LAUNCHING A NEW GROWTH STRATEGY - EL ORO, MEXICO - Xali Gold Corp.
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
LAUNCHING A NEW GROWTH STRATEGY
EL ORO, MEXICO
Catalyst for Explosive Growth Potential
8M oz Au Eq Past Production With Potential For Much More
WESTERN MEXICO
Focus on Low Risk, near Surface Production and Exploration
NEWFOUNDLAND, CANADA
Discovery Potential in Close Proximity to Atlantic Canada’s Largest
Undeveloped Gold Resource
August 2021
Disclaimer Material contained in this presentation is provided solely for general knowledge and is not intended to be a comprehensive review of all matters and developments concerning Xali Gold Corp. (‘Xali’) or its affiliates. Xali has taken all reasonable care in producing the information contained in this presentation. This information may contain technical or other inaccuracies, omissions, or typographical errors, for which Xali assumes no responsibility. Xali makes no representation or warranty regarding, and assumes no responsibility for, the use, validity, accuracy, completeness, reliability or currency of any claims, statements or information in this presentation. By attending or reviewing this presentation, you agree that Xali will not be liable for any injuries, losses, expenses or damages arising from the use of or reliance on information contained in this presentation, or any inaccuracy or omission in such information or failure to keep the information current. Information in this presentation is not a substitute for obtaining independent professional advice before making any investment decisions. Information contained in this presentation does not constitute an offer or the solicitation of an offer for the purchase of any securities of Xali. This information is not intended in any way to qualify, modify or supplement any information disclosed under the corporate and securities laws of any jurisdiction applicable to Xali. No securities commission or similar authority in Canada or any other country or jurisdiction has in any way passed on any of the information contained in this presentation and no representation or warranty is made by Xali to that effect. Cautionary Note to U.S. Investors We advise U.S. investors that this presentation uses terms which are not recognized by the United States Securities and Exchange Commission (“SEC”), including “mineral resources”, “measured resources”, “indicated resources” and “inferred resources”. The estimation of measured & indicated resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned not to assume that mineral resources in these categories will be converted to reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. U.S. investors are cautioned not to assume that estimates of inferred mineral resources exist, are economically mineable, or will be upgraded into measured or indicated mineral resources. U.S. investors are cautioned not to assume that mineral resources in any of these categories will be converted into reserves. This presentation also contains information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that SEC mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. www.xaligold.com | XGC:TSX.V 2
Foundation For Growth
FLAGSHIP ASSET EL ORO
8M oz Au Eq Historic Production ❂ Catalyst for explosive growth potential
Drilling to date = stacked system –
❂ An asset deserving of focused attention
Juanicipio look alike
REVENUE BASE WESTERN MEXICO
SDA Plant – Cornerstone of the Western ❂ A solid foundation to underpin the flagship asset,
Mexico Growth Strategy El Oro with both production and exploration
El Oro El Dorado and New Acquisitions ❂ Once established it will allow for 100% of
Acquiring High Grade gold and silver traditional financing dollars to be focused on our
production for SDA Plant and Exploration flagship
Revenue Base Cocula – 70% Profit Share on shallow, ❂ Will provide dry powder for growth during cyclical
high grade & bulk tonnage gold lows
mineralization
SDA / El Dorado Cocula &
El Oro Tailings
DISCOVERY POTENTIAL NEWFOUNDLAND
New Project Evaluations Located just 3km southwest of Marathon ❂ Excellent exploration potential for gold mineralization,
Gold’s Valentine Gold Project, where due to its location within the structurally controlled
mine construction is expected to gold belt as well as high-grade gold discovered in
commence early 2022 glacial till
www.xaligold.com | XGC:TSX.V 3
Growth Strategy - Plan of Action
▸ Western Mexico Revenue and Near Surface Exploration
• Financing of $500,000 to get SDA Plant and first
properties ready for production
• SDA Plant and El Dorado may be funded via Offtake
Agreements
• Reduce Debt
• Funding for Exploration at El Oro
▸ El Oro 3D model in progress with grade contours and
drill pierce points
• Expand and delineate high grades discovered at
Esperanza Mexico Border of San Rafael Vein - #1
Target
• Grades of 10 to 16 g/t gold (“Au”) expected
• Upside Potential - stacked boiling system like
Juanicipio of Mag Silver and many other Low
Suphidation Systems in Mexico
www.xaligold.com | XGC:TSX.V 4
Western Mexico
Growth Strategy
5
SDA Plant
▸ The SDA Plant is one of two cornerstones in the
Western Mexico production platform
▸ Recently operational flotation plant with a Merrill Crowe leach circuit
▸ Ten-year operating history at 100 tpd; expandable to 200 tpd
▸ Located within the rich Sierra Madre Occidental mineralized belt
near the town of Acaponeta, with easy access to regional
infrastructure and transportation routes
▸ Operated from 2007 until April 2017 by
Minerales Vane S.A. de C.V.
▸ Magellan operated the mill in 2019 - processed
a 600 tonne bulk sample for a tolling opportunity
www.xaligold.com | XGC:TSX.V 6
History of Cash Flows
FROM SDA PLANT UNDER VANE MINERALS
2009 2010 2011 2012 2013
Throughput tonnes 27,864 29,134 31,460 32,064 37,200
GOLD $ / oz 967 1,204 1,572 1,669 1,411
SILVER $ / oz 15 19 35 31 24
Grades
Au g/t 3.26 2.08 6.54 6.07 8.26
Ag g/t 375 213 131 121 105
Cash Costs Per Ounce 820 744 $682 / $12.62 $718 / $11.62
Amounts in USD
REVENUES $ 3,533,860 3,968,640 5,885,002 9,128,372 8,936,419
SEGMENT P & L $ 1,118,104 (1,128,491) (16,648) 2,215,698 1,911,773
DEPRECIATION $ 925,389 1,431,205 1,047,118 602,671 215,238
CASH FLOW FROM OPERATIONS $ 2,043,493 302,713 1,030,470 2,818,369 2,127,010
www.xaligold.com | XGC:TSX.V 7
El Dorado Historic Mine
▸ Primary target to provide feed material for the
SDA Plant
▸ Located in the Pacific Coastal Plain, State of
Nayarit, 50 km south of the SDA Plant, with
excellent road and rail infrastructure
▸ 4,950m drilled in 28 holes to 150m depths by
Prospero Silver in 2010-2011; true width
intercepts of:
• 3m @ 49.8 g/t Au Eq
• 11.2m @ 7.8 g/t Au Eq
▸ Veins Exposed on Surface over 1.5 km
▸ Multiple mineralized zones including high-grade
veins potentially minable underground
www.xaligold.com | XGC:TSX.V 8
El Dorado Historical Conceptual Exploration Target
▸ Based on all the existing exploration data and previous historical resource estimates to
date, Xali Gold believes that a Conceptual Exploration Target within 150 m of surface has
potential for:
• 110,000 to 200,000 tonnes of material grading from 4.4 to 9.8 g/t gold and 113 to
239 g/t silver containing between 22,500 and 41,000 oz gold and 500,000 to
1,000,000 oz silver, with secondary credits from lead and zinc.
▸ This in-situ conceptual estimate of the potential tonnes and grade is contained in
unmined portions of the veins as previously delineated. It does not include extensions of
the veins below 150 m nor along strike where the veins have been mapped for 3.5 km
nor additional exploration potential.
The potential quantity and grade described above is conceptual in nature, as there has been insufficient exploration to define
a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
www.xaligold.com | XGC:TSX.V 9
El Dorado 3D View of Veins and Historical Workings
Multiple Veins Accessible
from Common Development
Unmined High Grade
Historical Drilling
Historical Workings
www.xaligold.com | XGC:TSX.V 10Cocula
▸ Cocula - one of two cornerstones in Western
Mexico production platform, targeting near term,
low cost production potential by leaching and/or
flotation
▸ Located in Jalisco State, 70 km SE of Guadalajara
▸ Shallow mineralization
• 54m @ 4.97 g/t Au - trench
• 37.5m @ 1.3 g/t Au including 7.5m @ 5.8 g/t Au in a
vertical drill hole beneath the trench
▸ Higher grades of gold, silver in veins and selvages
to veins up to 50 g/t Au and 700 g/t Ag
www.xaligold.com | XGC:TSX.V 11Cocula Schematic Section
HIGHER GRADES IN VEINS
▸ Gold grades of 12.55 g/t over 0.4
metres in brecciated and silicified vein
with white quartz, iron oxides and
galena crosscutting volcaniclastics*
*43-101 Report for Silver Spruce Resources August 27, 2019
www.xaligold.com | XGC:TSX.V 12Cocula Historical Conceptual Exploration Target ▸ Timmins delineated disseminated gold, silver, lead, zinc and copper mineralization as well as higher grade zones of the same metals near and at-surface, over an 800m length and 54 metre depth. ▸ Based on Timmins work the Company believes Conceptual Exploration Targets show potential for 500,000 to 6,000,000 tonnes grading from 0.5 g/t to 2.75 g/t Au containing between 50,000 and 100,000 oz Au with secondary credits from silver, lead, zinc and copper. ▸ The above is based on exploration to date by Timmins and others and does not include additional exploration potential. ▸ The potential quantity and grade described above is conceptual in nature, as there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource www.xaligold.com | XGC:TSX.V 13
Cocula 3D Section Looking Northwest
40N
Shell Grades
6m @ 7.1 g/t Au 24m @ 5.6 g/t Au
- RC drill hole - trench
Satellite
Mineralization High Grade Oxidized Lenses
Amenable to Leach
Processing
www.xaligold.com | XGC:TSX.V 14Mineral Zoning Cocula Breccia www.xaligold.com | XGC:TSX.V 15
El Oro Gold District, Mexico
8M oz Au Eq
PAST PRODUCTION WITH POTENTIAL FOR MUCH MORE
16El Oro District, Mexico
► 110 km WNW of Mexico City
► 27 claims covering 12,313 hectares
► Excellent access; paved highway to project
► Mining friendly population
► Excellent infrastructure & services
► Power to Site
www.xaligold.com | XGC:TSX.V 17El Oro Gold-Silver Project Highlights One of Mexico’s highest grade historic gold and silver past producers ▸ 8M oz Au Eq Historic Production – from only 2 of more than 50 known veins ▸ Historic production - only 200 metres vertically With Potential for more…. ▸ Au-Ag mineralization extended along strike (northwesterly) and at depth in main veins: San Rafael Vein to 3.5km laterally and to 500m vertically ▸ Northeasterly (Vertical) Controls to High Grades ▸ Potential for discovery of New Veins ▸ 31 New gold-silver targets recently identified within the district ▸ Potential Remnant gold-silver mineralization in Historical Conceptual Exploration Target www.xaligold.com | XGC:TSX.V 18
Geology: El Oro and Tlalpujahua Mining Districts
TLALPUJAHUA MINING DISTRICT
EL ORO MINING DISTRICT
www.xaligold.com | XGC:TSX.V 19Known Veins and Past Production
EL ORO MINING CAMP
20San Rafael Vein: Exploration Potential
Mexico Mine Area Esperanza Mine Area South (El Oro Co.) Mine Area El Carmen Mine
Tiro Descubridora
16.2 g/t Au Eq 12.1 g/t Au Eq 9.3 g/t Au Eq
San Antonio (120E)
Esperanza (60E)
Consuleo (320E)
Mexico (80E)
Chuparrosos
Somera (220W)
Honda (50W)
Lumbrera de
San Antonio
Providencia
Norte (40E)
(90W)
Nolan
Norte
(240E)
SE
Skip
NW
2800 m Elev
2400 m Elev
DEEPER
2000 m Elev EXPLORATION TARGET
Lithology Legend 2010 to 2012 Drill hole Pierce points Historical Production:
Post Mineral Volcanics Anomalous Au and/or Ag 4 Moz Au, 44 Moz Ag
Tuff/Ignimbrite Partial Vein and Old Workings Grading 11.8g/t Au, 127g/t Ag
Meta Shales No Grade
Historical Conceptual Exploration Target (Luismin):
6.0 to 6.9 M tonnes
0 500m
Grading 3.0 to 3.4 gpt Au and 40.0 to 44.0 gpt Ag
w/approx. 580,000 to 760,000 oz Au and 7M to 9M oz Ag
The potential quantity and grade of this figure are conceptual in nature, as there has been insufficient exploration to define a mineral resource and it is unknown if further exploration
will result in the target being delineated as a mineral resource. Ref NI-43-101 Section 2.3 (2).
www.xaligold.com | XGC:TSX.V 21Higher Grades
SW SR10-02A & SR10-002-W1 SR11-001A
2800 m Elev
NE
16.7g/t Au & 32.5g/t Ag over
1.4m
Higher grades found in
12.8g/t Au & 44.0g/t Ag over
0.5m
several veins with
1.0g/t Au & 5.0g/t Ag over
Esperanza
Mining Stope overlying lower grade
75m 2.4g/t Au & 372g/t Ag over
30.7g/t Au & 3.0g/t Ag over 0.5m disseminated gold near
1.9m
2400 m Elev
? 18.1g/t Au & 137.g/t Ag over
0.4m
Mexico-Esperanza Mines
San Rafael
Fault
? border
? 13.7g/t Au & 6.5g/t Ag over
San Rafael vein Projection? 3.0m
Lithology Legend
Disseminated Au & Ag Mineralization
? Post Mineral Volcanics
0 200m Pre Mineral Volcanics
Meta Shales
www.xaligold.com | XGC:TSX.V 22Planned Drilling
Planned drilling will target the
extension of the vein system near
the Mexico-Esperanza Mines border
www.xaligold.com | XGC:TSX.V 23Evidence for Deeper Gold Zones
Best Evidence to Date that San
Rafael is a Stacked Vein System
with Potential for Deeper Gold
Zones as found in other Mexican
Low Sulphidation Systems such
as Juanicipio of Mag Silver
www.xaligold.com | XGC:TSX.V 24Newfoundland
Discovery Potential
25Newfoundland, Canada
► One of the top 10 mining jurisdictions in the
world (Fraser Institute 2021)
QUADRO - ► Newfoundland Advantage:
L ong L ak e
SOKOMAN MIN ERAL S –
Roc k s am ples : 3 3 .6 5 gpt & 8 .6 6 gpt Au
Moos ehead
3 3 .6 gpt Au over 2 4 .9 m
► Long mining history
DEER LAKE
GRAND FALLS ► Existing infrastructure
GANDER
VICTORIA /WINDSOR
► Year-round exploration
N EWFOUN D GOLD –
Queens way
BUCHANS 9 2 .9 gpt Au over 1 9 .0 m
TRU -
MARATHON GOL D –
► Several recent gold discoveries
G olden Ros e
V alent ine L ak e
1 .3 7 gpt Au over 2 6 .3 m
3 .1 Moz Au M&I & 1 .0 Moz Inf
MARV EL DISCOV ERY -
V ic t oria L ak e
MATADOR – G rab s am ples: 1 5 .5 – 2 4 .9 gpt Au ST. JOHN’S
Cape Ray
8 4 0 k oz Au HOPE BROOK
1 .7 Moz at 4 gpt Au
www.xaligold.com | XGC:TSX.V 26Victoria Property Highlights Very Close Proximity (3km) to Marathon Gold’s Valentine Gold Project: ▸ Valentine Gold has Defined (Measured and Indicated) reserves of 3.14M ounces of gold and Inferred resources of 1.00M ounces ▸ Marathon Gold’s mine construction is expected to commence in early 2022, on schedule to build the largest gold mine in Atlantic Canada (there are no assurances that similar results would be obtained on Xali Gold’s Victoria Property) 79 Mineral Claims (1975 hectares) 65km southwest of the historic mining town of Buchans Sitting in strategic mineral belt Potential for Gold and Base metals High grade till samples of 178 gpt, 66.7 gpt and 10.1 gpt gold (Rubicon Minerals in 2003) www.xaligold.com | XGC:TSX.V 27
Victoria Property Geochemistry & Targets
Gold-bearing quartz veins
identified on the Southern
Shore Target
▸ Veins found near two heavy
mineral concentrate samples
with high grades of gold (10.5
& 66.7 gpt gold)
▸ Bedrock samples of the quartz
vein contain up to 0.44 gpt
gold
▸ Gold-bearing quartz veins
occur in altered Granitoid-type
rocks within prolific Valentine
Lake Shear Zone corridor
www.xaligold.com | XGC:TSX.V 28Victoria Property Geology
The gold targets feature similar
mineralization characteristics found
recently in the Valentine Lake Gold
Deposits of Marathon Gold and in
orogenic-gold deposits in general
▸ Southern portion of the property is
underlain by the hangingwall rocks
of the Valentine Lake Shear Zone
▸ Rogerson Lake Conglomerate,
which indicates a favourable
orogenic setting for gold, has been
mapped across Victoria Lake, a
short distance from the property
▸ Granitoid outcrops, hosting gold
anomalies, show structural
preparation, alteration and locally
quartz veining
www.xaligold.com | XGC:TSX.V 29News Flow
Western Mexico
▸ El Dorado: exploration permits have been submitted based on the new 3D model, which identified high-grade
mineralization occurring in multiple parallel veins at a spacing close enough to potentially access several veins through
common development workings
• A minimum of 2000 meters of drilling is planned for Q4 2021/Q1 2022
• A bulk sample is being prepared to be shipped from the historical Hundido Mine to the nearby SDA plant for processing
▸ Cocula: drilling and trenching applications are being prepared
• Drill targets identified in 3D Leapfrog model to test the extension of known mineralization
• Drilling is expected to commence in Q4 2021
El Oro, Mexcio
▸ New gold-silver drill targets identified in 3D Leapfrog model
• Designed to test for undiscovered extensions to the mineralized veins where they are intersected by cross-cutting mineralized
structures
Victoria, Newfoundland
▸ Prospecting, geochemical surveys and ground geophysics expected to commence in Q3 2021 (Exploration Approval
already granted)
www.xaligold.com | XGC:TSX.V 30Management Joanne Freeze, B.A., B.Sc., P.Geo., President, CEO and Director ▸ Professional Geologist (APEG) with over 30 years experience in exploration management predominantly in gold and copper exploration in Canada and South America ▸ Co-Founder of Candente Resource Corp. in 1997. Guided discovery and development of the Cañariaco copper deposit into Feasibility stage. ▸ Lead the acquisition of the El Oro gold project from Goldcorp in 2006 ▸ Split Candente Resource Corp into Candente Copper Corp. and Xali Gold Corp. in 2010 ▸ Raised over $100M to date Matthew Melnyk, B.A., M.Sc., Certified Professional Geologist (CPG), Director Operations ▸ Professional Geologist (AIPG) with 20 years of experience throughout the Americas, Africa and Australia ▸ Identified geochemical anomalies that led to Aquiline Resources acquisition of the Navidad Silver Deposit, Argentina and buyout by Pan American Silver in 2009. ▸ Drill target definition contributed to Aurelian Resources, Fruta del Norte discovery in Ecuador and sale to Kinross in 2008. ▸ Manager of Project Evaluations for Agnico Eagle's Southern Business Unit from 2015-2018 - identified district scale opportunities in Latin America. ▸ Guiding discoveries in structurally complex projects with Silver Bull Resources in Coahuila, Mexico and Titan Mining in USA www.xaligold.com | XGC:TSX.V 31
Management and Directors Mark Lotz, CPA, CA., BBA – CFO and Director ▸ 24 years experience in business, tax and consulting ▸ Formerly CEO and CFO in brokerage industry with senior management experience in mining, manufacturing and digital media sectors. ▸ Strategic tax and business planning and expert for complex contractual issues and financial quantification Larry Kornze, P. Eng., Independent Director ▸ Over 34 years in international gold exploration. ▸ GM Exploration Mexico and Central America and International Evaluations for Barrick Gold Corp. ▸ US Manager for Barrick especially Goldstrike - discoveries at Betze, Meikle, Deepstar, Screamer & Rodeo. Ian Ward, P. Eng., Independent Director ▸ Metallurgist with extensive experience in the processing of gold and base metal ores and industrial minerals ▸ Executive/senior management experience (Kilborn/SNC-Lavalin; Micon International; Kinross) practical plant operating experience, extensive engineering experience and has for the past 19 years been intimately involved in a variety of feasibility studies, audits, operations support and project evaluations www.xaligold.com | XGC:TSX.V 32
Share Structure
Shares Outstanding 121.6 M
Options 10.9 M
▸
Warrants 5.0 M
Fully Diluted 137.5 M
Share structure as of August 26th, 2021
www.xaligold.com | XGC:TSX.V 33www.xaligold.com
XGC:TSX.V
Suite 801 – 1112 West Pender St
Vancouver, BC
Canada V6E 2S1
Email: info@xaligold.com
Telephone: 604-689-1957
Toll Free: 1-877-689-1964
www.xaligold.com | XGC:TSX.V 34You can also read
