The Majo Project is located in a known gold and silver high sulphidation epithermal belt in South-Central Peru where several major companies including Teck, Sumitomo, Fresnillo, Rio Tinto and Pan American Silver hold significant land packages and various deposits have been delineated including Corihuarmi, Pico Machay, Breapampa, Minasnioc, San Genaro, Ccarhuaraso and Palla Palla.

Previous work has identified anomalous levels of gold and silver across an area extending over 1.0 km in length and 0.5 km in width, associated with Miocene-Pliocene magmatic activity and NW-SE structural controls.   Host rocks are part of a package of Oligocene and Pliocene volcanic rocks similar to those hosting the Yanacocha, Alto Chicama, Pierina, Poracota, Arasi and Aruntani deposits (see Location Map).

Rock chip samples contain anomalous levels of gold ranging from 0.1 to 7.7 grams per tonne (“gpt”) in hydrothermally altered rocks with vuggy silica, massive silica, silica - alunite alterations and hydrothermal breccias in outcrops within the gold-silver anomalous zone.  No trenching or pitting has been conducted to date to explore areas where bedrock is hidden by alluvial cover.

Drill targets have been identified by third parties and some Environmental and Social Impact Assessment (“ESIA”) work has been conducted towards drill permits. Xali Gold will conduct their own fieldwork to better refine drill targets already identified and potentially find additional targets.