The 57 square km Sarape Project is located in the Rio Sonora Valley of northern Mexico, a proven gold-silver mining district that includes First Majestic Silver's Santa Elena Mine, Premier Gold Mines' Mercedes Mine and SilverCrest Metal's Las Chispas Mine, which was recently purchased by Coeur Mining for C$2.4B.

The Sarape Project contains extensive gold and silver bearing vein systems with evidence that only high (i.e. shallow) levels of the system are present near the surface.  These systems have not been tested at depths where boiling zones are expected to have precipitated high-grade gold and silver mineralization.  The Project is located roughly 20km northeast of Las Chispas Mine and Xali Gold recognizes the Project's immense potential and plans to leverage our expertise in epithermal gold systems to unlock its full value. 

Highlights:

Prime Location:  Situated in a prolific mining district, in close proximity to major producing mines

Extensive Mineralization: The Sarape and Chiltepin veins, both delineated over more than 2km in length and up to 17m in true width, exhibit significant gold, silver, and antimony mineralization at what are believed to be high levels in their systems.

Favourable Geology: The Project displays characteristics of low-sulphidation epithermal deposits, with promising geological features including breccia zones, banded quartz-calcite veining, bladed quartz textures and elevated antimony levels.

Evidence of Mineralization at Depth:  Breccia fragments contain sulfide rims and fine visible gold indicating that mineralization is associated with deeper levels of the system.

Significant Exploration Potential:  The shallow-level characteristics displayed within extensive vein systems and multiple exploration targets at Sarape offer significant upside potential for the discovery of boiling zones at depth.

Strong Infrastructure: The Project benefits from existing area infrastructure, including roads and power, facilitating future development.