico
2024-06-17 07:00 ET - News Release
VANCOUVER, British Columbia, June 17, 2024 (GLOBE NEWSWIRE) -- Xali Gold Corp. (TSXV:XGC) ("Xali Gold” or “the Company”) is pleased to announce that a 20 hole sonic drill program has commenced on the Mexican Mine Tailings Reprocessing Project (“Tailings Reprocessing”) at El Oro in Mexico (the “El Oro Tailings Project”). Drilling is being carried out by Major Drilling Group International for the purpose of taking a representative sample, which will be used in metallurgical test work to confirm the process flowsheet.
As per Xali Gold News Releases dated April 15, 2024 and May 16, 2024, the Company signed a Letter of Intent to enter a Purchase Agreement with Kappes, Cassiday & Associates (“KCA”), who have teamed up with Starcore International Mines Ltd. (“Starcore”) to put into production our environmental rehabilitation project to clean up the Mexico Mines Tailings in El Oro. Once production begins on the El Oro Tailings Project, KCA will pay Xali Gold a gross royalty equal to 4% of the sales income received from all gold and silver produced, less any royalties due and payable to others (the Municipality of El Oro), but in no case less than a 3% gross royalty.
Starcore has joined forces with KCA to launch an environmental rehabilitation project to clean up mine tailings from the municipality of El Oro in Mexico. The two groups have agreed to form a joint venture, with KCA contributing its expertise and services for the project aimed at rehabilitating the environment, while Starcore assumes the role of Operator and Financier for the joint venture.
“We are very pleased that significant work has commenced so quickly on the El Oro Tailings Project,” says Joanne Freeze, President and CEO of Xali Gold. “The fact that KCA is using Starcore’s already permitted mine plant site nearby for the reprocessing, has potential to allow us to get the El Oro Tailings Project running sooner than expected.”
The tailings were the subject of a National Instrument 43-101 Resource Study in 2014 which reported that the tailings contain an Inferred Mineral Resource Estimate* of 1.27M tonnes at a grade of 2.94 grams per tonne (“gpt”) gold and 75.12 gpt silver (3.85 gpt gold equivalent) containing 119,900 ounces of gold and 3,061,200 ounces of silver. KCA’s recent work has resulted in an estimated recovery of over 75% of the gold and silver. These results are on composites which did not access the full depth of the tailings. While the data indicates that the tailings are mineralogically uniform, the new drill program is designed to provide samples to confirm this assumption. The Mexico Mine tailings are situated on land owned by the Municipality of El Oro. El Oro is one of the towns designated as “Pueblo Magico” near Mexico City. Cleanup of these tailings will eliminate potential environmental risks while releasing a large block of land which the Municipality can use for further development.