Encouraging drill results from the Castle Zone. Allegiant released results for 49 exploration reverse circulation (RC) drill holes, representing 5,850 meters of drilling in the Castle Zone and around the Boss pit located within the company’s Eastside gold project. The drilling confirmed significant surface oxide gold material and encountered a shallow gold zone which begins within 30 meters’ depth and continues for 20 to 40 meters in thickness. Of the 49 holes drilled, 47 encountered mineralization within 45 meters' depth.More drilling results to follow. In April, the company completed a 9-hole drilling program representing approximately 3,800 meters of drilling near the original pit zone. We expect results to be released soon. There are significant opportunities to continue to develop the original pit zone by expanding the permitted area. The company has been working with the Bureau of Land Management and we think the permit could be granted by the end of the second quarter. Following receipt of the permit, 5,000 meters of drilling would be focused on the East Pediment zone.Updated mineral estimate on the horizon. Next steps planned for the Castle area include expansion drilling, metallurgy, and a resource estimate and a scoping study. We think management will provide visibility on the timing in the coming weeks. Recall that Eastside currently has a NI 43-101 compliant inferred resource of 996 thousand gold ounces and 7.8 million silver ounces, or 1.1 million ounces of gold equivalent, with significant expansion potential.Rating is Outperform. In our view, Eastside represents significant upside potential for investors as the company expands the resource base and proves its economics. Based on the results released thus far, we think Allegiant is well on its way to significantly increasing Eastside's resource base, minimizing the strip ratio, and identifying areas that offer the potential for a starter-pit. Additionally, the company is creating value for shareholders through its option portfolio where it farms out non-core properties for cash and shares and retains royalty interests. Read More >>