Xali Gold Corp. has entered a binding LOI to acquire the Sarape silver-gold Project in Mexico from Advanced Lithium Corp., enhancing its portfolio. The project, covering 57 square kilometers in the Rio Sonora Valley, holds extensive gold and silver potential but has only been superficially tested. Xali Gold plans an accelerated exploration program to unlock this potential while confirming its strategic focus on existing projects.
Xali Gold Corp. has signed a binding Letter of Intent (LOI) to option the Sarape silver-gold Project from Advanced Lithium Corp. This acquisition enhances Xali Gold’s portfolio in Mexico, particularly in low-sulphidation epithermal precious metal assets, which possess significant exploration potential in a recognized high-grade mineral district.
The Sarape Project spans 57 square kilometers in the Rio Sonora Valley, known for its proximity to high-profile mines such as First Majestic Silver’s Santa Elena and Premier Gold Mines’ Mercedes Mine. With a notable presence of extensive vein systems containing gold and silver, the project has only been superficially tested, indicating deeper, high-grade mineralization potential yet to be explored.
CEO Joanne Freeze expressed enthusiasm over the acquisition, highlighting Sarape’s potential similarity to SilverCrest’s Las Chispas deposit. She stated, “The transaction provides a significant opportunity for our shareholders as we plan an accelerated exploration program at Sarape.” Allan Barry Laboucan from AALI noted that the partnership complements their existing El Oro project, which boasts a rich history and has proven drilling success.
The Project’s geology is promising, showcasing characteristics of low-sulphidation epithermal deposits. Notably, the Sarape and Chiltepin veins encompass significant mineralization over more than 2,000 meters in length, indicating substantial exploration upside potential at deeper levels.
Xali Gold’s option agreement involves a structured earn-in approach where it can acquire up to a 90% interest in the Sarape Project. This is to be achieved through share issuance, cash payments, and drilling commitments, providing a clear pathway to significant ownership while maintaining strategic partnerships.
Xali Gold also highlighted a focus shift away from the Majo property to prioritize projects with advanced development capabilities. They affirmed commitment to exploration across their properties, particularly in high-sulphidation gold targets in Peru, indicating a strategy poised for long-term growth in gold and silver mining.
Xali Gold Corp. is making strategic moves to enhance its exploration portfolio with the option to acquire the Sarape silver-gold Project. This project promises significant potential due to its location, geological characteristics, and existing infrastructure, aiding in accelerated exploration efforts. Xali Gold’s structured earn-in agreement ensures a practical path for substantial ownership, setting the stage for future growth and development in the precious metals sector.
Original Source: www.globenewswire.com
