Allegiant Announces Filing of Preliminary Short Form Prospectus and Updated Technical Report FOR Previously Announced Bought Deal Offering and Updated Inferred Resource Estimate of 1.4M GOLD and 8.7M Silver Ounces at Flagship Eastside Project IN Nevada
ALLEGIANT ANNOUNCES FILING OF PRELIMINARY SHORT FORM PROSPECTUS
AND UPDATED TECHNICAL REPORT FOR PREVIOUSLY ANNOUNCED BOUGHT
DEAL OFFERING AND UPDATED INFERRED RESOURCE ESTIMATE OF 1.4M GOLD
AND 8.7M SILVER OUNCES AT FLAGSHIP EASTSIDE PROJECT IN NEVADA
Reno, Nevada /August 4, 202 1 - Allegiant Gold Ltd. (“ Allegiant” or the “Company ”) (AUAU: TSX -V) (AUXXF:
OTCQX) is pleased to announce that it has filed a preliminary short form prospectus in connection with its bought
deal offering of 12,500,000 Units at $0.40 per Unit, and has concurrently filed an updated technical report on its
Eastside project entitled “Updated Resource Estimate and NI 43 -101 Technical Report, Eastside and Castle Gold -
Silver Project Technical Report, Esmeralda County, Nevada” prepared by Mine Development Associates and dated
July 30, 2021 (the “MDA Technical Report”).
The MDA Technical Report incorporates information from drilling and exploration work conducted by the Company
at Eastside, including approximately 9,000 metres of RC drilling, since the date of the last technical report on the
property in January of 2020. The work has resulted in a significant increase in Inferred resources at its district-scale
flagship, Eastside and Castle property near Tonopah, Nevada. The updated resource now incorporates a resource
at the Castle Area and 9 additional holes at the Eastside Original Pit Zone. Highlights include:
• Includes 1.09 million gold ounces at 0.55 grams per tonne (“g/t”) at Eastside Original Pit Zone and a n
inferred resource of 314,000 gold ounces at 0.49 g/t at the Castle Area, both within pit-constrained models
at a cut-off grade of 0.15 g/t gold, US$1,750/ounce gold price and a US$21.88 silver price;
• The updated Eastside Resource estimate represents a 41% increase in gold ounces over the previous
Eastside resource report, an increase of 408,000 gold ounces
• The Eastside resource is open to the south and west and at depth; the Castle resources are open in all
directions. The planned work program for 2021-2022 will focus on the recent high-grade discovery in the
Eastside Original Pit Zone as well as expansion and exploration drilling to the south, west and east.
Eastside Resource Estimate
The updated resource estimate (“Updated Resource Estimate and NI 43-101 Technical Report, Eastside and Castle
Gold-Silver Project Technical Report, Esmeralda County, Nevada”) was conducted by Mine Development Associates
(“MDA”), a division of RESPEC of Reno, Nevada with an effective date of July 30, 2021. Contained pit-constrained
Inferred Resources (cut-off grade of 0.15 g/t) of 1,090,00 Au ounces in 61,730,000 tonnes at 0.55 g/t Au and
8,700,000 Ag ounces at 4.4 g/t Ag at the Original Pit Zone and 314,000 Au ounces in 19,986,000 tonnes at 0.49 g/t
Au at the Castle Area. In accordance with NI 43-101, the MDA Technical Report dated July 30, 2021, will be filed on
SEDAR. This report builds on and supersedes the NI 43-101 reports of Ristorcelli (December 2016), Ristorcelli (July
2017), Ristorcelli (January 2020) and Ristorcelli (November 2020) titled “Amended Updated Resource Estimate and
NI 43 -101 Technical Report, Eastside and Castle Gold-Silver Project, Esmeralda County, Nevada ” prepared for
Allegiant with an Effective Date of December 30, 2019.
Andy Wallace, ALLEGIANT Chief Geologist, oversaw the incorporation of the additional 9 drill holes at the Original
Pit Zone and 49 drill holes at the Castle Area into the updated and initial inferred resource estimate.
Table 1: Eastside Inferred Gold and Silver Resources
The resources in the table below are the estimate of Inferred gold and silver resources at Eastside. The base case
uses a cut-off grade of 0.15 g/t gold as well as other cut-off grade levels which approximates anticipated economic
cutoffs based on preliminary metallurgical test work and operations cost estimates. To determine the "reasonable
prospects for eventual economic extraction" MDA prepared the estimate based on per tonne mining costs of
US$1.65 and G&A costs of US$0.50 respectively. Heap -leach and milling costs used were US$4.60 and US$10. 00,
respectively. The prices of gold and silver were US$1,750 and US$21.88 per ounce, respectively. MDA ran a series
of optimized pits using variable gold and silver prices, mining costs, processing costs and processing scenarios.
Notes to table of resources:
• Contained ounces may not add due to rounding.
Cut-Off Au g/t) Tonnes Grade (Au g/t) Au Ounces Grade (Ag g/t) Ag Ounces
0.10 91,160,000 0.41 1,200,000 3.6 10,600,000
0.15 61,730,000 0.55 1,090,000 4.4 8,700,000
0.20 45,710,000 0.69 1,010,000 5.1 7,500,000
0.25 37,590,000 0.79 950,000 5.7 6,900,000
0.30 32,200,000 0.87 900,000 6.2 6,400,000
0.35 28,400,000 0.95 870,000 6.6 6,000,000
0.40 25,320,000 1.02 830,000 7.0 5,700,000
0.50 20,130,000 1.16 750,000 7.7 5,000,000
Original Pit Zone
Cut-Off Au g/t) Tonnes Grade (Au g/t) Au Ounces
0.10 24,410,000 0.42 332,000
0.15 19,986,000 0.49 314,000
0.20 16,946,000 0.55 298,000
0.25 14,589,000 0.60 281,000
0.30 12,852,000 0.64 265,000
0.40 9,580,000 0.74 229,000
0.50 6,720,000 0.87 188,000
Castle Area
• These Mineral Resources occur in such form, grade or quality and quantity that there are reasonable prospects for
eventual economic extraction.
• It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to at least Indicated
Mineral Resources with continued drilling.
• Inferred Mineral Resources are not Mineral Reserves. Mineral resources which are not mineral reserves do not have
demonstrated economic viability.
• The Qualified Person for the above resource estimate is Steven Ristorcelli, C.P.G., an associate of MDA
The Original Pit Zone drilling database contains 36,923 gold assays and 14,163 silver assays used for the estimation
of the resources reported herein. The assigned densities range from 2.15g/cm3 for volcaniclastic sedimentary rocks
and steam -heated altered rhyolite, to 2. 6g/cm3 for undifferentiated basement Paleozoic rocks. The principal
rhyolite host rock was assigned a density value of 2.35g/cm3.
The Castle Area drilling database on which the deposit is modeled has 455 historical drill holes and 49 RC drill holes
completed by the Company . The drilling database from which the estimate was made has 11,402 gold assays.
Silver was not modeled. The assigned densities range from 2.4g/cm 3 to 2.6g/cm3 and the overlying gravels were
assigned 1.8g/cm3
At Eastside, p reliminary metallurgical studies conducted by Kappes, Cassiday and Associates, in Reno, Nevada,
indicate the mineralization is amenable to recovery by cyanidation. Heap -leach extractions are expected to be
around 70% and 20% for gold and silver, respectively, but likely would require crushing. Milling with a fine grind is
expected to result in extractions over 90% for gold and approximately 50% silver.
QUALIFIED PERSON
Andy Wallace is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists and
is the Qualified Person under NI 43 -101, Standards of Disclosure for Mineral Projects, who has reviewed and
approved the scientific and technical content of this press release.
The NI 43-101 updated resource estimate for the Eastside and Castle gold-silver property was prepared under the
direction of Steven Ristorcelli, C.P.G., and associate of MDA, a Qualified Person under NI 43-101, who has reviewed
and consented to the information in this news release that relates to the reported resources.
ABOUT ALLEGIANT
Allegiant owns 100% of 10 highly prospective gold projects in the United States, 7 of which are located in the
mining-friendly jurisdiction of Nevada. Three of Allegiant’s projects are farmed-out, providing for cost reductions
and cash-flow. Allegiant’s flagship, district-scale Eastside project hosts a large and expanding gold resource and is
located in an area of excellent infrastructure. Preliminary metallurgical testing indicates that both oxide and
sulphide gold mineralization 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
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Certain statements and information contained in this press release constitute "forward-looking statements" within the meaning of applicable
U.S. securities laws and “forward-looking information” within the meaning of applicable Canadian securities laws, which are referred to
collectively as "forward-looking statements". The United States Private Securities 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 drill program
at Allegiant’s Eastside project, the preparation and publication of an updated resource estimate in respect of the Original Zone and the Castle
Area at the Eastside project, Allegiant’s future exploration and development plans, including anticipated costs and timing thereof; Allegiant’s
plans for growth through exploration activities, acquisitions or otherwise; and ex pectations regarding future maintenance and capital
expenditures, and working capital requirements. Forward-looking statements are statements and information regarding possible events,
conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements
and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can
be identified by the use of 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 (including negative
variations) suggesting future ou tcomes or statements regarding an outlook. Such forward -looking statements are based on a number of
material factors and assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results,
performance or achievements, or industry results, to differ materially from those anticipated in such forward -looking information. You are
cautioned not to place undue reliance on forward -looking statements contained in this press release. Some of the known risks and other
factors which could cause actual results to differ materially from those expressed in the forward -looking statements are described in the
sections entitled “Risk Factors” in Allegiant’s Listing Application, dated January 24, 2018, as filed with the TSX Venture Exchange and available
on SEDAR under Allegiant’s profile at www.sedar.com. Actual results and future events could differ materially from those anticipated in such
statements. Allegiant undertakes no obligation to update or revise any forward -looking statements included in this press release if these
beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.