(TheNewswire)
Reno, Nevada – TheNewswire - September 21, 2022 - Allegiant Gold Ltd.(“Allegiant” or the “Company”) (TSXV:AUAU) (OTCQX:AUXXF) is very pleased to announce a new discovery ofmineralized rhyolite at the East Pediment, Eastside Project, Tonopah,Nevada. The new discovery has led the Company to stake an additional194 mining claims near hole ES-258 within anarea of similar geology .
Eastside Project Highlights
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Discovery of new mineralization with 0.1 g/t Au over51.5m including 7.5m averaging 1.3g/t Au
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Staking of additional 194 federal lode mining claimsnear Hole ES-258
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Follow-up reverse circulation (“RC”) drillingprogram to commence in October 2022
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Ongoing deep diamond drill core program in the OriginalPit Zone (“OPZ”)
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Project wide airborne magnetic survey to be conductedin 6 weeks
Peter Gianulis, CEO of AllegiantGold , commented: “We areexcited to have made a new discovery outside of the OPZ at Eastsidefrom this recently completed RC drill program. In continuation toour philosophy that exploration drilling is key to making newdiscoveries, we were proud to have completed this extended explorationprogram intended to expand the resource potential at Eastside. Theproject continues to surprise us, we believe that additionaldiscoveries will be made as we conduct additional explorationincluding the current 4,000m DDH program upon which we arefocused.”
The Company has also staked an additional 194 claimsthat it believes are of strategic importance in relation to our newdiscovery (see Map 1).
The OPZ at Eastside presently hosts a current NI 43-101pit-constrained Inferred resource of 1.1 million ounces of gold and 8.7 million ounces of silver * and is open at depth and tothe south, east and west.
Allegiant completed a 31-hole, 7,800 metre RC drillprogram focusing on two areas outside the OPZ focusing on the EastPediment and Western Anomaly areas. 21 holes were drilled at theEast Pediment at an average depth of 203 meters and 11 holes weredrilled at the Western Anomaly at an average depth of 223 meters (seeMap 2 for additional information). The Companyhas contracted Boart Longyear to conduct a follow-up RC programconsisting of approximately 20 holes for a total of 5000 additionalmeters. The rig is expected to arrive on site on, or around, October20, 2022.
Geological Comment
Andy Wallace, Chief Geologist of Allegiant Gold,commented “Allegiant returned to purely exploration drilling for the2022 RC drilling campaign at Eastside after several years of drillingon the OPZ. To date, exploration targets at Eastside that had beendefined by surface sampling, lithologic and alteration mapping, andgeophysics, remained untested. The first two of these targets to betested in 2022 were the East Pediment and the West Anomaly.
The drilling of 21 exploratory holes on the EastPediment focused on resistivity highs identified by CSAMT geophysicalsurveys; the OPZ is associated with resistivity highs. Most of theEast Pediment resistivity highs were associated with dacite plugswhich were unmineralized, however one high was formed by rhyoliteidentical to the principal host rock at the OPZ. This rhyolite wasmineralized; assays returned gold values above 0.1 g/t over 51.5meters of the 242-meter length of drill hole ES-258. Interceptsinclude: 86.4 to 93.9 meters averaging 1.3 g/t Au, including 86.4 to 87.9 meters averaging 4.4 g/t Au, alongwith 197 to 229 meters averaging 0.28 g/t Au. The mineralization inthis hole is open in all directions with the other nearest drill holesbeing 500 meters to the northeast and southeast; gold mineralizationis also open at depth as the bottom of hole ES-258 returned 4.5 metersaveraging 0.25 g/t Au. Allegiant considers this hole to be a new golddiscovery that has no offset drilling. The volume and grade of goldmineralization is not yet known and requires follow-up explorationdrilling.”
Eleven holes were drilled at the West Anomaly; most ofthe holes encountered anomalous gold within thick zones of >35meters of alteration associated with anomalous silver. The bestintercepts were 34.8 to 45.4 meters averaging 0.93 g/t Au in ES-268and 76.7 to 83.8 meters averaging of 1.4 g/t Au in ES-264.
The East Pediment discovery hole opens up a large areafor future exploration and the Company is planning to drill a gridpattern of offset holes in all directions around ES-258 in lateOctober 2022. The Company has also contracted an airborne magnetometersurvey over the East Pediment, the OPZ, the West Anomaly area andSouth Zone targets, which have yet to have any drilling; the survey isscheduled to commence within the next six weeks.
Allegiant has also recently staked 194 new federal lodemining claims covering the parts of the pediment interpreted to haveshallow overburden. The contiguous Eastside land package now totals1,252 claims (25,040 acres or approximately 39.1 square miles)stretching from the OPZ south to the Boss/Castle area.
Map 1: Location Map with NewClaims
https://allegiantgold.com/site/assets/files/2209/alg_eastsideproject_220920v2.jpg
Map 2: Location of RC drill holesincl ES-258
https://allegiantgold.com/site/assets/files/2209/alg_eastside_project_220919.jpg
* The updatedresource estimate (“Updated Resource Estimate and NI 43-101Technical Report, Eastside and Castle Gold-Silver Project TechnicalReport, Esmeralda County, Nevada”) conducted by Mine DevelopmentAssociates (“ MDA ”) of Reno, Nevada, with an effective date of July 30,2021, contained a pit-constrained Inferred Resources (cut-off grade of0.15 g/t Au) of 61,730,000tonnes grading 0.55 g/t Au and 4.4 g/t Ag at the Original Pit Zone (1,090,000 ounces gold and8,700,000 ounces silver) and 19,986,000 tonnes grading 0.49 g/t Au at theCastle Area (314,000 ounces gold). A copy of the Eastside TechnicalReport can be found on SEDAR at www.sedar.com.
QUALIFIED PERSON
Andy Wallace is a Certified Professional Geologist(CPG) with the American Institute of Professional Geologists and isthe Qualified Person under NI 43-101, Standards of Disclosure forMineral Projects, who has reviewed and approved the scientific andtechnical content of this press release.
ABOUT ALLEGIANT
Allegiant owns 100% of 7 highly-prospective goldprojects in the United States, 5 of which are located in themining-friendly jurisdiction of Nevada. Four of Allegiant’s projectsare farmed-out, providing for cost reductions and cash-flow.Allegiant’s flagship, district-scale Eastside project hosts a largeand expanding gold resource and is located in an area of excellentinfrastructure. Preliminary metallurgical testing indicates that bothoxide and sulphide gold mineralization at Eastside is amenable to heapleaching.
ON BEHALF OF THE BOARD
Peter Gianulis
CEO
For more information contact:
Investor Relations
(604) 634-0970 or
1-888-818-1364
ir@allegiantgold.com
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in policies ofthe TSX Venture Exchange) accepts responsibility for the adequacy oraccuracy of this release .
Certain statements and informationcontained in this press release constitute "forward-lookingstatements" within the meaning of applicable U.S. securities lawsand “forward-looking information” within the meaning of applicableCanadian securities laws, which are referred to collectively as"forward-looking statements". The United States PrivateSecurities Litigation Reform Act of 1995 provides a “safe harbor”for certain forward-looking statements. Allegiant Gold Ltd.’s (“Allegiant”)exploration plans for its gold exploration properties, the drillprogram at Allegiant’s Eastside project, the preparation andpublication of an updated resource estimate in respect of the OriginalZone at the Eastside project, Allegiant’s future exploration anddevelopment plans, including anticipated costs and timing thereof;Allegiant’s plans for growth through exploration activities,acquisitions or otherwise; and expectations regarding futuremaintenance and capital expenditures, and working capitalrequirements. Forward-looking statements are statements andinformation regarding possible events, conditions or results ofoperations that are based upon assumptions about future economicconditions and courses of action. All statements and information otherthan statements of historical fact may be forward-looking statements.In some cases, forward-looking statements can be identified by the useof words such as “seek”, “expect”, “anticipate”,“budget”, “plan”, “estimate”, “continue”,“forecast”, “intend”, “believe”, “predict”,“potential”, “target”, “may”, “could”, “would”,“might”, “will” and similar words or phrases (includingnegative variations) suggesting future outcomes or statementsregarding an outlook. Such forward-looking statements are based on anumber of material factors and assumptions and involve known andunknown risks, uncertainties and other factors which may cause actualresults, performance or achievements, or industry results, to differmaterially from those anticipated in such forward-looking information.You are cautioned not to place undue reliance on forward-lookingstatements contained in this press release. Some of the known risksand other factors which could cause actual results to differmaterially from those expressed in the forward-looking statements aredescribed in the sections entitled “Risk Factors” in Allegiant’sListing Application, dated January 24, 2018, as filed with the TSXVenture Exchange and available on SEDAR under Allegiant’s profile atwww.sedar.com. Actual results and future events could differmaterially from those anticipated in such statements. Allegiantundertakes no obligation to update or revise any forward-lookingstatements included in this press release if these beliefs, estimatesand opinions or other circumstances should change, except as otherwiserequired by applicable law.
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