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The Majo Project is situated within a well-known high-sulfidation epithermal gold-silver belt in south-central Peru, a region hosting major mining companies such as Teck, Rio Tinto, and Pan American Silver. Xali Gold Corp. has restarted its exploration activities in Peru by entering into an agreement for the Majo Project with Alpha Minería S.A.C. (“Alpha”).

“We are thrilled to renew our exploration focus within a proven geological setting, such as the high-sulfidation epithermal belt in south-central Peru. Our team’s extensive experience in the region, combined with the promising historical exploration results from the Majo Project, provides an excellent opportunity to unlock the untapped potential of this belt,” stated Matthew Melnyk, Director of Xali Gold.

He added, “We are eager to leverage our expertise to advance the Majo Project and fully realize its potential.”

The Majo Project lies within a renowned high-sulfidation epithermal gold-silver belt in south-central Peru, home to leading mining companies, including Teck, Sumitomo, Fresnillo, Rio Tinto, and Pan American Silver. This region hosts significant deposits such as Corihuarmi, Pico Machay, Breapampa, Minasnioc, San Genaro, Ccarhuaraso, and Palla Palla.

Historical exploration has identified anomalous gold and silver values across an area measuring approximately 1.0 km in length and 0.5 km in width. These anomalies are associated with Miocene-Pliocene magmatic activity and controlled by NW-SE structural trends.

The host rocks belong to an Oligocene-Pliocene volcanic sequence similar to those hosting world-class deposits such as Yanacocha, Alto Chicama, Pierina, Poracota, Arasi, and Aruntani.

Rock chip samples from the project area have returned gold values ranging from 0.1 to 7.7 grams per tonne (g/t) within hydrothermally altered rocks. These include vuggy silica, massive silica, silica-alunite alteration, and hydrothermal breccias, observed in outcrops across the gold-silver mineralization zone.

To date, no trenching or pitting has been conducted in areas where bedrock is obscured by alluvial cover. Although the property has never been drilled, third parties have identified preliminary drill targets, and some Environmental and Social Impact Assessment (ESIA) work has been carried out to obtain the necessary drilling permits.

Xali Gold plans to undertake its own fieldwork to refine existing drill targets and potentially identify new ones.

Details of the Agreement

Xali Gold and Alpha Minería S.A.C. have entered into a binding Memorandum of Understanding (MOU) that outlines the following terms for acquiring a 100% interest in the Majo Project:

  • Cover all Annual Mining Fees, starting with those due in June 2024 (already paid).
  • Issue 50,000 Xali Gold shares upon signing the Definitive Agreement.
  • Issue 100,000 shares within 30 days of obtaining the first drilling permit.
  • Pay $50,000 in cash upon the completion of a financing round by Xali Gold for the drilling program (minimum financing: $1,000,000).
  • Execute a drilling program totaling a minimum of 3,000 meters.
  • Deliver $100,000 in cash or shares 12 months after obtaining drilling permits.
  • Deliver $150,000 in cash or shares 24 months after obtaining drilling permits.
  • Deliver $200,000 in cash or shares 36 months after obtaining drilling permits.
  • Grant a 1.5% Net Smelter Return (NSR) royalty to Alpha, with an option for Xali Gold to purchase the royalty for $1.5 million in cash or shares.
  • The MOU will be replaced by a Definitive Agreement.

More Information

To learn more about the mining sector in Peru and other countries, consider attending the EXPOMINA 2024 conference. Registration is free at the following link: EXPOMINA 2024 Registration.