VIDEO: Xali Gold Generating Revenue From Multiple Projects To Fund Exploration Drilling
posted on Feb 22, 2023 04:20PM
Generating Revenue From Multiple Projects To Fund Exploration Drilling
Xali Gold is an enviable sweet spot amongst its peers as they succeed in their organic growth strategy. Xali is now receiving income from 2 different projects. This is a rarity for micro-cap exploration companies and it speaks to the strength of management sticking to the plan. Generating. Cash Flow.
Revenue generation marks a fundamental change for any company and very few achieve this type of growth, and almost none of them are junior exploration companies. None of them are Xali.
Xali Gold has assembled a Western Mexico project portfolio of exploitable gold assets, and in doing so developed a strategy for organic growth, creating a revenue stream from 2 separate projects.
They announced the plan, now they are delivering on it.
Xali signed a Binding Letter of Intent with Minera Cinco Reales S.A. de C.V. for a profit sharing agreement on the SDA Plant in Nayarit, Western Mexico. Partnering with a local Mexican mining group provides both the investment and expertise to make the SDA Plant fully operational, as well as the initial gold and silver bearing material to process.
This is a win win for all parties involved and could generate around ~100k a year. In time this adds up substantially and being non dilutive only strengthens Xali's plans for the future.
Xali is putting their assets to work developing cash flow to advance the flagship El Oro Hard Rock Project. Two opportunities for profit sharing to develop El Oro, a prolific high-grade gold-silver epithermal vein system. By acquiring gold and silver projects in western Mexico with near term revenue and exploration potential, Xali is positioning itself to fund it's own growth and chart its own development, free from the expense and dilution of raising capital.
They are very much on track to achieve this as they have also received income from the El Oro Tailing's Reprocessing project. Optioned to Sun River Gold, the agreement calls for advanced NPI ( Net Profit Interest ) payments of US$15,000 per month upon commercial production.
Until that is achieved Xali receives 50K$ a month, then retaining the first 1.5Million from the "NPI". The Mexico Mine Tailings contain an Inferred Resource* of 1,267,400 Tonnes grading 2.94 Au g/t, 75.12 Ag g/t containing 119,900 ounces of gold and 3,061,200 ounces of silver.
The strategy behind all this is due to El Oro. There is tremendous exploration discovery potential. It was one of Mexico's highest grade historic gold and silver producers. It has already demonstrated 8 million Gold Equivalent ounces mined, or 6.4 million ounces of gold and 74 million ounces of silver from just 2 of the known veins on the property. There is ample evidence of more veins and mineralization that has not been exploited, 31 other exploration targets have been identified and management believes they have a " stacked system ", which is a fancy way of saying mineralization on top of mineralization; potentially making future economics very compelling.
This is especially true if its organically derived revenue funding this exploration, a non dilutive event that only strengthens Xali's growth potential for a major discovery. If proven it will elevate Xali into a completely different type of company.
Sit back and enjoy this great interview with CEO Joanne Freeze as she walks us through the strategy and potential upside of exploiting El Oro Gold project with further high grade discoveries.