(TheNewswire)
STRONG BALANCE SHEET PROVIDESFLEXIBILITY
Tonopah, Nevada - TheNewswire - November 16, 2023 - Allegiant Gold Ltd.(“Allegiant” or the “Company”) ( TSXV: AUAU ) ( OTC: AUXXF) is pleased to provide an update on our corporate strategy andexploration plans for 2024.
Peter Gianulis, CEO of AllegiantGold , commented: “2023has proven to be an exceptionally challenging year for most juniors;the capital markets have all but ceased to exist for companies lookingto raise non-flow-through financing funds. The Company made thedecision to focus on strengthening our balance sheet throughout theyear even as financial conditions for most juniors significantlydeteriorated. The Company has successfully completed the sale of twoof our non-core properties in 2023, Four Metals to Barksdale andMogollon to Summa Silver, which has provided us with cash andmarketable securities. Today, our balance sheet is one of thestrongest in the junior sector and we have accomplished it without anydilution to our shareholders. As we go into 2024, the Company is nowwell positioned to execute the business plan which calls for continueddevelopment of our Flagship Project, the Eastside District. Allegiantwill continue to be prudent and disciplined with its capital as itadvances the core projects.”
In 2024, Allegiant’s focus and strategy will betwo-fold:
1. Advance the twomain zones at the Eastside District (Castle and McIntosh Zone) towardsa development decision through:
a) CastleProject diamond core drilling; and
b) McIntosh Zone diamond core drilling
2. Conduct furtherstudies on the economic viability of re-processing the existingheap-leach and waste rock dumps and stockpilesat the previously producing Boss Mine within the Castle Zone.
Allegiant believes that the successful reprocessing ofthis residual leach and dump material within the Castle Zone couldprovide an important source of rev enue andcash-flow to the Company that can be allocated to further develop theEastside District as a whole.
At the Castle Project, which incorporates the formerproducing Boss Mine, Berg, Black Rock & Castle Prospects, we planto drill a series of diamond core drill holes (“DDH”). The goalwill be to expand and improve the project’s resource(s) definitionand improve understanding the of the mineralization host structuresand gold distribution. The Company’s belief is that the CastleProject has the potential to be significantly larger and at a highergrade than previously defined. Drilling in early 2023 proved theexistence of mineralization that starts at a depth of only 5m fromsurface at the previously producing Boss Mine. For example,mineralization in drill hole ES-294, immediately southwest of the BossMine main pit, occurred in the second sample, 1.5m to 3.0m belowsurface, and continued to a depth of 50m. The drill plan in 2024 willbegin with drilling under our current Notice-of-Intent permit that wasreceived in June 2023. The Company is also pleased to announce thefiling of the Plan-of-Operations with the BLM, an important step thatwill allow us to drill to a production decision.
At the McIntosh Zone, the Company plans to drillseveral DDH holes to test the high-grade zone that was previouslyidentified in 2021. For example, drill hole ES-243 returned highgrade intercepts up to 89 g/t gold and 217g/tsilver that indicate the potential for Bonanza style epithermalmineralization. The 2024 drill program’s main goals are to identify how distribution of gold and silvermineralization, especially in the high-grade areas, is controlled bylithology and structure; greater understanding of these controls willlead to more accurate targeting of zones of high-grade gold-silvermineralization. All the data acquired throughout these plannedprograms will be integrated into a single 3-Dimensional computergenerated model that will be used for drill planning, resourceestimation and mine planning using the most up-to-date software.
The abandoned Boss Mine, within the Castle Project, hasa heap leach pad, waste dumps and stockpiles that contain mineralizedmaterial as identified by sampling programs in 2023 ( https://allegiantgold.com/en/news/2023/allegiant-announces-high-grade-results-from-tailings-and-waste-dumps-at-former-boss-mine-within-the-eastside-district/ ). The precious metal values returned from the leach pad ofup to 8.0 g/t gold and 28.2 g/t silver indicate that at current metalprices, and with limited reprocessing and leaching, gold and silvercould be economically extracted. The Company believes that this couldbe achieved relatively rapidly in co-operation with the state andfederal agencies as it would result in higher quality reclamation ofthe current mine site. Further gold and silver may be recovered fromreprocessing the waste dumps and stockpiles that in places returnedassays up to 22.2 g/t gold and 10.2 g/t silver. The presence ofhigh-grade material on the old stockpiles indicates that the CastleProject’s full potential may not have been reached and that areas ofhigh-grade mineralization have yet to be discovered. Drilling earlierthis year by Allegiant (NR dated 14 th March, 2023)identified zones of higher grade gold, up to 4.5 g/t gold, accompaniedby broad haloes of silver mineralization, up to 28.4 g/t silver. TheCompany’s interpretation is that mineralization continues further tothe north of previous historic drilling.
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 five highly prospective gold projects inthe United States all of which are in the mining-friendly jurisdictionof Nevada. Two of Allegiant’s projects are currently farmed-out,providing for cost reductions and cash-flow. Allegiant’s flagship,district-scale Eastside project hosts a large and expanding goldresource and is in an area of excellent infrastructure. Preliminarymetallurgical testing indicates that both oxide and sulphide goldmineralization at Eastside is amenable to heap leaching.
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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