Castle Zone Plan-of-Operations. Within the Eastside project area, Allegiant Gold commenced a Plan-of-Operations for the Castle Area to expand the permitted area from 5 acres to 1,648 acres. Castle is comprised of 130 claims encompassing an area of approximately 2,600 acres and includes the Berg, Blackrock, Boss, and Castle deposits.Upgrading resources. The Castle Area hosts a pit-constrained inferred resource of 314,000 gold ounces averaging 0.49 grams of gold per tonne using a cut-off grade of 0.15 grams of gold per tonne. Allegiant’s goal is to expand the existing resource, upgrade resources from inferred to measured and indicated, along with conducting advanced metallurgical work leading up to an eventual preliminary economic assessment. Upgrading resources to measured and indicated may require only a modest amount of drilling which we think could occur as early as later this year.Resource expansion potential. In late 2020 and early 2021, Allegiant drilled 49 reverse circulation holes in the Castle area representing 5,850 meters of drilling. All but two holes encountered mineralization within 45 meters of surface. Initiating a Plan-of-Operations is an important step since it will allow the company to expand drilling activities at Eastside.Rating is Outperform. While the current focus is on drilling in the northern portion of the project area, we think the Castle Area represents a significant value creation opportunity that is largely unrecognized by investors. Allegiant has made significant progress in advancing its Eastside project and has a clear plan to add resources through drilling and to define the project’s high-grade areas. Results from the company’s reverse circulation and core drilling program could provide near-term catalysts for the stock. Our rating remains Outperform based on our view that Eastside could develop into a multi-million-ounce resource. Read More >>