Xali Gold Resumes Exploration Program in Central Peru

Xali Gold Corp. has said that it has begun exploration work in Peru once more, having optioned Alpha Mining S.A.C. for the Majo Project, which is situated in South-Central Peru.

Figure 1. Majo Project Location with Oligocene-Pliocene Epithermal Belt of Peru. Image Credit: Xali Gold Corp.

We are thrilled to be in the position to renew our focus on exploration within a proven high sulphidation epithermal belt in South-Central Peru. Our team's extensive experience in this area, coupled with such promising historical exploration results from the Majo Project, are the perfect opportunity to develop the untapped potential of the belt. With our Mexican assets progressing well in the hands of capable partners, we are eager to apply our expertise to advance the Majo Project and unlock its potential.

Matthew Melnyk, Director and Structural Geologist, Xali Gold Corp.

The Majo Project is situated in a known gold and silver high sulphidation epithermal belt in South-Central Peru, where numerous large corporations hold significant land packages, including Teck, Sumitomo, Fresnillo, Rio Tinto, and Pan American Silver. Numerous deposits, including Corihuarmi, Pico Machay, Breapampa, Minasnioc, San Genaro, Ccarhuaraso, and Palla Palla, have been identified.

A region of more than 1.0 km in length and 0.5 km in breadth has seen unusual levels of gold and silver in the past; these levels have been linked to Miocene-Pliocene magmatic activity and NW-SE structural restrictions. The Oligocene and Pliocene volcanic rocks that comprise the host rocks are identical to those that house the deposits of Yanacocha, Alto Chicama, Pierina, Poracota, Arasi, and Aruntani.

In hydrothermally altered rocks with vuggy silica, massive silica, silica - alunite changes, and hydrothermal breccias in outcrops within the gold-silver anomalous zone, rock chip samples exhibit anomalous quantities of gold ranging from 0.1 to 7.7 grams per tonne (“gpt”). To date, no trenching or pitting has been done to investigate regions where alluvial cover conceals bedrock.

Outside companies have identified drill targets, and some Environmental and Social Impact Assessment ("ESIA") work has been done to obtain drill licenses, even though the land has never been drilled. Xali Gold will carry out independent fieldwork to improve upon previously selected drill targets or perhaps uncover new ones.

In order to get a 100 % stake in the Majo Project, Xali Gold and Alpha have signed a legally-binding Memorandum of Understanding ("MOU") with the following conditions:

• Pay all Annual Mining Fees commencing with those due in June 2024 (paid);
• 2) Issue 50,000 shares in Xali Gold on signing the Definitive Agreement;
• 3) Issue 100,000 shares within 30 days of receiving the first drilling permit;
• 4) Pay $50,000 cash upon the closing of financing by Xali Gold for the drill program (minimum financing of $1,000,000);
• 5) Execute a drill program of a minimum of 3,000 meters;
• 6) Deliver $100,000 in cash or shares 12 months after receiving drilling permits;
• 7) Deliver $150,000 in cash or shares 24 months after receiving drilling permits;
• 8) Deliver $200,000 in cash or shares 36 months after receiving drilling permits; and
• 9) Grant a 1.5 % net smelter return to Alpha, with a buyout option of $1.5 M in cash or Shares

The MOU will be replaced by a Definitive Agreement.