Xali Gold Corp. Signs LOI to Acquire Sarape Silver-Gold Project in Mexico

Xali Gold Corp. has entered a binding LOI to acquire the Sarape silver-gold Project from Advanced Lithium Corp. in Mexico’s Rio Sonora Valley. Covering 57 square kilometers, the Project holds extensive gold and silver vein systems, with significant exploration potential. The acquisition aligns with Xali Gold’s strategy of enhancing its portfolio in low-sulphidation epithermal precious metal assets.

Xali Gold Corp. (TSXV:XGC) has announced its entry into a binding Letter of Intent (LOI) to acquire the Sarape silver-gold Project from Advanced Lithium Corp. (AALI). This acquisition is part of Xali Gold’s strategy to enhance its portfolio of precious metal assets in Mexico, as the Sarape Project is situated in the promising Rio Sonora Valley, known for its high-grade silver and gold deposits.

Covering 57 square kilometers, the Sarape Project hosts extensive vein systems containing silver and gold. Preliminary findings suggest that these mineralized systems are primarily present at shallow levels, with deeper zones yet to be explored. The wealth of potential, especially given its proximity to established mining operations like SilverCrest’s Las Chispas Mine, positions Sarape to be a significant asset for Xali Gold.

CEO Joanne Freeze expressed enthusiasm over the acquisition, likening Sarape’s potential to that of notable deposits within Mexico. She stated, “We are excited about the acquisition of the Sarape Project… provides a significant opportunity for our shareholders as we plan an accelerated exploration program.” This reiterates the project’s potential for high returns through exploration efforts.

Allan Barry Laboucan, CEO of Advanced Lithium, also highlighted the mutual benefits of the deal, emphasizing that Xali Gold has a capable team well-suited to advance the Sarape Project. He noted the importance of the geological similarities between Sarape and their El Oro project, another low-sulphidation epithermal vein system.

The Sarape Project features promising mineralization, advantageous geology, and strategic location. Highlights include high-grade mineralization at shallow levels, extensive vein systems offering significant upside potential, and existing infrastructure that could expedite development. The project is anticipated to offer considerable exploration potential, making it a highly favorable investment for Xali Gold.

Under the LOI terms, Xali Gold can earn up to a 90% interest in Sarape through share issuances and cash payments upon meeting specific milestones, particularly in conducting drilling activities. The progress towards the acquisition is expected to be completed within 12-18 months, dependent on regulatory approvals.

Xali Gold Corp.’s strategic acquisition of the Sarape silver-gold Project underscores its commitment to expanding its presence in Mexico’s valuable mining sector. The potential of the Sarape Project, combined with Xali Gold’s expertise in epithermal systems, positions the Company well for future exploration and development opportunities. The completion and regulatory approval of the LOI will pave the way for a significant exploration phase within the next 12-18 months.

Original Source: www.globenewswire.com