Xali Gold to Acquire Pico Machay Gold Project in Peru

Core Viewpoint - Xali Gold Corp. has entered into a Share Purchase Agreement to acquire Minera Calipuy S.A.C, which owns the Pico Machay Gold Project in Central Peru, from Pan American Silver Corp. and its subsidiary Aquiline Resources Inc. [1] Acquisition Details - The acquisition is a strategic move for Xali Gold to enhance its presence in a prolific gold-silver region, with the Pico Machay project already having a historic resource in place [3] - The Share Purchase Agreement includes cash payments totaling $17.5 million over five years, with an initial payment of $0.5 million at closing [14][16] Resource Information - Pico Machay has a Historic Measured and Indicated Resource of 264,600 ounces of gold from 10.6 million tonnes at a grade of 0.78 grams per tonne, and an additional Inferred Resource of 446,000 ounces from 23.9 million tonnes at a grade of 0.58 grams per tonne [2][8] - The original resource estimate was based on a long-term gold price of $700 per ounce, which presents significant upside potential given the current higher gold price environment [3][4] Geological and Logistical Context - The project is located within the Southern Peru Epithermal Gold-Silver Belt, known for hosting world-class gold deposits, and is in proximity to several operational mines [5][6] - Pico Machay is situated 35 km southwest of Huancavelica, a well-established mining area with good logistical access [7] Future Plans - Xali Gold aims to update the resource estimate and previous engineering studies with a near-term production goal, while also exploring additional targets for potential resource expansion [3][4]