Investor update. Allegiant Gold recently hosted a webinar for investors to discuss recent drilling results and the company’s strategy for Eastside. Recall that Allegiant recently released results from its 9-hole drill program, representing 3,673 meters of drilling, at the Original Pit Zone (OPZ) at its Eastside project in Nevada. Mineralization was encountered in 7 of the 9 holes, including high-grade intercepts. Hole 243, a 100-meter step-out from the closest hole in the OPZ, included 2.55 grams of gold per tonne over 147.8 meters and 3.17 grams of gold per tonne over 117.3 meters.Follow-Up drilling at the OPZ. A follow-up drilling program will entail at least 5,000 meters of drilling. The drilling will focus on defining the extent of the high-grade areas discovered during the recent program, including near the bottom of the holes. 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, Allegiant expects to fund a 5,000 to 7,000 meter exploration drilling program to include areas outside the current permitted area, including the East Pediment Zone. Our estimates assume an increase in the drilling budget and funding needs.Permit expected shortly. Allegiant expects to receive the permit in July or August 2021. The Bureau of Land Management (BLM) has provided responses to the company's application. Allegiant is waiting for comments by the U.S. Fish and Wildlife Service (USFWS) needed to complete the process and receive the permit. Management is ready to commence exploration drilling upon receipt of the permit.Rating is Outperform. In our view, Eastside represents significant upside potential for investors as the company expands the resource base and proves its economics. 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. An updated resource estimate will likely incorporate drill results from the Castle and Original Pit Zones. The company is working on an operating plan for the Castle Zone to facilitate additional drilling to connect the Boss, Berg, Castle, and Black Rock Zones. Read More >>