(TheNewswire)
Tonopah, Nevada – TheNewswire - March 14, 2023 - Allegiant Gold Ltd.(“Allegiant” or the “Company”) ( TSXV: AUAU) ( OTC: AUXXF) is verypleased to announce drill results from a winter exploration drillprogram at the Castle Prospect within the Eastside Project near thetown of Tonopah, Nevada.
A reverse circulation (“RC”) drilling programtotalling approximately 2,400 metres was successfully completed at theCastle Prospect, part of a larger ongoing exploration and resourcedevelopment program underway at the Eastside Project. The assayresults returned gold values up to 6.4 g/t Au and silver values up to38.73 g/t Ag. The exploration program has identified additional broadareas that require further drilling, potentially adding gold andsilver ounces to the existing N.I. 43-101 defined resource at theCastle Prospect.
Castle Prospect Highlights
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19 RC holes were successfully drilled to depth andtotaled 2,385m (Table 1) with above cut-off grade mineralizationencountered in 16 of 19 holes.
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ES-310 encountered 15 metres of 1.36 g/t Au and 8.2 g/tAg and ES-301 encountered 1.52 metres of 6.4 g/t Au and 28.41 g/tAg
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Assay results have been received for drill holes ES-292through ES-310; significant results are summarized in Table2.
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All results will be combined with the existing resourcemodel and added to the developing geologic model; The resulting datawill be used to define future drill targets.
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New drill targets will be added to the Plan ofOperations currently being developed for the Castle Prospect.
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Development of a combined gold and silver resourcemodel.
Peter Gianulis, CEO of AllegiantGold , commented: “Wehave been singularly focused on advancing the Eastside Projectincluding the Castle Prospect which is comprised of four zones(Castle, Boss, Berg and Blackrock). Over the next 12 months, ourfocus will be to continue advancing the Castle Prospect whichpotentially provides Allegiant with a path to resource expansion andnearer term production. The most recent results are extremelyencouraging to achieve this objective due to the occurrence of nearsurface gold and silver mineralization, including the presence ofhigher-grade material (>1 g/t Au). Furthermore, we are includingsilver mineralization in our reporting whereby in the past silver wasnot included. We believe silver will play an important role infuture development of the Castle Prospect going forward. We are alsoplanning to continue exploration and development drilling at theOriginal Pit Zone at Eastside later this year. Finally, Allegiantcontinues to benefit from its farm-out model of non-core projects. It provides us with non-dilutive cash inflows and work conducted onseveral of our projects that is funded by our partners.”
Castle Prospect
The Castle Prospect lies at the south end of theEastside Project and contains the abandoned Boss Mine and theundeveloped Boss, Berg, Black Rock and Castle Deposits (Map 1). The2021 Technical Report* states that the Castle Area, including Boss andBerg, has an inferred resource containing 314,000 ounces gold in19,986,000 tonnes with average grade of 0.49 g/t Au, at a cut-off of0.15 g/t Au. Silver was either not assayed or records are notavailable from historic drilling and no silver resource is currentlyavailable. However, considering the silver values reported in therecent drill program were as high as 38.73 g/t Ag, Allegiant believesthat the precious metal may provide significant upside to the overallresources.
Map 1: Map Showing Location of CastleProspect https://allegiantgold.com/site/assets/files/2209/eastside_map.png
The exploration drilling results listed in Table 2 showthe significant intercepts from drill holes ES-292 through ES-310. There are occasional narrow, high-grade zones, but the results aredominated by longer low-grade intervals that are above the resourcecut-off of 0.15 g/t Au. Notably, the silver-gold ratio is consistentlyhigh to very high (>10:1 to >100:1) and provides a significantsecondary resource mineral. Silver also serves as a usefulpathfinder for gold and consistently there is a broad halo of silvermineralization around the narrow higher-grade zones of gold and silvermineralization.
From initial observations, and combined with the assayresults, it appears that the gold and silver mineralization isdirectly associated with an oxidized and altered (recrystallized &silicified) phase of rhyolite containing gray quartz veins withvarying concentrations of either iron-oxide or occasionally pyrite.Less commonly quartz-oxide or quartz-sulfide veins occur withinandesite and very occasionally rhyolite “veins” are observedassociated within the Palaeozoic “basement” sediments; at thesedeeper levels below surface silver is anomalous as broad zones butrarely carries gold.
* The updatedresource estimate (“Updated Resource Estimate and NI 43-101Technical Report, Eastside and Castle Gold-Silver Project TechnicalReport, Esmeralda County, Nevada”) conducted by Mine DevelopmentAssociates (“ MDA ”) of Reno, Nevada, with an effective date of July 30,2021, contained a pit-constrained Inferred Resources (cut-off grade of0.15 g/t Au) of 61,730,000tonnes grading 0.55 g/t Au and 4.4 g/t Ag at the Original Pit Zone (1,090,000 ounces gold and8,700,000 ounces silver) and 19,986,000 tonnes grading 0.49 g/t Au at theCastle Area (314,000 ounces gold). A copy of the Eastside TechnicalReport can be found on SEDAR at www.sedar.com.
Table 1: Castle Prospect Drill SiteLocation and Hole Data
https://allegiantgold.com/site/assets/files/3144/castle_area_drilling_data_march_2023.pdf
Table 2: Castle Prospect –Significant Results
https://allegiantgold.com/site/assets/files/3144/castle_area_drilling_data_march_2023_-2.pdf
Map 2: Boss-Berg Drill HolesLocations (ES-292 to ES-310)
https://allegiantgold.com/site/assets/files/2209/alg_eastside_bosscastle_drilling_230226v2-1.jpg
QUALIFIED PERSON
Alan Roberts is a Certified Professional Geologist(CPG) with the American Institute of Professional Geologists and isthe Qualified Person under NI 43-101, Standards of Disclosure forMineral Projects, who has reviewed and approved the scientific andtechnical content of this press release.
ABOUT ALLEGIANT
Allegiant owns seven highly-prospective gold projectsin the United States, five of which are located in the mining-friendlyjurisdiction of Nevada. Three of Allegiant’s projects are currentlyfarmed-out, providing for cost reductions and cash-flow. Allegiant’sflagship, district-scale Eastside project hosts a large and expandinggold resource and is located in an area of excellent infrastructure.Preliminary metallurgical testing indicates that both oxide andsulphide gold mineralization at Eastside is amenable to heapleaching.
ON BEHALF OF THE BOARD
Peter Gianulis
CEO
For more information contact:
Investor Relations
(604) 634-0970 or
1-888-818-1364
ir@allegiantgold.com
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in policies ofthe TSX Venture Exchange) accepts responsibility for the adequacy oraccuracy of this release .
Certain statements and informationcontained in this press release constitute "forward-lookingstatements" within the meaning of applicable U.S. securities lawsand “forward-looking information” within the meaning of applicableCanadian securities laws, which are referred to collectively as"forward-looking statements". The United States PrivateSecurities Litigation Reform Act of 1995 provides a “safe harbor”for certain forward-looking statements. Allegiant Gold Ltd.’s (“Allegiant”)exploration plans for its gold exploration properties, the drillprogram at Allegiant’s Eastside project, the preparation andpublication of an updated resource estimate in respect of the OriginalZone at the Eastside project, Allegiant’s future exploration anddevelopment plans, including anticipated costs and timing thereof;Allegiant’s plans for growth through exploration activities,acquisitions or otherwise; and expectations regarding futuremaintenance and capital expenditures, and working capitalrequirements. Forward-looking statements are statements andinformation regarding possible events, conditions or results ofoperations that are based upon assumptions about future economicconditions and courses of action. All statements and information otherthan statements of historical fact may be forward-looking statements.In some cases, forward-looking statements can be identified by the useof words such as “seek”, “expect”, “anticipate”,“budget”, “plan”, “estimate”, “continue”,“forecast”, “intend”, “believe”, “predict”,“potential”, “target”, “may”, “could”, “would”,“might”, “will” and similar words or phrases (includingnegative variations) suggesting future outcomes or statementsregarding an outlook. Such forward-looking statements are based on anumber of material factors and assumptions and involve known andunknown risks, uncertainties and other factors which may cause actualresults, performance or achievements, or industry results, to differmaterially from those anticipated in such forward-looking information.You are cautioned not to place undue reliance on forward-lookingstatements contained in this press release. Some of the known risksand other factors which could cause actual results to differmaterially from those expressed in the forward-looking statements aredescribed in the sections entitled “Risk Factors” in Allegiant’sListing Application, dated January 24, 2018, as filed with the TSXVenture Exchange and available on SEDAR under Allegiant’s profile atwww.sedar.com. Actual results and future events could differmaterially from those anticipated in such statements. Allegiantundertakes no obligation to update or revise any forward-lookingstatements included in this press release if these beliefs, estimatesand opinions or other circumstances should change, except as otherwiserequired by applicable law.
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