Drilling program. We think Allegiant could commence drilling in October using both reverse circulation (RC) and diamond core drill rigs. The number of rigs may depend on availability which is tight. The company is in the process of securing drilling contractors. Over the next twelve months, management expects to drill 60 to 70 holes, representing approximately 23,000 meters of drilling at targets located within the existing resource pit shell and at other exploration targets. This includes 10 holes, or 6,000 meters, of diamond core drilling along the western edge of the original pit zone and 50 to 60 holes, or 17,000 meters, of step-out and exploration drilling. The company's recent financing provides financial flexibility to fund planned activities.Permit expected shortly. Because there are significant opportunities to continue to develop the original pit zone by expanding the permitted area from 601 acres to 3,600 acres, exploration drilling will include areas outside the current permitted area, including the East Pediment Zone. We expect the company to receive the permit within the next several weeks.Properties under option. Allegiant’s option portfolio includes several prospective projects of which three, Bolo, Mogollon, and Four Metals, are optioned out to third-party exploration companies. While Allegiant is focused on advancing Eastside, the option program generates income in the form of cash and shares, while ensuring these properties are placed with capable operators with Allegiant retaining royalty interests. Summa Silver Corp. (TSX Venture, SSVR) recently announced it received drill permits for the Mogollon property in New Mexico. A diamond drill has been secured and is expected to be deployed at the beginning of the fourth quarter with 15,000 meters of drilling planned before the end of the second quarter of 2022.Rating is Outperform. In our opinion, Eastside represents significant upside potential for investors as the company expands the resource base and proves its economics. Near-term catalysts include: 1) receipt of the BLM permit to expand the permitted area, 2) provision of contract drilling providers and equipment, and 3) commencement of drilling in October. The company’s exploration and drilling program has progressed well resulting in a 41% increase in inferred gold resources with the recently updated mineral resource estimate for the Eastside and Castle properties. Read More >>