(TheNewswire)
Tonopah, Nevada – TheNewswire --January 17, 2024 - Allegiant Gold Ltd. (“Allegiant” or the“Company”) (TSXV: AUAU ) (OTC: AUXXF ) is pleased to announce the start of drillingat its Eastside property in Nevada, commencing on, or about, February10, 2024.
At this time, the drilling program will consist ofdrilling eleven (11) diamond core drill holes (“DDH”) for a totalof approximately 3,200 meters; the drill holes will be within threedistinct areas of the Eastside District including two principal zones:the Castle and McIntosh Zones. Big Sky Exploration based in EurekaNevada, has been contracted to operate the drill program.
Peter Gianulis, CEO of AllegiantGold , commented: “We areexcited to get back in the field and drill and test these three highimpact zones at Eastside. I believe this drill program to be one ofthe most significant and important work programs that Allegiant hasundertaken in the past 3-4 years. I want to thank our entire teamfor their dedication and discipline in creating a robust explorationmodel incorporating over 60,000 meters of drilling and assays,thousands of geochemical samples, geological maps, geophysics and therecently completed structural geological mapping and interpretation. I am confident that this gives us the best opportunity for continuedsuccess in making the Eastside District one of the premier projects inthe State of Nevada. I am also very proud of our ability to undertakean extensive drill program without having to rely on the capitalmarkets to finance our work; a function of years of careful planningand extreme cost discipline.”
McIntosh Zone
At the McIntosh Zone, the Company plans to drill 3 to 4diamond core drill holes at the High-Grade Zone (“HGZ” – see Map1 below) down to a depth of approximately 400 meters (approximately1200 to 1600 meters of total drilling). The program will test theworking hypothesis that precious metal (gold-silver) mineralization ishosted by parallel, sheeted, epithermal veins containing zones ofhigh-grade gold and silver as identified in prior drill programs. Forexample, drill hole ES-243 returned high grade intercepts of up to89g/t Gold and 217g/t Silver that indicate the potential for Bonanzastyle epithermal gold-silver mineralization. The main goals of the2024 drill program are to better comprehend thedistribution of gold and silver mineralization (especially in thehigh-grade areas) and how it is controlled by lithology and structure;greater understanding of these controls will lead to more accuratetargeting of zones of high-grade gold-silver mineralization, andpotentially an upgrade of the overall average gold and silver gradesof the deposit. All the data acquired throughout these plannedprograms will be integrated into a single 3-dimensionalcomputer-generated model that will be used for drill planning,resource estimation and mine planning using the most up-to-datesoftware.
Furthermore, Allegiant expects to drill 2 additionaldiamond core drill holes (800 meters total drilling – see Map 2below) to test the South Hill, an area that lies immediately to thesouth of the McIntosh Zone and is believed to be a fault off-setextension of mineralization to the north and may occur closer to thesurface.
Both the McIntosh and South Hill drill holes will betesting for sheeted, epithermal-style, vein hosted gold-silvermineralization that the Company’s geologists believe is theprincipal host to potentially economic gold-silver mineralization.Additional holes may be added to the drill program if initial results prove encouraging; the Company hasa fully permitted exploration Plan of Operation (“PoO”) in place at both theMcIntosh and South Hill Prospects.
MAP 1: HGZ DRILL TARGETS (MCINTOSHZONE)
https://allegiantgold.com/site/assets/files/3354/eastside_drilling2023_explorationpdh_240115.jpg
MAP 2: SOUTH HILL DRILL TARGETS(MCINTOSH ZONE)
https://allegiantgold.com/site/assets/files/3354/eastside_drilling2023_xpnsnpdh_2401152.jpg
Castle Project
At the Castle Project, which incorporates the formerlyproducing Boss Mine, as well as the Berg, Black Rock & CastleProspects, we plan to drill approximately 6 diamond core drill holes(total of 1200 meters of drilling – see Map 3 below) with the goalof expanding and improving the project’s resource(s) definition andimprove understanding of the mineralization host structures and golddistribution. The Company believes that the Castle Project has thepotential to be significantly larger and at a higher grade thanpreviously defined. Drilling in early 2023 proved the existence ofmineralization that starts at a depth of only 5m from surface at thepreviously producing Boss Mine. For example, mineralization in drillhole ES-294, immediately southwest of the Boss Mine main pit, occurredin the second sample, 1.5m to 3.0m below surface, and continued to adepth of 50m. The drill plan in 2024 will begin with drilling underour current Notice-of-Intent permit, which was received in June 2023and subsequently amended in August 2023. The Company has also fileda PoO with the BLM, an important step that will allow us to drill to aproduction decision.
MAP 3: CASTLE ZONE DRILLTARGETS
https://allegiantgold.com/site/assets/files/3354/alg_eastside_bosscastle_drilling_240115.jpg
ISSUANCE OF STOCK OPTIONS &RSU’S
The Board has approved the granting of 900,000restricted stock units (“RSUs”) and 2,300,000 incentive stockoptions to directors, officers and consultants. The options areexercisable at $0.15 for a period of five years and will vest in fourequal parts over eighteen months. The RSUs are exercisable untilDecember 31, 2027 and will vest annually over 36 months.
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. Allegiant’s flagship, district-scale Eastside projecthosts a large and expanding gold resource and is in an area ofexcellent infrastructure. Preliminary metallurgical testing indicatesthat both oxide and sulphide gold mineralization at Eastside isamenable to heap leaching.
ON BEHALF OF THE BOARD
Peter Gianulis
CEO
For more information contact:
Investor Relations
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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