08:56 AM EDT, 10/24/2024 (MT Newswires) -- Xali Gold ( CGDXF ) said Thursday that Kappes, Cassiday and Associates (KCA) has made a payment of US$100,000, meeting the terms of the purchase agreement on the Mexican Mine Tailings Reprocessing Project at El Oro.

"We are very pleased with the progress that KCA has made to date on the El Oro Tailings Project and that they are committed to getting the reprocessing project into production," said Joanne Freeze, CEO.

KCA has the right to process and sell all gold and silver recovered from the tailings in return for a gross royalty of 3 to 4% to Xali Gold ( CGDXF ) and a 8% net profits interest to the municipality of El Oro. KCA expects to be in production within 12 to 18 months. It will make minimum royalty payments of US$50,000 to Xali Gold ( CGDXF ) every six months before production starts.

The tailings are estimated to contain 1.27 million tonnes at a grade of 2.94 grams per tonne gold and 75.12 gpt silver (3.85 gpt gold equivalent) containing 119,900 ounces of gold and 3.1 million ounces of silver. KCA's work to date indicates a minimum recovery of 75% of the contained gold and silver.