Khali Gold Company (TSXV: XGC) First test results report from the recently completed surface, subsurface and rock chip channel sampling program at the Pico Machay Gold Project in central Peru.
Channel Assay Highlights: 2.22 g/t gold at a depth of 45.1 meters from Channel 1 Underground (UG), including 4.17 g/t gold at a depth of 20.0 metres; 1.49 g/t Au over 41.1m from the UG 3 NS channel, including 3.44 g/t Au over 8.0m; 4.41 g/t Au over 13.7m from the UG 3 EW channel, including 6.45 g/t Au over 6.5m; and 2.28 g/t Au over 40.0 m of surface channel 2.
So far, the company has received test results for approximately 25% of the samples collected during the program, and the remaining results are expected to appear in the coming weeks. The program included regular sampling of channels within previously unsampled underground workings and sampling of surface rock chips across areas within the Biko Machai Resource Area. Screening and ICP results have been received for 51 of the 197 samples collected to date.
The samples consist of 78 underground channel samples and 119 surface samples, collected to support the Company’s efforts to validate, update and potentially upgrade historical mineral resource estimates at Biko Machai.
“We are very encouraged by these initial results,” said Joan Freese, President and CEO of Xali Gold. “Although channel sampling is different from drilling, the systematic nature of the program and the ability to sample continuously across areas of recently exposed mineralization provides valuable insight into the grade variation and continuity of mineralization at Biko Machai.
“The results received to date reinforce our confidence in the project and we look forward to completing the resource upgrade and preliminary economic assessment.”
Underground sampling was completed in three horizontal channels extending 15 to 46 meters in length on north-south or east-west directions and some smaller workings. The northern and southern channels are 150 meters apart from each other, and the eastern and western channels connect to the southern end of UG Channel No. 3 northwest. Continuous channel samples were collected from the eastern walls at intervals of 2 to 4 metres. These underground samples provide grades and other data over wide intervals that have not been previously sampled. The nature of the channels makes them similar to a horizontal drilling hole. Refer to the company’s original press release for complete checks.
Pico Machay is located within the thermal gold and silver belt of southern Peru, in a historically productive mining area in the Western Andean Cordillera Mountains. The project benefits from existing infrastructure and a mining-friendly community keen to partner in sustainable development.
Xali Gold remains confident of the significant upside potential at Pico Machay, which hosts a historic resource and several untested targets in the project. Several historical engineering studies were also completed at Biko Machai and targeted the open pit filtration process, which was expected to be low cost and with a low strip ratio.
Given that these studies were based on a long-term gold price of US$700 per ounce and that many of the exploration targets are yet to be tested, Xali Gold considers the upside potential to be very strong.
Xali Gold is focused on the exploration and development of Pico Machay, an advanced exploration-stage gold project in Peru with a near-term production target. Xali Gold maintains exploration capabilities as well as two royalty agreements with third parties that have the rights to produce gold and silver from specific areas of the El Oro gold and silver project in Mexico, a historic, region-wide precious metals system with a long history of significant gold and silver production.
