Xali Gold begins engineering studies for Pico Machay

Executive Summary

• Xali Gold Corp. has initiated engineering studies and permitting processes for its Pico Machay gold project in Peru, specifically aiming to update the 2009 feasibility study.
• The company has engaged Transmin Metallurgical Consultants to oversee mineral processing and metallurgical testing, marking a key step toward a Preliminary Economic Assessment (PEA).
• Phase 1 of the systematic relogging of historical drill cuttings and assay review is complete, allowing for the refinement of the geological model and mine planning.

Key Details

• Engineering & Permitting: Commenced engineering studies to update the feasibility study originally completed in 2009.
• Technical Advisor Engagement: Adam Johnston (FAusIMM, CP) of Transmin Metallurgical Consultants engaged to assemble the engineering team and oversee mineral processing, metallurgical testing, and recovery optimization.
• Strategic Timeline: Initiating studies allows for the commencement of the EIA-d (detailed environmental impact assessment), which typically requires 12 to 24 months for permitting in Peru.
• Upcoming Deliverables: Work will begin with an updated mineral resource estimate, followed by revised capital/operational cost estimates and economic analysis for a Preliminary Economic Assessment (PEA).
• Exploration Strategy: Additional metallurgical testwork will support the feasibility study; exploration targets for drilling will be refined once permits are secured.
• Historical Data Review: Phase 1 of systematic relogging of historical reverse circulation (RC) drill cuttings is complete. This included documenting lithologies, alteration, mineralization, and a detailed review of all assays and interpretations.
• Historical Resource Data:
  • Measured and Indicated: 264,600 ounces of gold (10.6 million tonnes grading 0.78 g/t Au).
  • Inferred: 446,000 ounces of gold (23.9 million tonnes grading 0.58 g/t Au).
  • Data Source: 154 RC holes drilled prior to 2009 in a central zone; nine additional high-potential exploration targets remain untested.
• Technical Reports: Historical resource information is based on reports by David G. Thomas, PGeo (Dec 16, 2025) and Caracle Creek International Consulting Inc. (Nov 25, 2009). Estimates follow CIM Standards.
• Project Context: Pico Machay is located in the southern Peru epithermal gold-silver belt. Historical studies targeted an open-pit heap-leach operation based on a $700/oz gold price.

Notable Quotes

• "Work will begin with an updated mineral resource estimate followed by revised capital and operational cost estimates and economic analysis based on long-term gold and silver prices to be presented in a preliminary economic assessment," stated Joanne Freeze, president and chief executive officer of Xali Gold.
• "Initiating these studies at this stage allows the company to commence the EIA-d (detailed environmental impact assessment), which is the longest lead-time component for permitting any mining operation in Peru, typically requiring 12 to 24 months."
• "With Adam's assistance, we are assembling an experienced Peruvian engineering and operations team to support the efficient advancement and derisking of the project to bring Pico Machay into production in a timely and responsible manner."