Drilling expected to commence shortly. Reverse circulation (RC) drilling is expected to commence within two to three weeks and focus on the east pediment zone and the western high-grade anomaly and entail 30 holes to about 200 meters depth using one rig. Core drilling that is planned to define high-grade areas discovered during the most recent drill program could be delayed until May due to an eagle’s nest near the area of planned drilling. Allegiant has filed for an eagle take permit that would allow for the relocation of the eagles and nest that is near the high-grade zone. Otherwise, drilling would have to follow the eagle nesting cycle.More to Eastside than gold? While Eastside is a gold exploration project, Nevada is well-known for hosting lithium in its hydrographic basins. Given that the Eastside property is prospective for lithium, particularly the Castle zone, management intends to fund studies to assess its potential. Were this to develop, opportunities could exist to eventually sell or spin-off lithium-rich areas of the property, or option certain parcels of the property to third parties and maintain royalty interests. At this point, Allegiant is exploring options but has no plans to develop lithium resources on its own.No near-term funding needs. While Allegiant has not yet filed financial statements for the fiscal year ended in September 2021, we see no near-term needs for financing. Allegiant closed a C$5 million financing in August and receives proceeds associated with its option portfolio, including cash and marketable securities.Rating is Outperform. 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 RC drilling program could provide catalysts for the stock and we don’t view any potential shift to the core drilling time table as meaningful. Our rating remains an Outperform based on our view that Eastside could develop into a multi-million-ounce resource representing significant upside potential for shareholders. Read More >>