Xali Gold Provides Update on El Oro Projects in Mexico
Xali investigates tailings theft at its cancelled El Oro project while shifting exploration focus to new drilling initiatives in Peru.
Xali Gold Corp. issued an operational and strategic update on September 16, 2026, confirming a pivot toward its Pico Machay Gold Project in Peru while actively discussing the potential sale of its El Oro hard-rock interests in Mexico. The company is considering a significant reduction in the size of its El Oro property position to lower associated mineral rights fees.
Administrative and legal challenges persist at El Oro, where the Mexican Mines Bureau (MMB) cancelled two additional hard-rock claims without the legally required 60-day notice. This follows nine previous cancellations earlier in 2025. Legal counsel advises pursuing judicial review (Amparo), though two of the cancelled claims were peripheral and will not be challenged. Additionally, an investigation is underway regarding the unauthorized removal of tailings material from the El Oro Tailings Project site by a third party claiming to be Minera CCM. The company cannot yet confirm the quantity, characteristics, or impact on the historical estimate.
Under the Remedioambiente agreement, the partner holds rights to recover gold and silver from historic workings above 2,400 masl, paying a 3% NSR. Xali retains 100% of exploration upside below that depth. Remedioambiente plans underground rehabilitation that could grant Xali access to drill higher-grade targets. Meanwhile, Kappes, Cassiday & Associates (KCA) is finalizing a definitive agreement to acquire Xali's Mexican subsidiary to manage legal matters and municipality negotiations.
Xali Gold Corp. (XGC) announced a strategic shift to prioritize the Pico Machay project, aligning with management’s stated multi-year roadmap and prior capital allocation. The company also reported administrative claim cancellations and an investigation into tailings theft, operational frictions typical of Mexican mining jurisdictions that currently lack quantified financial impact.
The tailings theft investigation introduces an unquantified risk to the El Oro tailings resource estimate. Until KCA and advisors confirm the volume and grade of removed material, the impact on the 1.27M tonne historical tailings resource remains speculative.
Xali Gold Corp. is expected to pursue potential asset sales and property reductions for El Oro as corporate development steps to monetize or shed underperforming assets. This does not materially alter the core valuation drivers, which are now concentrated on Pico Machay's upcoming drilling program and Preliminary Economic Assessment (PEA).
The release serves as a status update on existing initiatives rather than a market-moving catalyst, with no new financial results, earnings, or definitive resource upgrades disclosed.
Xali Gold Corp. (XGC) is a pre-revenue exploration company focused on advancing the Pico Machay Gold Project in Peru and managing the El Oro Gold-Silver Project in Mexico.
Pico Machay is an advanced-exploration-stage high-sulphidation epithermal gold deposit located in the Southern Peru Epithermal Gold-Silver Belt. The project holds a historical resource of 264,600 oz Measured & Indicated and 446,000 oz Inferred, for a total of approximately 710,000 oz Au. Previous engineering studies by Aquiline Resources targeted a low-cost, open-pit heap-leach operation based on a $700/oz gold price. Xali aims to update the resource, complete a preliminary economic assessment (PEA), and advance toward near-term production.
El Oro is a past-producing district with historic production of approximately 8 million oz AuEq. The company has structured royalty agreements with KCA for tailings and Remedioambiente for hardrock to monetize the asset while reducing direct operational exposure.