VANCOUVER, British Columbia, Feb. 25, 2021 (GLOBE NEWSWIRE) — Xali Gold Corp. (TSXV:XGC) (“Xali Gold” and/or the “Company”) is pleased to advise that new drill targets have been delineated on the El Dorado Gold-Silver Project, located in Nayarit State, Mexico through the development of a new 3D geological model. The new model indicates high grade mineralization occurring in multiple parallel veins such that future mining could focus on several veins at once to potentially allow reduced mining costs. Drilling is planned to test potential lateral extensions to the high grade zone.
Permitting applications are in progress for the drilling which are expected to take 3 to 4 months to receive. Permit applications are also being prepared for the reopening of the historical Hundida Mine and should take 6 to 10 months to receive. Mineralization is planned to be shipped from this area to the nearby SDA plant under acquisition from Magellan Acquisitions.
The El Dorado vein system has a history of small-scale mining from two veins in the Hundido and El Dorado mines (see News Release April 28, 2020) but four veins with parallel high-grade zones have been delineated in the new model. Additionally, several vein targets have been identified along trend for follow-up exploration.
Prospero Silver Corp. (“Prospero”) explored the El Dorado property between 2010 and 2011. Their drilling intersected multiple steeply-dipping silicified mineralized zones extending from near-surface to the 180 metre (“m”) drilled depth and over a strike length of 440m. Prospero intersected grades ranging from 3 to 40 grams per tonne (“gpt”) gold and 57 to 500 gpt silver over true widths ranging from 0.52 to 11.2 m. (http://www.candentegold.com/i/maps/sedardoc4391012.pdf)
Significant results reported by Prospero on Dec 10, 2010 included:
- 16.17m grading 4.03 g/t gold, 204 g/t silver, 4.0% lead, and 1.75% zinc; and 2.32m grading 6.04 g/t gold and 140 g/t silver in hole DOR-10-11. (http://www.candentegold.com/i/maps/Prospero-NR–December-10,-2010.pdf)
Mineralization in the Hundido historical mine area was reported to range from 1.45 to 11.22m (true widths) and given economics at the time (1900 to 1983) grades mined are assumed to have exceeded 10 gpt gold. Drill intersections near the edges of the mined areas show grades of 49.8 gpt gold over 3m; 13.9 gpt gold over 1.45m and 8.6 over 2.3m.
The following longitudinal section by Prospero shows the drilling pattern along the El Dorado vein in the area of the Hundido and El Dorado mines, along with summary drill hole intersection grades and widths. (Prospero News Release dated June 22, 2011)
Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e1a3e9b9-6147-4d84-ae1c-8500920174a7
The Hundido and El Dorado mines occur within The El Dorado vein trend which extends over a strike length of 3.5 km with widths exceeding tens of meters containing numerous parallel veins and vein breccias. In addition, high level silicification and argillic alteration on surface indicate depth potential to the mineralizing system. For these reasons, exploration potential outside of the area of historical mining and Prospero’s drilling is believed to be excellent. (“Magellan Gold Corporation, Form 10-K Annual Report US SEC dated Dec 31, 2018, File No. 333-174287”) http://www.candentegold.com/s/eldorado.asp?ReportID=878118).
Both the north-easterly striking as well as east-west striking splits of the main structure exhibit structural complexity and potential for multi-meter wide precious metal mineralization. Anomalous base metal assays (100’s to 1000’s of parts per million lead, zinc and copper) are ubiquitous as evidenced by the common occurrence of visible galena, sphalerite and chalcopyrite in outcrop and dumps.
The El Dorado Gold-Silver Project is located in the Pacific Coastal Plain, State of Nayarit, 50 km south of the SDA Plant, which Xali Gold has an option to purchase from Magellan Acquisition Corp., 70 km north-northwest of Tepic, the state capital, and 180 km southeast of Mazatlan, Sinaloa. The project has excellent road and rail infrastructure.
The Company’s Qualified Persons have not verified Prospero’s drill results as due to COVID travel restrictions, they have not yet been able to examine the drill core nor assay data and are therefore relying on data provided in News Releases filed on Sedar by Prospero in 2010 and 2011 and verified by their Qualified Persons and on examinations of the data by Company Geologists already based in Mexico.
Terms of the Agreement
Xali Gold has the right to assume the rights and obligations of a Lease Agreement between Magellan Acquisitions and Ingenieros Mineros, S.A. de C.V. (“IMSA”). The Lease Agreement allows Xali Gold to explore and mine from the El Dorado property while IMSA retains a negotiable NSR of 3.5% and make payments of $25,000 in 2021.
About Xali Gold
Xali Gold has launched a comprehensive growth strategy to build a cash flowing business platform and gain access to properties with near surface exploration potential while maintaining El Oro as its flagship asset and an integral part of the overall growth strategy. The acquisition of the SDA Plant, the El Dorado historic mines and the Cocula Project signify important initial steps.
The financial benefits from Western Mexico operations and the addition of specialized personnel will translate across platforms to strengthen the Company’s efforts to explore and potentially mine areas demonstrated to contain mineralization of value. The Company is currently evaluating other properties that are complementary to the SDA plant, El Dorado and the Cocula Project.
El Oro is a district scale gold project encompassing a well-known prolific high-grade gold dominant 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 epithermal vein systems indicates that several of the El Oro district’s veins hold excellent discovery potential, particularly below and adjacent to the historic workings of the San Rafael Vein, which was mined to an average depth of only 200 metres.
Joanne C. Freeze, P.Geo., President, CEO and Director and Matthew Melnyk, CPG., Director Operations and Director are Qualified Persons as defined by National Instrument 43-101 for the projects discussed above, however, they have not been able to visit the El Dorado or Cocula Projects nor the SDA Plant recently due to COVID virus travel restrictions. The work discussed in the News Release is either historical and documented by public records or conducted by Mexican professionals with qualifications similar to those of QP’s registered in Canada. Ms. Freeze and Mr. Melnyk have reviewed and approved the contents of this release.
Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Xali Gold is dedicated to being a responsible Community partner.
Forward-looking Information
This news release may contain forward-looking information (as such term is defined under Canadian securities laws) including but not limited to information regarding references to historical resource estimates, the potential for discovery on the El Dorado Property and in the El Oro district 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:
Joanne Freeze
President & CEO
Tel: + 1 (604) 689-1957
[email protected]
Original Article: https://www.globenewswire.com/news-release/2021/02/25/2182411/0/en/Xali-Gold-Delineates-Drilling-Targets-at-El-Dorado.html
