VANCOUVER, British Columbia — Xali Gold Corp. has successfully concluded its due diligence site visits at the Pico Machay Gold Project in central Peru, confirming the high quality and integrity of historical work on the property. The company is acquiring the project through a Share Purchase Agreement with Pan American Silver Corp. and its subsidiary, Aquiline Resources Inc., as announced on October 24, 2025.
Due Diligence Confirms Project Integrity
Xali Gold conducted three separate site visits between June and November 2025, providing strong confidence in the historical work performed by previous operators. The visits included the company's technical team, management, and Qualified Person David Thomas of DKT Geosolutions, along with representatives for local investors.
David Thomas verified the historic geological model, confirmed the accuracy of drill collar locations, and validated the reliability of historic drilling assays through independent check sampling. This thorough verification process confirms the dataset's integrity, supporting the preparation of an updated National Instrument 43-101 report required by the TSX Venture Exchange for the acquisition.
Major Exploration Upside Revealed
The due diligence process revealed a significant surprise: the alteration footprint at Pico Machay is substantially more extensive than previously understood, spanning approximately 4.1 kilometers by 1.3 kilometers (533 hectares). This discovery highlights substantial exploration potential, as the surficial expression of the current resource occupies only about 800 meters by 350 meters (28 hectares) – representing just 5% of the broader altered-mineralized system.
Joanne Freeze, President and CEO of Xali Gold, emphasized the project's immediate value potential, noting that "the original resource was based on a long-term gold price of only US$700 per ounce." She added that "the extensive undrilled areas within this large alteration system provide exceptional opportunity for both resource expansion and new discoveries."
Comprehensive Sampling Validates Historical Data
During the October 2025 site visit, DKT Geosolutions conducted comprehensive due diligence that included examining surface outcrops, collecting GPS coordinates for drill collar locations, and gathering 26 samples (9 surface samples and 17 pulp and coarse reject samples). The team also conducted a thorough review of RC chip samples stored in Lima, Peru.
The new rock chip samples collected at Pico Machay reinforce the strength of the system, confirming both higher-grade and lower-grade gold and silver values. Validation of drill collar positions and check assays from pulp and coarse reject material confirm strong assay reliability. The overall dataset shows excellent integrity – sufficiently accurate and robust to support an updated mineral resource estimate, which is now well underway and expected to be completed in the coming months.
Video highlights from the latest Pico Machay site visit are now available, providing additional visual context of the project's potential.
