Xali Gold Expands Reach with Acquisition of Pico Machay Gold Project
Xali Gold's Strategic Acquisition of the Pico Machay Gold Project
Xali Gold Corp. (TSXV:XGC) is thrilled to announce a significant step in its growth strategy with the planned acquisition of Minera Calipuy S.A.C, the entity that wholly owns the esteemed Pico Machay Gold Project situated in Central Peru. This acquisition, executed through a Share Purchase Agreement, signifies Xali Gold's intent to strengthen its position within one of the world's foremost epithermal gold-silver regions.
Understanding the Pico Machay Gold Project
The Pico Machay Gold Project is renowned for being a high-sulphidation gold deposit, located in the northern part of the Southern Peru Epithermal Gold-Silver Belt. This area is rich in mineral resources and hosts several world-class gold deposits, making it a prime location for further exploration and development. The project boasts an estimated historical resource of 264,600 ounces of gold, highlighting its potential for value generation.
Resource Evaluation and Potential
The resource includes both measured and indicated resources of approximately 10.6 million tonnes at a grade of 0.78 grams per tonne. This initial resource estimate, calculated during a period when gold prices were significantly lower, leaves ample room for improvement and expansion as current market conditions favor a more favorable price environment. The potential for resource upgrades will be a key focus for Xali Gold as it embarks on this project.
A Vision for Future Development
Joanne Freeze, Xali Gold's President and CEO, articulates the strong growth prospects that await. With a seasoned team experienced in Peru's mining landscape, Xali Gold aims to overhaul the existing resource estimates and engineering studies while also exploring additional targets for growth. The strategic positioning within the prolific Southern Peru Gold-Silver Belt not only offers immediate opportunities but also calls for further exploration to identify potential additions to the resource base.
The Acquisition Details
The agreement with Pan American Silver Corp. and its subsidiary, Aquiline Resources, reflects a well-structured financial strategy, involving a total investment to secure the project that adds significant value to Xali Gold. The payment schedule consists of milestones that allow Xali Gold to strategically manage its financial commitment while achieving key development goals at the Pico Machay Project.
Geological Context and Exploration Opportunities
Pico Machay was initially discovered in 1997 and has undergone various studies that paved the way for a low-cost open pit heap-leach mining operation. Xali Gold plans to build on this groundwork, reassessing historical data to find opportunities for resource expansion. The surrounding area is peppered with additional prospects, presenting a further avenue for exploration that Xali Gold will pursue aggressively.
Logistics and Accessibility
The Pico Machay Project is conveniently located near established mining hubs, making it logistically viable for development activities. Its proximity to existing mines and infrastructure further enhances the potential viability of the project. The well-established mining district surrounding Santa Ana positions Xali Gold favorably as they mobilize resources and efforts towards development.
Commitment to Responsible Mining
Xali Gold is committed to being a responsible and active partner in the communities surrounding its mining operations. The company recognizes the importance of community engagement and sustainable mining practices, which are critical components of successful resource development.
Frequently Asked Questions
What is the Pico Machay Gold Project?
The Pico Machay Gold Project is a significant high-sulphidation gold deposit located in Central Peru, recently acquired by Xali Gold Corp.
How does this acquisition benefit Xali Gold?
This acquisition enhances Xali Gold's portfolio in a prime mining region with already established resources, providing growth and exploration opportunities.
When did Xali Gold acquire the Pico Machay Project?
The acquisition was formalized through a Share Purchase Agreement, showcasing a strategic move by Xali Gold.
What resources are estimated at Pico Machay?
The project features a historic resource estimate of 264,600 ounces of gold, with potential for updates based on current gold prices.
What is the future plan for Pico Machay?
Xali Gold aims to revamp resource estimates and conduct further exploration to increase production potential and resource accessibility.
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