04:32 PM EDT, 10/28/2025 (MT Newswires) -- Xali Gold ( CGDXF ) after trade Tuesday said it plans to advance the Pico Machay Gold Project in central Peru.

The project is being acquired through a share purchase agreement (SPA) with Pan American Silver ( PAAS ) and its subsidiary Aquiline Resources.

Xali said it is planning to begin fieldwork by advancing exploration targets in preparation for drilling. It also intends to launch a bulk sampling program to confirm grades from earlier drilling and to better understand the higher-grade zones.

Additional metallurgical testing will be conducted to confirm and possibly improve gold recovery rates, the company said, adding that all of this work can proceed without the need for new permits, allowing Xali to continue advancing the project while applying for surface drilling approvals.

"With the current gold prices, our priority is to move Pico Machay forward aggressively," Chief Executive Joanne Freeze said, adding that over the next six months, the company plans to update the historic resource using current long-term gold prices and review previous engineering studies.

"Previous owners of Pico Machay outlined a low-cost, low-strip ratio open pit heap-leach operation. Xali Gold ( CGDXF ) will work to update these studies to re-estimate the project's current economic potential with a goal to move quickly and cost-effectively toward our goal of near-term production," he said.

Xali's shares last traded Oct.22, closing at $0.035 on TSX Venture Exchange.