March 3, 2025 – TSX-V: AALI | OTC: ADGCF
Advance Lithium Enters Option With Xali Gold For Its Sarape Project
Located Within Rio Sonora Valley, Mexico
Vancouver, British Columbia – Advance Lithium is pleased to announce it has entered into a binding Letter of Intent (“LOI”) to option the Sarape silver-gold Project (“Sarape” or the “Project”), in Northern Mexico to Xali Gold Corp. This strategic move enables Advance to have its Sarape project drilled while also being exposed to the exploration potential of Xali Gold’s Mexican portfolio of high-level, low-sulphidation epithermal precious metal assets, offering considerable exploration potential in two proven high-grade silver and gold districts.
The 57 square kilometer Sarape Project is located in the Rio Sonora Valley of northern Mexico, an emerging gold-silver mining district that includes First Majestic Silver’s Santa Elena Mine, Premier Gold Mines’ Mercedes Mine and SilverCrest Metal’s Las Chispas Mine (recently purchased by Coeur Mining for C$2.4 billion). The Project contains extensive gold and silver bearing vein systems with evidence that only high (shallow) levels of the system are present near the surface. These systems have not been tested at depths where boiling zones are expected to have precipitated high-grade gold and silver mineralization. The Project is located roughly 20 km northeast of the Las Chispas Mine and Xali Gold recognizes the Project’s immense potential and plans to leverage their expertise in epithermal gold systems to unlock its full value.
“We are excited about the acquisition of the Sarape Project, which has potential to be very similar to SilverCrest’s Las Chispas deposit and other robust deposits in Mexico and offers asymmetric upside potential for the discovery of silver and gold mineralization at depth,” stated Joanne Freeze, CEO of Xali Gold. “This transaction provides a significant opportunity for our shareholders as we plan an accelerated exploration program at Sarape while underground work at El Oro advances to get us better access for drilling there.”
Allan Barry Laboucan, CEO and President of AALI, said, “I am pleased to enter this option deal with Xali Gold, as they have a talented team and a great gold exploration project at El Oro that will complement the Sarape project well. Both are low-sulphidation epithermal vein systems. El Oro has a rich history, with past production of 8M ounces of gold-silver, averaging grades of 9 to 16 g/t gold equivalent and a drill proven stacked boiling system. Meanwhile, Sarape has an expansive 57 square kilometer land package just north of the spectacular Las Chispas Mine, which SilverCrest Metals brought into production a few years ago. Due to its high-grade silver-gold mineralization and low mining costs, Las Chispas recently attracted a C$2.4 billion takeover. Las Chispas has a cluster of low-sulphidation epithermal veins within a northwest striking corridor that extends to the northern border of their claims. Next door on the Sarape property, there are two key veins (one 5,000 metres in strike, and the other 2,000 metres) with widespread gold and silver mineralization that have only been tested with 6 drill holes into the veins. If Xali Gold completes the 90% earn-in at Sarape, our shareholders will own approximately 50% of El Oro through shares in Xali Gold, as well as a direct 10% interest at Sarape. With drill targets ready, I’m very keen to see drilling at Sarape get underway as soon as permits can be obtained.”
Sarape Project Highlights:
- Prime Location: Situated in a prolific mining district, in close proximity to major producing mines including SilverCrest’s Las Chispas Mine and First Majestic’s Ermitano Mine. ● Extensive Mineralization: The Sarape and Chiltepin veins, both delineated over more than 2,000 meters (“m”) in length and up to 17m in true width, exhibit significant gold, silver, and antimony mineralization at what are believed to be high levels in their systems. ● Favorable Geology: The Project displays characteristics of low-sulphidation epithermal deposits, with promising geological features including breccia zones, banded quartz-calcite veining, bladed quartz textures and elevated antimony levels.
- Evidence of Mineralization at Depth: Breccia fragments contain sulfide rims and fine visible gold indicating that mineralization is associated with deeper levels of the system. ● Significant Exploration Potential: The shallow-level characteristics displayed within extensive vein systems and multiple exploration targets at Sarape offer significant upside potential for the discovery of boiling zones at depth. ● Strong Infrastructure: The Project benefits from existing area infrastructure, including roads and power, facilitating future development.
Additional information about the Sarape Project can be found on the AALI website at: http://advancelithiumcorp.com/sarape-project/ and on the Xali Gold website athttps://xaligold.com/projects/mexico/projects/overview .
As part of the option agreement, Xali Gold gains access to an additional skilled team and valuable technical knowledge that will be instrumental in the development and operation of the Sarape Project.
LOI Terms:
The LOI gives Xali Gold the right to earn 90% interest in the Sarape Project by:
1) Issuing 1,000,000 shares to AALI on signing a Definitive Agreement;
2) Paying a total of CDN$450,000 in cash payments to AALI in stages upon closing financings to fund drilling at Sarape; not to exceed 10% of each financing;
3) Partial earn-in of 51% interest in Sarape once Xali Gold has completed 10,000m of drilling by issuing 26.6M shares (19% of shares outstanding on date of signing)
4) Second earn-in of 70% interest in Sarape by completing an additional 5,000m of drilling and issuing an additional 21M shares (15% of shares outstanding), and the full CDN$450,000 has been paid;
5) A final interest of 90% in Sarape upon completing an additional 5,000m of drilling (cumulative total of 20,000m) and an additional 91.4M shares are issued (total of 140M, which is 50% of shares outstanding on date of signing;
6) All shares issued to AALI are subject to sale limitations and may be distributed to AALI shareholders when issued.
Xali Gold anticipates the timing for the earn-in of the 90% interest to be between 12-18 months post regulatory approval. The Project is subject to a 1.5% Net Smelter Return, with no current buyout option. All transactions are subject to applicable stock exchange approvals, third party consents and shareholder approvals for each of AALI and XGC, as may be required.
A Definitive Agreement will replace the LOI.
Joanne C. Freeze, P.Geo., President and CEO of Xali Gold is the Qualified Person as defined by National Instrument 43-101 for the projects discussed above. Ms. Freeze has reviewed and approved the contents of this release. Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
About Advance Lithium Corp.
Advance Lithium is a junior exploration company focused on acquiring and exploring mineral properties containing precious metals, battery metals and fertilizer minerals. The company acquired a 100-per-cent interest in the Tabasquena silver mine in Zacatecas, Mexico, in 2017, and the Venaditas project, also in Zacatecas state, in April, 2018.
In March, 2021 Advance Gold acquired 13 salars in central Mexico containing potassium, boron and lithium, enabling it to move into agricultural minerals and the exciting lithium space.
In June, 2022 Advance Lithium sold its 3% Royalty interest in strategic claims in the Liranda Corridor in Kenya, East Africa, where Shanta Gold Limited is upgrading their resource. The company received from the sale of the Kenya royalty to Orogen Royalties US$120,000 and the Sarape epithermal gold project in Mexico.
For further information, please contact: Allan Barry Laboucan,
President and CEO
Mexico Cellular Phone: 492-238-5282 Email: allan@advancelithiumcorp.com
This news release contains certain statements that may be deemed “forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors should change, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.