Near-term drilling programs. Beginning this month, reverse circulation (RC) drilling will focus on the east pediment zone and the western anomaly and entail 35 holes, including 25 holes at the east pediment zone with an average depth of 200 meters per hole, and 10 holes at the western anomaly with an average depth of 300 meters per hole. Core drilling will begin in May to test the recently discovered high-grade zone within the western edge of the original pit zone and will entail 7 core holes with an average depth of 600 meters.Updating estimates. For the three-month period ending December 31, 2021, Allegiant Gold reported a net loss of C$(0.01) per share compared to C$(0.00) during the prior year period and our estimate of C$0.00. Operating expenses were modestly above our estimates, and we have adjusted our fiscal year 2022 net loss per share estimate to C$(0.01) from C$0.00. Our 2023 per share estimate is unchanged. The company ended the quarter with a strong balance sheet, with cash and short-term investments of C$3,766,214 and $1,078,948, respectively, and no debt.M&A activity in Nevada. We think Eastside’s location in Nevada and significant expansion potential likely make it an eventual candidate for acquisition by a larger mining concern. In February, Centerra Gold Inc. (NYSE: CGAU, Not Rated) acquired Gemfield Resources, owner of the nearby Goldfield development project located 30 miles south of Tonopah, Nevada, for US$175 million in cash, along with a future milestone payment of US$31.5 million in cash or shares. Centerra contemplates a conventional open-pit, heap leach mine project. A resource estimate is expected in the first half of 2023. Reasons for the acquisition included the potential to enhance Centerra's growth profile and to improve its jurisdictional risk profile due to Nevada's reputation as a premier mining jurisdiction globally.Rating is Outperform. Allegiant has made substantial 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 drilling program could provide catalysts for the stock and 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 >>