Xali Gold Signs SPA to Acquire Pico Machay Gold Project in Peru

Xali Gold Secures Acquisition of Pico Machay Gold Project

Xali Gold has signed a share purchase agreement (SPA) to acquire Minera Calipuy, owner of the Pico Machay gold project in Central Peru. The deal gives Xali 100% ownership of Minera Calipuy, previously held by Pan American Silver and its subsidiary Aquiline Resources. The Pico Machay deposit is located in the Southern Peru epithermal gold-silver belt, a prominent mining region.

The project has a historic resource of 264,600 ounces of gold across 10.6 million tonnes with a grade of 0.78 grams per tonne. Additionally, there is an inferred resource of 446,000 ounces across 23.9 million tonnes at a grade of 0.58 grams per tonne.

Xali Gold’s Strategic Vision for Pico Machay

Xali Gold’s president and CEO, Joanne Freeze, sees the acquisition of Pico Machay as a critical step for expansion into one of the world’s top gold regions. With gold prices above historic levels, the company sees significant upside potential. The original resource was estimated when gold was priced at $700/ounce, much lower than today’s prices. This difference offers opportunities to upgrade the project and explore alternative production methods.

The Pico Machay project was discovered in 1997 and explored by several junior companies, including Aquiline Resources. These companies conducted metallurgical tests and resource estimates until 2009, which now form the basis of Xali Gold’s strategy. Freeze also noted that Xali intends to update the resource estimate and engineering studies. The goal is to set near-term production targets and explore nearby high-sulphidation targets for further resource expansion.

SuperMetalPrice Commentary:

Xali Gold’s acquisition of the Pico Machay gold project is a strategic move in Peru’s rich gold belt. The project’s historical resource and upside potential align with the current high gold prices. By updating resource estimates and focusing on near-term production, Xali can benefit from the strong market conditions. Moreover, exploring additional targets nearby could further expand the project’s resource base, ensuring long-term success.