Xali Gold Corp. (TSXV: XGC) reported July 28, 2026 that all 11 underground workings sampled at its Pico Machay Gold Project in Central Peru expose gold mineralization and alteration characteristic of a high-sulphidation epithermal system — the first time the historical resource area has been systematically sampled from underground.

The mineralized footprint extends approximately 1.35 kilometres in a northeast-southwest direction along the main structural trend and approximately 825 metres in a northwest-southeast direction, per the company's July 28, 2026 news release on GlobeNewswire.

67 of 119 surface samples returned more than 0.50 g/t gold. Surface Channel 1 returned 2.92 g/t Au over 31.5 metres, including 13.76 g/t Au over 4.5 metres, per the same release.

UG Channel 1 returned 2.22 g/t Au over 45.1 metres, including 4.17 g/t Au over 20.0 metres. UG Channel 3 NS returned 1.49 g/t Au over 41.1 metres, including 3.44 g/t Au over 8.0 metres. UG Channel 3 EW returned 4.41 g/t Au over 13.7 metres, including 6.45 g/t Au over 6.5 metres, per the company's July 28, 2026 news release on GlobeNewswire.

The alteration assemblage — vuggy silica and advanced argillic alteration — is consistent with the high-sulphidation epithermal classification the company cites. Pico Machay sits within the northern extent of the Southern Peru Epithermal Gold-Silver Belt and carries a Historic Measured and Indicated Resource of 264,600 ounces of gold (10.6 million tonnes grading 0.78 g/t gold) and a Historic Inferred Resource of 446,000 ounces of gold (23.9 million tonnes grading 0.58 g/t gold), per the company's July 28, 2026 news release on GlobeNewswire.

"These results continue to build our confidence in Pico Machay," stated Joanne Freeze, President and CEO of Xali Gold.

The program is not complete. Assay results reported July 28 cover approximately 25% of the 197 samples collected; remaining results are expected in coming weeks, per the company's release. The company states the systematic underground sampling supports preparation of an updated resource estimate and Preliminary Economic Assessment for Pico Machay — both still pending.

On the balance sheet, context is limited. Xali Gold closed a non-brokered private placement on June 23, 2026 raising gross proceeds of C$1,000,000. The company's December 2025 end cash position was reported at USD $38.29K; the current cash position is not publicly confirmed. XGC traded at C$0.220 as of July 28, 2026, per Investing.com, against a market cap of CA$40.10 million and 160.39 million shares outstanding as of July 1, 2026, per Morningstar.

Gold futures provide a backdrop: August gold opened at $4,083 per troy ounce on July 28, up 0.1% from Monday's close, before moving to $4,027 per troy ounce as of 7:24 a.m. ET, per Yahoo Finance. The S&P/TSX Venture Composite opened at 898.91 and last printed at 905.98 on July 28, per Investing.com.

What's materially next: the remaining roughly 75% of assay results from the 197-sample program, followed by work toward an updated resource estimate and PEA. The subsequent assay releases will determine whether the grades and widths seen in the first-tranche channels hold across the broader footprint.