Xali Gold Acquires Victoria Property in Central Newfoundland
VANCOUVER, British Columbia, July 14, 2021 (GLOBE NEWSWIRE) — Xali Gold Corp. (TSXV:XGC) (“Xali Gold” and/or the “Company”) is pleased to announce that the Company has entered into an option agreement to acquire 100% interest in the Victoria Property in the Central Region of Newfoundland and Labrador, named as one of the top 10 mining jurisdictions in the world (Fraser Institute 2021).
“While we are still very committed to and enthusiastic about our gold projects in Mexico, we couldn’t pass up the opportunity to acquire such an exciting gold exploration play in Newfoundland where recent exploration successes have already defined two new gold deposits and several discoveries,” stated Joanne Freeze, President and CEO of Xali Gold. “Our team has spent various years working in Newfoundland in the past and we are very excited to be back, especially with a project in such close proximity to Atlantic Canada’s largest undeveloped gold resource.”
Xali Gold’s new Victoria Property is located just 3 kilometres (“km”) southwest of Marathon’s Valentine Gold Project (“Marathon”), within a structurally controlled gold belt of Central Newfoundland, an emerging significant exploration jurisdiction in Canada. The new gold district occurs within a northeast-trending structural corridor defined by crustal-scale faults extending from southwestern to north-central Newfoundland. Marathon has defined (Measured and Indicated) reserves of 3.14 million ounces (“Moz”) gold and Inferred resources of 1.00 Moz (https://marathon-gold.com/valentine-gold-project/). Marathon’s mine construction is expected to commence in early 2022, on schedule to build the largest gold mine in Atlantic Canada. *There are no assurances that similar results would be obtained on Xali Gold’s Victoria Property.
The Victoria Property, comprising 79 claims covering 1975 hectares, is also situated 65km southwest of the historic mining town of Buchans where mining was continuous for 57 years starting in 1905. From 1928 to 1984, ASARCO mined approximately 16 million tonnes from five high grade orebodies, with an average mill head grade of 14.51% zinc, 7.56% lead, 1.33% copper, 126 g/t silver and 1.37 g/t gold.
Xali Gold’s new Victoria Property demonstrates excellent exploration potential for gold mineralization, due to its location within the structurally controlled gold belt as well as distinctive magnetic-geophysical anomalies identified and high grade gold discovered in glacial till samples on the property. The high grade gold intervals reaching 178 grams per tonne (“gpt”), 66.7 gpt and 10.1 gpt were discovered by Rubicon Minerals Corporation in 2003. There are no records of the gold bearing samples being followed up nor of systematic exploration being performed on the property, although some exploration for base metals was conducted. Exploration was likely hampered by the lack of ground access which required helicopter support, however, several quad trails have now opened up access on the property.
An exploration permit application was submitted to the Newfoundland government on June 30 and the permit is expected to be issued prior to early September 2021 when field work is planned to commence.
Terms of the Agreement
Xali Gold has entered into an Option Agreement (“Agreement”) which provides for the following:
Acquire 100% interest, subject to a 2% Net Smelter Royalty* (“NSR”) by:
- Issuing a total of 3.5 million (“M”) shares over 3 years
- Making payments of a total of CDN $100,000 over 3 years
- Funding exploration activities of CDN $650,000 over 3 years
*Xali Gold has the right to buyback 1% of the NSR for CDN $1M at any time.
Of the above, the following is a firm commitment:
- Payment of CDN $25,000
- Issue 500,000 common shares
- Funding exploration activities of CDN $50,000 within one year
About Xali Gold
Xali Gold has launched a comprehensive growth strategy to acquire gold and silver projects with near surface exploration potential, near-term production potential and previous mining histories. Xali Gold plans to advance our growing bank of Mexican assets internally and/or with industry partners.
The acquisition of the SDA Plant, suitable for treating high grade gold and silver mineralization, along with the acquisition of rights to the El Dorado gold and silver historic mines was the initial step in this strategy.
The profit-sharing agreement on the potentially leachable Cocula Gold Project was the second step and is a key component of our asset base. In addition to the potential for in expensive extraction processes such as leaching, it has excellent near surface exploration potential.
The Company is currently evaluating other properties complementary to the SDA plant and El Dorado or stand alone such as the Cocula Gold Project.
El Oro, remains as our flagship asset, as it is a district scale gold project encompassing a well-known prolific high-grade gold-silver epithermal vein system in Mexico. The project covers 20 veins with past production and more than 57 veins in total, from which approximately 6.4 million ounces of gold and 74 million ounces of silver were reported to have been produced from just two of these veins (Ref. Mexico Geological Service Bulletin No. 37, Mining of the El Oro and Tlapujahua Districts. 1920, T. Flores*). Modern understanding of such systems indicates that several of the El Oro district’s veins hold excellent discovery potential.
Xali Gold is dedicated to being a responsible Community partner.
Joanne C. Freeze, P.Geo., President, CEO and Matthew Melnyk, CPG., Director Operations, are Qualified Persons as defined by National Instrument 43-101 for the projects discussed above. Ms. Freeze and Mr. Melnyk have reviewed and approved the contents of this release.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking information (as such term is defined under Canadian securities laws) including but not limited to the potential for discovery on the El Dorado, Cocula and El Oro Properties and other statements that are not historical facts. While such forward-looking information is expressed by Xali Gold in good faith and believed by Xali Gold to have a reasonable basis, they address future events and conditions and are therefore subject to inherent risks and uncertainties including those set out in Xali Gold’s MD&A. Factors that cause the actual results to differ materially from those in forward-looking information include, without limitation, gold prices, results of exploration and development activities, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, potential environmental issues, availability of capital and financing and general economic, market or business conditions. Xali Gold expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
On behalf of the Board of Xali Gold Corp.
“Joanne Freeze” P.Geo.
President, CEO and Director
For further information please contact:
President & CEO
Tel: + 1 (604) 689-1957