Xali Gold Acquires Pico Machay Gold Project
Xali Gold Corp. (TSXV: XGC) has revealed exciting news regarding its expansion efforts. The company has successfully entered into a Share Purchase Agreement (SPA) for the acquisition of Minera Calipuy S.A.C, which wholly owns the Pico Machay Gold Project located in Central Peru. This strategic move is part of Xali Gold's vision to solidify its presence in Peru, a country well-known for its rich mineral resources.
Details of the Pico Machay Gold Project
Pico Machay is recognized as a high-sulphidation gold deposit situated in the prolific Southern Peru Epithermal Gold-Silver Belt. Notably, it boasts a Historic Measured and Indicated Resource of approximately 264,600 ounces of gold, derived from about 10.6 million tonnes with a grade of 0.78 grams per tonne. Additionally, there exists an Inferred Resource of about 446,000 ounces distributed over 23.9 million tonnes.
Company Insights and Future Plans
Joanne Freeze, President and CEO of Xali Gold, expressed her enthusiasm for the acquisition: "The Pico Machay acquisition represents a pivotal step for Xali Gold as we expand our presence in one of the world's most prolific epithermal gold-silver countries. With a historic resource already in place and various engineering studies conducted, the Project offers both immediate value and excellent upside potential." She emphasized the importance of updating the resource estimate and previous studies with a focus on near-term production goals.
Exploration and Operational Advantages
The historical resource was originally calculated using a long-term gold price of $700/oz, which highlights the significant potential for project enhancement today given the current higher gold prices. Xali Gold plans to not only evaluate the current project but also explore neighboring high-sulphidation prospects that could be beneficial for future acquisitions and further resource expansion.
Geological and Logistical Overview
Pico Machay was initially discovered in 1997. Several junior mining companies, including Aquiline Resources, have conducted previous explorations and engineering studies targeting a low-cost open pit heap-leach operation. Situated within an established mining region of the Western Cordillera Andes, it is conveniently located near key logistical routes, increasing its operational viability.
Historic Resource Overview
The project holds a Historic Resource Low Estimate that includes categories such as Measured, Indicated, and Inferred as outlined in Table 1. These resource estimates point to the considerable potential Pico Machay carries, yet the company remains cautious, acknowledging that all figures signify historical estimates requiring further exploration and validation.
Technical Framework and Agreement Conditions
All technical information regarding the project has been meticulously reviewed by qualified professionals, including David G. Thomas and Joanne C. Freeze. The potential for upward revision of the historical estimates is a central focus, and Xali Gold will work towards validating these to classify them under current standards. Financially, the terms of the SPA detail a series of payments culminating in an aggregate of $17.5 million, contingent upon performance metrics, including the delineation of additional resources.
Final Remarks and Community Commitment
Xali Gold is committed to being a responsible stakeholder within the communities where it operates. As the company takes this significant step forward in its journey, it reaffirms its dedication to local partnerships and sustainable practices while aiming to unlock the full potential of the Pico Machay Gold Project.
Frequently Asked Questions
What is the Pico Machay Gold Project?
The Pico Machay Gold Project is a high-sulphidation gold deposit located in Central Peru, acquired by Xali Gold Corp.
What are the historical resources at Pico Machay?
The project has a Historic Measured and Indicated Resource of approximately 264,600 ounces of gold and an Inferred Resource of about 446,000 ounces.
Who is leading Xali Gold?
Joanne Freeze serves as the President and CEO of Xali Gold, actively overseeing the company's strategic initiatives.
How does the acquisition affect Xali Gold's future?
This acquisition marks a significant opportunity for resource expansion and potential growth in production for Xali Gold.
What is Xali Gold's commitment to the community?
Xali Gold is dedicated to fostering positive relationships with local communities and incorporating responsible practices in its operations.
