Mining roundup: Xali Gold, GoGold Resources, Guanajuato Silver

Xali Gold 

Vancouver-based Xali Gold signed a binding letter of intent to option the Sarape silver-gold project in northern Mexico from Advanced Lithium (AALI).

"This strategic move bolsters Xali Gold's Mexican portfolio of high-level, low sulfidation epithermal precious metal assets, offering considerable exploration potential in a proven high-grade silver and gold district," a press release said.

The 57km2 Sarape project is located in the Rio Sonora valley, an emerging gold-silver mining district that includes First Majestic Silver's Santa Elena mine, Premier Gold Mines' Mercedes and SilverCrest Metals' Las Chispas.

According to Xali Gold, the project contains extensive gold and silver bearing vein systems with evidence that only high (shallow) system levels are present near the surface. "These systems have not been tested at depths where boiling zones are expected to have precipitated high-grade gold and silver mineralization."

Xali Gold CEO Joanne Freeze said, "this transaction provides a significant opportunity for our shareholders as we plan an accelerated exploration program at Sarape while underground work at El Oro advances to get us better access for drilling there."

AALI CEO Allan Barry Laboucan said, "I am pleased to enter this option deal with Xali Gold, as they have a talented team and a great gold exploration project at El Oro that will complement the Sarape project well."

GoGold Resources

GoGold Resources filed a feasibility study technical report (FS) for its Los Ricos South project in Mexico's Jalisco state. 

The FS includes a re-engineered 2,000t/d underground mine plan compared to the preliminary economic assessment from September 2023 and incorporates an updated mineral resource estimate.  

Highlights of the FS, with a silver price of US$26.80/oz, gold price of US$2,330/oz and copper price of US$4.00/lb (base case) are as follows: 

• after-tax net present value (NPV) (using a discount rate of 5%) of US$355mn with an after-tax IRR of 28% (base case); 

• at approximate spot metal silver price of US$30/oz and gold price of US$2,608/oz, NPV (using discount rate of 5%) of US$469mn with after-tax IRR of 34%; 

• 15-year mine life producing a total of 80Moz silver equivalent, consisting of 41Moz silver, 424,000oz gold and 11Mlb copper; 

• initial capital costs of US$227mn, including US$21mn in contingency costs, over an expected two-year build, and sustaining capital costs of US$100mn over the life of mine;

• average operating cash costs of US$9.94/oz silver equivalent, and all in sustaining costs (AISC) of US$11.19/oz silver equivalent over first five years of production, with average AISC of US$12.32/oz silver equivalent over the underground mine life; 

• average annual production of 7.3Moz silver equivalent over first five years. 

"Now the company finds itself in the position once our permit is in hand, to build our first mine in the Los Ricos district. This will be potentially followed by our second mine in Los Ricos North," CEO Brad Langille said.  

"We also look forward to exploring more of the exciting exploration potential in the district," he added. 

Guanajuato Silver

Guanajuato Silver updated development and exploration progress at its wholly-owned San Ignacio mine in Guanajuato state.

The company completed development of the high-grade Santo Nino vein at the San Ignacio mine, which identified significant grades. "The Santo Nino vein offers the company access to an entirely new mining area with comparatively higher gold content," the miner said in a statement.

"We have identified a greater than 2m wide mining block at Santo Nino consisting of significant tonnage and grade. Further exploration potential west of this new production area is highly prospective and will remain at the forefront of our exploration campaigns throughout 2025," CEO James Anderson said. 

This year, exploration will focus on infill drilling in the Melladito North area, deeper extensions to the Nombre de Dios veins, and evaluating additional veins to the west of Santo Nino, supported by geophysics and geological surface mapping.