The El Oro Hard Rock Project in Mexico remains our flagship asset as it is a district scale gold project encompassing a well-known prolific high-grade gold-silver epithermal vein system. 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 such systems indicates that several of the El Oro district's veins hold excellent discovery potential.

Xali Gold has entered an agreement with Remedioambiente S.A. de C.V. on portions of five mining concessions within the El Oro Mining District.  They have the exclusive right to explore and extract gold and silver above the 2400 metre level in the historic mine workings, in exchange for a 3% Net Smelter Return.  Xali Gold retains the exclusive ownership of all mineral bodies that may be discovered or delineated below the 2400 metre level.

Kappes, Cassiday and Associates ("KCA") has an agreement on the El Oro Tailings Project in Mexico. KCA has the right to process and sell all gold and silver recovered from the Tailings in return for a gross royalty of 3 to 4% to Xali Gold as well as an 8% Net Profits Interest to the municipality of El Oro.  Latest test work indicates excellent potentail for 75% recovery of the gold and silver.