New NIA Gold Stock Suggestion: Xali Gold (TSXV: XGC)

Gold is breaking out today, up $28 to $4,082 per oz, and NIA is excited to announce a brand-new gold stock suggestion: Xali Gold (TSXV: XGC), currently trading for $0.24 per share.

Xali Gold (TSXV: XGC) recently acquired the Pico Machay Gold Project in Peru from Pan American Silver (PAAS), a $19 billion market cap company.

The Pico Machay Gold Project is located in a well-established mining district in the eastern part of the Western Cordillera of the Andes. Located within the Santa Ana District (Castrovirreyna Province, Huancavelica Department), Pico Machay sits on the prolific Southern Peru Epithermal Gold–Silver Belt. This is the same trend as J. David Lowell's Pierina discovery, which led to his Arequipa Resources being acquired by Barrick in 1996 for over $1 billion.

Also on the same trend as Pico Machay and Pierina is Newmont's Yanacocha, which was South America's #1 largest-producing gold mine as recently as 2017 and the world's #4 largest-producing gold mine as recently as 2014. Yanacocha is running out of ore, with gold production declining dramatically in recent years.

Peru desperately needs to bring new gold mines into production to save its mining industry, and XGC's Pico Machay is one of Peru's most advanced gold projects that could potentially enter production in the near term!

NIA previously discussed J. David Lowell's Pierina discovery in February 2025 when it suggested Highlander Silver (TSX: HSLV) at $1.40 per share. HSLV had recently acquired the San Luis Project, located directly adjacent to Pierina. Similar to Xali Gold (TSXV: XGC) acquiring Pico Machay from $19 billion market cap Pan American Silver (PAAS), HSLV had acquired San Luis from $5.67 billion market cap SSR Mining (SSRM).

One year after NIA's suggestion of Highlander Silver (TSX: HSLV), NIA's President co-hosted the Hispanic Prosperity Gala at Mar-a-Lago, where he told countless new people about the company… and within weeks, HSLV rose to a new all-time high of $10.50 per share for a gain of 650% from NIA's suggestion price!

After Barrick took Pierina into production, it became the world's #1 lowest-cost gold mine, with cash costs of only $40-$48 per oz during its peak years of 2000 and 2001. Similarly, XGC's Pico Machay is expected to be developed as a low-cost heap-leach mine with a low strip ratio.

In 2009, Aquiline Resources made a formal positive production decision for XGC's newly acquired Pico Machay. Their engineering studies projected Pico Machay to be a low-cost gold producer, and the mine was expected to be highly profitable at only $700 per oz gold. Shortly after this decision, Aquiline Resources was acquired by Pan American Silver (PAAS) for $626 million before it could build the mine.

Pico Machay has historical M&I gold resources of 264,600 oz grading 0.78 g/t and historical inferred gold resources of 446,000 oz grading 0.58 g/t.

The historical resource is contained within a drilled area measuring 800m by 350m but is part of a much larger alteration footprint measuring approximately 4.1km by 1.3km. This means only 5% of the broader system has been tested. Gold anomalies have been identified outside the historical resource area but have not yet been tested.

XGC recently collected 119 surface samples from within the historical resource area and its surrounding exploration targets. 67 of the 119 surface samples returned values of above 0.50 g/t gold!

XGC has identified nine undrilled exploration targets surrounding the known mineralized body. XGC only needs to drill 2,000m to verify the historical resource. The company has laid out 20 drill platforms for the new exploration targets, where it plans to complete 20,000m of future drilling to expand the resource.

Pico Machay is located in a mining-friendly district with low risk of facing any severe social roadblocks that have paused other Peruvian mining projects. In fact, XGC has strong support from the local community. Last month, the company announced an agreement with Comunidad Campesina de Salcca Santa Ana to carry out the drilling, exploration, and environmental studies necessary for the development of Pico Machay.

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA is receiving compensation from XGC of US$75,000 cash for a six-month marketing contract. NIA's President has purchased 125,000 shares of HSLV and can buy or sell shares at any time. This message is for informational and educational purposes only and does not provide investment advice.