Xali Gold Pauses FTA Application Temporarily for Drilling at Pico Machay
Xali’s Pico Machay drilling programme is delayed into December due to a FTA pause, though the overall timeline remains intact.
Xali Gold Corp. (XGC) has temporarily paused its Ficha Técnica Ambiental (FTA) application for drilling at the Pico Machay Gold Project in Peru to compile additional historical data requested by the Ministry of Energy and Mines (MINEM). The company expects to resume drilling before December 2026.
The resource confirmation program is estimated to take approximately six weeks using two diamond drill rigs operated by GEMA. CEO Joanne Freeze confirmed that the additional data will be useful for future permitting and reiterated the December drilling target. The company continues to advance other permitting work to minimize overall delays to the planned drill program.
Xali Gold Corp. (XGC) confirmed that the pause on its Free Trade Agreement (FTA) application is a standard administrative step within Peru's regulatory framework, rather than an indication of a fundamental project issue or technical setback. The announcement verified the selection of drilling contractor GEMA, outlining an operational timeline to complete drilling before December. The program scope involves two rigs operating for a six-week duration.
The news is incremental and aligns with the company's stated permitting strategy. It does not introduce new financial obligations, technical surprises, or changes to the development path. The impact on the stock price is expected to be minimal, as the market already priced in the permitting timeline and the company's proactive management of regulatory requests.
Xali Gold Corp. (XGC) is an advanced exploration-stage gold company focused on the Pico Machay Gold Project in the Southern Peru Epithermal Gold-Silver Belt. The company acquired the project from Pan American Silver and Aquiline Resources in December 2025 for up to $17.5 million in deferred and contingent payments.
The project hosts a historical resource of 264,600 ounces of gold (Measured and Indicated) and 446,000 ounces of gold (Inferred), based on a long-term gold price of $700/oz. The immediate strategic goal is to verify historical data through diamond drilling, update the mineral resource estimate, and advance a Preliminary Economic Assessment (PEA) to evaluate a low-cost, open-pit heap-leach operation.
The company is also managing the El Oro project in Mexico, but has shifted strategic focus to Pico Machay due to administrative challenges and claim cancellations in Mexico.