The Jeuns

‘Collaboration to Develop El Oro Tailings Project’

May 19, 2024 | by The Jeuns

Kappes, Cassiday & Associates (KCA) has joined forces with Starcore International Mines Ltd. to launch an environmental rehabilitation initiative aimed at cleaning up mine tailings from the Xali Gold Corp.’s Mexican Mine Tailings Reprocessing Project in El Oro, Mexico.

The partnership between Starcore and KCA has led to the formation of a joint venture focused on environmental rehabilitation.

“We are very pleased with the strategy that KCA has brought to our Tailings Reprocessing project. We received the Change of Soil Usage permit almost a year ago, which allows the Tailings to be moved out of the historical deposition site from within the town of El Oro. KCA has now teamed up with Starcore to use their already permitted mine plant site for the Reprocessing, which is expected to significantly shorten the timeline to production,” said Joanne Freeze, President and Chief Executive Officer of Xali Gold Corp.

Recent test work conducted by KCA on the El Oro Tailings Project has shown promising results, with a high potential for 72% gold and 80% silver recovery using a new technique introduced to Xali Gold. This technique produces gold and silver in the form of Dore, ultimately increasing the value of the royalty stream with Xali Gold. While further testing is required to accurately determine gold and silver recoveries, KCA remains optimistic about the technique.

KCA will oversee metallurgical and engineering studies and designs for the Tailings Reprocessing Project, focusing on precious metal recovery. Starcore, on the other hand, will cover construction costs and manage the operation of the facility.

Xali Gold has also entered into a Letter of Intent to Purchase Agreement with KCA for the El Oro Tailings Project. Once production commences on the El Oro Tailings Project, KCA will pay Xali Gold a gross royalty of 4% of all gold and silver produced, with a minimum royalty of 3% guaranteed.

Overall, the collaboration between KCA and Starcore, along with Xali Gold’s commitment to environmental rehabilitation and sustainable mining practices, is a significant step towards the responsible management of mine tailings and the promotion of environmental stewardship in the mining industry.

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