Xali Gold uncovers higher grade gold mineralization at Pico Machay, Peru

Xali Gold Corp. [TSXV: XGC] report first assay results from the recently completed underground and surface channel and rock chip sampling program at its Pico Machay Gold Project in Central Peru.

Channel Assay Highlights: 2.22 g/t gold over 45.1 metres from Underground (UG) Channel 1, including 4.17 g/t Au over 20.0m; 1.49 g/t Au over 41.1m from UG Channel 3 NS, including 3.44 g/t Au over 8.0m; 4.41 g/t Au over 13.7m from UG Channel 3 EW, including 6.45 g/t Au over 6.5m; and 2.28 g/t Au over 40.0m from Surface Channel 2.

To date, the company has received assay results for approximately 25% of the samples collected during the Program, with the remaining results expected in the coming weeks. The program included both systematic channel sampling within previously unsampled underground workings and surface rock chip sampling across areas within the resource area of Pico Machay. Assay and ICP results have been received for 51 of 197 samples collected to date.

The samples are comprised of 78 underground channel samples and 119 surface samples, collected to support the Company’s efforts to validate, update and potentially upgrade the historical mineral resource estimate at Pico Machay.

“We are very encouraged by these initial results,” stated Joanne Freeze, President and CEO of Xali Gold. “While channel sampling differs from drilling, the systematic nature of the Program and the ability to sample continuously across recently exposed mineralized zones provide valuable insight into the grade variation and continuity of mineralization at Pico Machay.

“The results received to date further strengthen our confidence in the Project and we look forward to completing the Resource Update and PEA (Preliminary Economic Assessment).”

Underground sampling was completed in three horizontal channels extending over 15 to 46 m lengths over north-south or east-west orientations and some smaller workings. The two north-south channels are 150 m apart and the east-west channel connects to the southern end of UG Channel 3 NW. Continuous channel samples were collected from the eastern walls over 2 to 4-metre intervals. These underground samples provide grades and other data over extensive lengths not previously sampled. The nature of the channels makes them similar to a horizontal drill hole. Refer to original company press release for complete assays.

Located within the Southern Peru Epithermal Gold-Silver Belt, Pico Machay sits in a historically productive mining district in the Western Cordillera Andes. The project benefits from existing infrastructure and a mining-friendly community eager to partner on sustainable development.

Xali Gold remains confident in the significant upside potential at Pico Machay, which hosts a historical resource and several untested targets on the Project. Various historical engineering studies at Pico Machay were also completed and targeted an open-pit heap-leach operation, which was expected to be low-cost and with a low strip ratio.

Given that those studies were based on a long-term gold price of US$700/oz and several exploration targets remain untested, Xali Gold considers the upside potential to be very strong.

Xali Gold is focused on the exploration and development of Pico Machay, an advanced exploration-stage gold project in Peru with a near-term production goal. Xali Gold maintains exploration potential as well as two royalty agreements with third parties who have the rights to produce gold and silver from specific areas of the El Oro gold-silver project in Mexico, a historic district-scale precious metal system with a long history of significant gold and silver production.