Xali Gold has signed a share purchase agreement (SPA) to acquire Minera Calipuy, the owner of the Pico Machay gold project in Central Peru.
The agreement with Minera Calipuy’s current owners Pan American Silver and its subsidiary, Aquiline Resources covers 100% of their collective interest in Calipuy.
The Pico Machay gold deposit is a high-sulphidation gold deposit situated at the northern end of the Southern Peru epithermal gold-silver belt.
It has a historic measured and indicated resource of 264,600oz of gold, containing 10.6 million tonnes with a grade of 0.78 grams per tonne of gold.
Additionally, it has an historic inferred resource of 446,000oz of gold, spread across 23.9 million tonnes with a grade of 0.58 grams per tonne of gold.
Xali Gold president and CEO Joanne Freeze said: “The Pico Machay acquisition represents a pivotal step for Xali Gold as we expand our presence in one of the world's most prolific epithermal gold-silver countries.
"With a historic resource already in place and various engineering studies conducted since discovery through 2010, the Project offers both immediate value and excellent upside potential.
“Pico Machay is especially compelling given that the original resource was calculated using a long-term gold price of $700/ounce. The current stronger gold price environment provides us with many opportunities to upgrade the project and evaluate additional production alternatives that may not have been supported by lower gold prices."
The Pico Machay gold project was discovered in 1997 and subsequently explored by various junior companies, including Aquiline, until 2009.
During this period, Aquiline conducted various engineering studies, which encompassed resource estimations and metallurgical test work.
Freeze added: “Our focus will be to update the resource estimate and previous engineering studies with a near-term production goal, while also testing exploration targets for potential resource expansion.
"In addition, there are several other known high-sulphidation prospects in the area which we will evaluate for potential acquisition and exploration to enhance/expand production at Pico Machay.”
