(TheNewswire)
Tonopah, Nevada – TheNewswire - May 24, 2023 - Allegiant Gold Ltd.(“Allegiant” or the “Company”) ( TSX: AUAU) ( OTC: AUXXF) is verypleased to provide a detailed update of our exploration drillingprogram for the remainder of 2023.
Allegiant plans to drill a total of 15,115 metres ofReverse Circulation (“RC”) and Diamond Core Drilling (“DDH”)for 2023. The Company completed a 19-hole, 2,400 metre RC drillprogram in February 2023 at the Castle Project, Eastside District.Allegiant has already received most of the necessary drill permits andexpects the remainder in the next fiscal quarter.
Peter Gianulis, CEO of AllegiantGold , commented: “2023will be another busy year with the Company targeting four distinctareas including two drill programs at the Eastside District, andinitial drill programs at Goldfield West, one of the top prospects inour portfolio, and our recently acquired TS Project. Our goalcontinues to be the same; the efficient allocation of capital directlyinto the ground while we seek to expand our existing resources andmake new discoveries. In addition to funding our own programs, we arealso expecting additional exploration programs at our other projects,Mogollon and Bolo, which are being funded by Summa Silver and Copaur,respectively. Together, Allegiant will be one of the most activeexploration companies in the sector.””
Allegiant plans to conduct the following programsduring the remainder of the 2023 calendar year:
EASTIDE PROJECT - EASTSIDE
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11-Hole, 4,015 Metre RC Drill Program
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2-Hole, 800 Metre DDH Drill Program
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Targeting resource expansion and new targets to thesouth of the current resource area
CASTLE PROJECT - EASTSIDE
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28-Hole, 3,500 Metre RC Drill Program
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4-Hole, 800m Metre DDH Drill Program
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Resource expansion and exploration drilling
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Structural and gold distribution datacollection
GOLDFIELD WEST
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8-Hole, 2,000 metre RC Drill Program
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Phase 1 exploration drilling to establish the potentialfor hosting moderate-high sulfidation epithermal gold-silvermineralization
TS PROJECT – PROSPECTIVE FORLITHIUM/BORON
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9-hole, 1,250 metre RC Drill Program
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1-hole, 350 metre DDH Drill Program
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Targets sub-horizontal basin sedimentary sequences forLithium-Boron hosting sediments
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Sedimentological and geochemical data analysis toestablish potential for Lithium and Boron mineralization
EASTSIDE PROJECT – EASTSIDEDISTRICT
The Eastside Project, Allegiant’s flagship project,hosts an existing low-grade, bulk tonnage, low sulfidation epithermalresource (NI43-101 Technical Report dated July 30, 2021*) associatedwith relatively young rhyolite intrusive and volcanic rocks. Unliketypical low sulfidation epithermal deposits there are indications thatthe mineralized zones extend vertically over several hundreds ofmeters and is consistent with other rhyolite-hosted systems in theWalker-Lane structural trend; probably the most comparable depositcurrently being mined is Equinox’s Castle Mountain mine; the projectalso bears some similarities to Las Crucitas in Costa Rica.
The goal of the 2023 exploration and drilling program,including both reverse circulation and diamond core drilling, is toexpand the existing resource into South Eastside; the area to thenorth known as the Original Pit Zone (“OPZ”) or Eastside Resourcewill be known as the North Eastside Resource. South Eastside has notbeen drilled sufficiently to define a resource; however, historicdrilling indicates the potential for higher elevation, that is nearersurface, low-grade mineralization with high-grade zones.
Mineralization at Eastside has been identified as lowsulfidation epithermal with predictable low-grade gold-silvermineralization but controls on the distribution of gold have not beensufficient to move resource to indicated or measured. Allegiant’sadditional goal with the 2023 program is to identify how distributionof gold and silver mineralization, especially in the high-grade areas,is controlled by lithology, structure, and alteration; the greaterunderstanding of these controls will lead to more accurate targetingof zones of potentially high-grade gold-silver mineralization. The2022 core drilling program went a long way in identifying some of thecontrols, but more drilling is required to be definitive. This goal isbeing assisted by geochemical and structural mapping, and analysis, aswell as 3D modeling in Leapfrog, and resource estimation and planningin MineSight.
CASTLE PROJECT – EASTSIDEDISTRICT
The Castle Project, approximately 20 kilometers southof the Eastside Project, contains 4 known low- to moderate-sulfidationepithermal gold-silver deposits: Boss, Berg, Black Rock and Castle. Aninferred resource was defined based upon historic drilling through2020; this was followed by resource expansion drilling in early 2023which demonstrated that the Castle Project was under-drilled, and thatfurther exploration and resource expansion drilling could bringsignificant additional mineralization to the resource*.
To achieve this goal Allegiant has identified areas ofboth exploration and expansion drilling to complete the objective ofidentifying additional target areas. Allegiant has already drilled 19holes in early 2023 and will drill an additional 30-32 holes usingboth reverse circulation and diamond core drilling.
Allegiant is in the process of completing all thenecessary planning and environmental steps to enable the filing of aPlan of Operation that will include an extensive drilling program toupgrade the resource from inferred to indicated and measuredresources, steps necessary for mine planning and permitting.
* 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.
GOLDFIELD WEST PROJECT
Allegiant’s Goldfield West project is located in theGoldfield District, Esmeralda County Nevada, and shows epithermalalteration associated with highly anomalous to ore-grade goldmineralization both at the surface and in drill intercepts from thelate 1980s.
A north-northeast trending zone of alteration in thesouthern portion of Allegiant’s claim block extends for 1900 m. Historical drilling along this zone shows mineralized intercepts inmany of the drill holes over a 1200 m strike length. Drilling by USBorax/Kennecott, in this area, showed gold values up to 8.7 g/t and upto 18.6 g/t silver over 1.5 m hosted in volcanic rocks. Geophysicalsurveys conducted in 2022 show north-northeast structural trends whichsuggest these structures are the conduits for mineralizingfluids.
Allegiant has designed a program of geochemical rockchips for assaying and spectral analyses; the program will alsoinclude several soil sediment sample lines to establish whethermineralizing trends continue beneath alluvial cover. The spectralanalysis will identify zones of higher temperature minerals indicatingareas of mineralizing fluids. Results from the rock chip sampling(both assays and spectral mineral identification), geophysicalsurveys, geologic mapping and historical drilling results will becompiled to identify drill targets for a reverse circulation drillprogram of approximately 2,000m later this year.
TS CLAIMS
The TS Claims is a stand-alone land package comprising126 federal lode mining claims approximately 5kms east of the EastsideDistrict claim block. Discovered in 2022 by Allegiant geologists theTS Claims have shown indications of the potential, from surfacesampling, to host both gold-silver mineralization and lithium-boronmineralization.
Allegiant’s geologists are currently working on ageochemical sediment survey to identify anomalous element trends and,to date, results have shown (NR dated May 11, 2023) that there is adistinct lithium-boron trend across the claim block consistent withbasin-bounding normal- and strike-slip fault structures that wereidentified from analysis of topography and regional geophysicalsurveys.
The results of the geochemistry will be combined withgeophysics and other surface studies to define drill targets that willinclude both reverse circulation and diamond core drilling in2023.
QUALIFIED PERSON
Alan Roberts 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 six highly prospective gold projects inthe United States, five of which are in the mining-friendlyjurisdiction of Nevada. Two of Allegiant’s projects are currentlyfarmed-out, providing for cost reductions and cash-flow. Allegiant’sflagship, district-scale Eastside project hosts a large and expandinggold resource and is in an area of excellent infrastructure.Preliminary metallurgical testing indicates that both oxide andsulphide 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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