Xali Gold (TSX-V:XGC) is discussing a potential sale of its El Oro hard-rock interests in Mexico as delays shift its priority towards the Pico Machay Gold Project in Peru.
The company is also considering reducing its El Oro landholding to lower mineral rights fees.
Xali says the Mexican Mines Bureau has cancelled two more hard-rock claims without providing the legally required 60-day notice directly to the company. This brings the total reported cancellations to 11.
Its Mexican legal counsel has advised that the cancellations may be challenged through judicial review. Xali says it does not intend to contest the cancellation of two large peripheral claims, which accounted for 76.28% of El Oro’s mineral rights fees in 2025.
Under a separate agreement, Remedioambiente can recover gold and silver from historical mine workings on five concessions above 2,400m elevation, with Xali entitled to a 3% net smelter returns royalty. Three of those concessions are among the cancelled claims.
Remedioambiente has proposed underground rehabilitation at the northern end of the San Rafael vein. If completed, the work could provide access for drilling beneath the former workings.
Meanwhile, Xali is investigating whether another party removed material from the El Oro Tailings Project. It is working with Kappes, Cassiday & Associates, and advisers to establish what occurred. The company cannot yet confirm the quantity or characteristics of any material removed, or the implications for the project.
The update follows preparations for a 3,000m drilling program at Pico Machay to support an updated resource estimate, as previously reported by Mining.com.au. In August, Xali targeted a late-September start, subject to approvals and final preparations.
Xali Gold is a Canadian-listed gold and silver explorer focused on projects in the Americas.
Write to France Pinzon at Mining.com.au
Images: Xali Gold
