Xali Gold Initiates Engineering and Permitting for both Operations and Exploration at Pico Machay Gold Project in Peru

Core Viewpoint - Xali Gold Corp. has initiated engineering studies to update the Feasibility Study for its Pico Machay Gold Project, originally completed in 2009, with a focus on mineral processing and recovery optimization [1][3]. Engineering and Technical Studies - Adam Johnston, an experienced metallurgist, has been engaged to lead the engineering team for the updated Feasibility Study, focusing on mineral processing and metallurgical testing [1][2]. - The updated study will begin with a new Mineral Resource Estimate, followed by revised capital and operational cost estimates, culminating in a Preliminary Economic Assessment (PEA) [3]. - The company is also conducting additional metallurgical testwork to support the Feasibility Study and refine exploration targets for future drilling [3]. Project Development and Resource Estimation - Phase I of the systematic relogging of historical reverse-circulation drill cuttings has been completed, which will enhance the understanding of mineralization controls and support mine planning [4]. - Pico Machay is located in a historically productive mining district in the Southern Peru Epithermal Gold-Silver Belt, benefiting from existing infrastructure and community support [5]. Resource Potential - The Pico Machay project hosts a Historical Measured and Indicated Resource of 264,600 ounces of gold and an additional Historical Inferred Resource of 446,000 ounces of gold, based on historical drilling data [6]. - Previous engineering studies indicated a low-cost open pit heap-leach operation, with significant upside potential given that earlier studies were based on a long-term gold price of $700 per ounce [7].