Xali Gold Corp. has entered into a binding LOI to option the Sarape silver-gold Project from Advanced Lithium Corp. The project is located in the Rio Sonora Valley, near major mines. It consists of significant mineralization potential and will enhance Xali Gold’s exploration efforts in precious metals while providing a pathway for increased shareholder value via structured earn-in provisions.
Xali Gold Corp. has announced the signing of a binding Letter of Intent (LOI) with Advanced Lithium Corp. to option the Sarape silver-gold Project in Northern Mexico. The project spans 57 square kilometers and is situated in a promising mining district, enhancing Xali Gold’s portfolio of precious metal assets. The Sarape Project exhibits significant exploration potential for high-grade silver and gold deposits near existing productive mines.
Located within the Rio Sonora Valley, the Sarape Project is adjacent to notable operations like SilverCrest’s Las Chispas Mine and First Majestic Silver’s Santa Elena Mine. Initial assessments reveal extensive mineralization and potential for high-grade resources at depth, as the project has only been partially drilled. Xali Gold aims to apply its expertise in epithermal systems to explore this opportunity comprehensively.
Joanne Freeze, CEO of Xali Gold, expressed enthusiasm about the Sarape acquisition, highlighting its potential similarities to SilverCrest’s Las Chispas deposit and the extraordinary opportunities it presents for shareholders. Allan Barry Laboucan, CEO of Advanced Lithium Corp., also praised the collaboration, noting the substantial prospects for gold and silver both at Sarape and the neighboring El Oro project.
The LOI outlines specific terms for Xali Gold to earn a 90% interest in the Sarape Project through staged cash payments and the issuance of shares to Advanced Lithium Corp. This strategic option agreement includes completing a total of 20,000 meters of drilling to confirm mineralization at depth. Xali Gold is expecting to finalize the transaction within 12 to 18 months after obtaining necessary regulatory approvals.
Future developments on the Sarape Project will benefit from the area’s existing infrastructure, including roads and power. In conjunction with this acquisition, Xali Gold has opted not to proceed with the Majo property and is refocusing efforts on more advanced targets to maximize shareholder value. The company continues to explore additional high-sulfidation gold targets in Peru while enhancing its presence in Mexico’s mining sector.
Xali Gold Corp.’s option to acquire the Sarape Project marks a significant advancement in its strategic exploration initiatives in Mexico. The project holds substantial untapped potential for high-grade silver and gold mineralization, leveraging its proximity to major mining operations. With a detailed plan for earn-in stages and regulatory approvals, Xali Gold is poised to enhance its position within the mining industry, ultimately driving shareholder value and exploration capabilities in the region.
Original Source: www.globenewswire.com
