Xtra-Gold Acquires a Fourth Drill Rig to Expedite Drilling at Its Kibi Gold Project

Rhea-AI Summary

Xtra-Gold Resources (OTCQB: XTGRF) has acquired its fourth diamond drill rig, a CS1000/P4 crawler-mounted unit, to accelerate exploration at its Kibi Gold Project. The company stands out by operating its own drill rig fleet instead of using third-party contractors, resulting in an 80% reduction in finding cost per gold ounce.

The company's drilling costs are under US$50 per meter, compared to Ghana's average contracted rate of US$250 per meter. Having drilled over 100,000 meters at Kibi Gold Project, this strategy has saved approximately US$20 million. The new rig will support resource expansion at the Orange No. 5 target, potentially extending the project's footprint to over 5 kilometers.

Positive

• 80% reduction in gold finding costs compared to peers
• US$20 million in estimated cost savings from operating own drill rigs
• Drilling costs of US$50/meter vs. industry average of US$250/meter in Ghana
• Potential resource footprint expansion to over 5 kilometers in strike length

Negative

• Significant capital investment required for purchasing and maintaining drill rigs

Toronto, Ontario--(Newsfile Corp. - September 23, 2025) - Xtra-Gold Resources Corp. (TSX: XTG) (OTCQB: XTGRF) ("Xtra-Gold" or the "Company"), is pleased to announce the acquisition of its fourth (4^th) diamond drill rig (the "Drill Rig"), which will substantially accelerate the Company's exploration efforts at our Kibi Gold Project. The Drill Rig consists of a CS1000/P4 crawler-mounted diamond drill rig specifically designed for Xtra-Gold.

(Photo of Xtra-Gold's CS1000/P4 Crawler-Mounted Diamond Drill Rig Arriving at Our Mine Camp in Ghana)

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1445/267543_20daa4017460cb91_002full.jpg

Xtra-Gold is unique for a gold exploration company for operating its own fleet of drill rigs, versus contracting drill rigs from third parties. This has dramatically reduced our finding cost per ounce of gold by approximately 80% compared to our peers, which has added significant shareholder value.

James Longshore, CEO/Co-Founder states: "The average cost to contract a drill rig in Ghana is approximately US$250 per meter, with our drill costs running below US$50 per meter. Having drilled over 100,000 meters on our Kibi Gold Project, operating our own drill rigs has saved the Company an estimated US$20 million to date. With the recent advancement of the Orange No. 5 resource expansion target potentially expanding our Kibi Gold Project resource "footprint" to over 5 kilometers in strike length, the addition of this new drill rig will be instrumental in expediting our resource growth."

About Xtra-Gold Resources Corp.

Xtra-Gold is a Ghana-focused gold exploration company with a substantial land position totaling 226 km² in the Kibi Gold Belt. The Kibi Gold Belt is geologically analogous to the neighboring, world famous Ashanti Gold Belt, which is one of the most highly endowed gold belts in the world with estimated global gold resources totaling over 130 million ounces. Our company is the best positioned explorer to make the next major gold discovery in Ghana.

Forward-Looking Statements

The TSX does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward- looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

Contact Information

For further information please contact:

James Longshore
Chief Executive Officer
Tel.: 242-363-3864
E-mail: info@xtragold.com
Website: www.xtragold.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/267543

FAQ

What is the significance of Xtra-Gold (XTGRF) acquiring its fourth drill rig?

The fourth drill rig will accelerate exploration at the Kibi Gold Project while maintaining 80% lower drilling costs compared to using contractors, with costs under US$50 per meter versus the industry average of US$250 per meter in Ghana.

How much has Xtra-Gold (XTGRF) saved by operating its own drill rigs?

Xtra-Gold has saved approximately US$20 million by operating its own drill rigs over drilling 100,000 meters at the Kibi Gold Project.

What is the potential expansion of Xtra-Gold's Kibi Gold Project?

With the advancement of the Orange No. 5 resource expansion target, the Kibi Gold Project's resource footprint could potentially expand to over 5 kilometers in strike length.

How do Xtra-Gold's drilling costs compare to industry standards in Ghana?

Xtra-Gold's drilling costs are under US$50 per meter, significantly lower than Ghana's average contracted rate of US$250 per meter, representing an 80% cost reduction.

What type of drill rig did Xtra-Gold (XTGRF) acquire in September 2025?

Xtra-Gold acquired a CS1000/P4 crawler-mounted diamond drill rig specifically designed for the company's needs.