ALLEGIANT Announces Updated Inferred Resource Estimate of 1.1 million Gold- Equivalent Ounces, an increase of 52% at Flagship Eastside Project in Nevada
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NEWS RELEASE
ALLEGIANT Announces Updated Inferred Resource Estimate of 1.1 million Gold-
Equivalent Ounces, an increase of 52% at Flagship Eastside Project in Nevada
Vancouver, BC, Canada, January 27, 2020, Allegiant Gold Ltd. (“ALLEGIANT”) (AUAU: TSX-V) (AUXXF:
OTCQX) is pleased to announce a significant increase in inferred resources at its district-scale flagship,
Eastside project near Tonopah, Nevada. The updated resource incorporates an additional 22 holes
drilled at the Original Zone. Highlights include:
• Updated Eastside Inferred Mineral Resource estimate (as of December 30, 2019) of 1,094,000
gold-equivalent (“AuEq”) ounces at 0.60 grams per tonne (“g/t”) within a pit-constrained model
using a cut-off grade of 0.15 g/t gold, US$1,550/ounce gold price and a US$19.67/ounce silver
price;
• The updated Eastside Resource estimate represents a 52% increase over the previous Eastside
resource report, an increase of 373,000 gold-equivalent ounces within the pit at the Original
Zone;
• The resource is open in all directions. The planned work program for 2020 will focus on
expansion of the Original Zone to the south, north, west and east;
• The updated resource at the Original Zone is separate and distinct from the Castle claim block
at Eastside, which hosts near surface historical* oxide gold totaling 273,173 ounces.
A map of the Eastside project can viewed at the following link:
www.allegiantgold.com/nr/2020-01-27-map.pdf
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”) of Reno, Nevada with an effective date of December 30, 2019.
Contained pit-constrained Inferred Resources of 1,094,000 AuEq ounces at 57,050,000 tonnes at 0.60
g/t AuEq (gold-equivalent ounces were calculated by ALLEGIANT using a silver/gold ratio of 80:1) In
accordance with NI 43-101 the MDA Technical Report dated January 24, 2020 will be filed on SEDAR.
This report builds on and supersedes the NI 43-101 reports of Ristorcelli (December 2016) and
Ristorcelli (July 2017) titled “Resource Estimate and Technical Report, Eastside Gold-Silver Project,
Esmeralda County, Nevada” prepared for Allegiant with an Effective Date of July 25, 2017.
A copy of the Eastside Technical Report can be found on SEDAR at www.sedar.com.
Allegiant Gold Ltd.
1090 Hamilton Street
Vancouver, BC V6B 2R9, Canada
www.allegiantgold.com
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Andy Wallace, ALLEGIANT technical advisor, oversaw the incorporation of the additional 22 drill holes
into the updated resource estimate. “We continue to be pleased with the progress being made at
Eastside and are looking forward to expanding the operating permit. This will allow us to explore the
additional targets we have outlined with the goal of increasing resources. We will also continue to
explore the areas immediately adjacent to the Original Zone as the deposit is still clearly open to the
south, west, and at-depth, and possibly east and north.,” commented Mr. Wallace.
Table 1: Eastside Inferred Gold Equivalent Resources
The resources in the table below reflect the estimate of Inferred gold equivalent resources at Eastside
at a base case 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 for an envisioned open-pit with combined heap-leach and milling scenario. To determine the
"reasonable prospects for eventual economic extraction" MDA chose to report the resource
considering per tonne mining costs of US$1.35 and G&A costs of US$0.50 respectively. Heap-leach and
milling costs used were US$4.60 and US$10.40, respectively. The prices of gold and silver were
US$1,550 and US$19.67 per ounce, respectively, with gold equivalent ounces using a silver/gold ratio
of 80:1. MDA ran a series of optimized pits using variable gold and silver prices, mining costs,
processing costs and processing scenarios.
Cutoff
(g Au/t) Tonnes
Au Grade
(g/t) Ounces - Au
Grade
(Ag g/t) Ounces Ag AuEq Ounces
AuEq
(g/t)
0.10 84,400,000 0.41 1,104,000 3.5 9,541,000 1,223,000 0.45
0.11 77,600,000 0.43 1,081,000 3.7 9,141,000 1,195,000 0.48
0.12 71,540,000 0.46 1,059,000 3.8 8,775,000 1,169,000 0.51
0.13 65,970,000 0.49 1,036,000 4 8,422,000 1,141,000 0.54
0.14 61,230,000 0.52 1,016,000 4.1 8,111,000 1,117,000 0.57
0.15 57,050,000 0.54 996,000 4.3 7,838,000 1,094,000 0.60
0.16 53,210,000 0.57 977,000 4.4 7,563,000 1,072,000 0.63
0.17 49,820,000 0.60 959,000 4.6 7,315,000 1,050,000 0.66
0.18 46,870,000 0.63 943,000 4.7 7,089,000 1,032,000 0.68
0.19 44,450,000 0.65 928,000 4.8 6,889,000 1,014,000 0.71
0.20 42,320,000 0.67 915,000 4.9 6,703,000 999,000 0.73
0.25 34,960,000 0.77 863,000 5.4 6,098,000 939,000 0.84
0.30 29,970,000 0.85 819,000 5.8 5,631,000 889,000 0.92
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Notes to table of resources:
• Contained ounces may not add due to rounding.
• 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 J. Ristorcelli, CPG of MDA, however, gold-equivalent
ounces were calculated by ALLEGIANT.
The Eastside area drilling database contains 33,028 gold assays and 12,601 silver assays used for the
estimation of the resources reported herein. The assigned densities range from 2.2g/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.
Preliminary 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.
Eastside Exploration and Strategy
“We are very pleased with the continued results at Eastside. We have merely scratched the surface at
Eastside, having only explored less than 5% of the property and believe that Eastside will deliver
significantly more upside in the coming years. We will be focusing most of our exploration efforts
primarily on the areas near the original discovery zone and resource area as the deposit continues to
be open to the south, north, west and at-depth,” commented Peter Gianulis, President & CEO.
Ongoing field work at Eastside has generated a significant number of new targets from both geologic
and alteration mapping, combined with geochemical sampling. ALLEGIANT has determined that the
Original Zone, Targets 1, 2, and 6, are actually part of a large and continuous zone or cell of
hydrothermal alteration, which extends for 5.5 km north and south, and is about 1-2 km wide. The
Original Zone, where essentially all drilling has occurred to date, lies completely within this large cell of
hydrothermal alteration. The cell provides abundant drill targets for future drilling. In addition,
geochemical targets exist at Targets 3, 5, and 7. Further, the east flank on the ALLEGIANT claim block
is "pediment" in nature, where only a few small bedrock exposures are present and rocks are mostly
covered with a thin veneer (10-20 m) of alluvium. As announced back in December, the Board has
approved an expansion of the permitted operating zone from the current 601 acres to approximately
3,600 acres in order to better understand and target these additional areas that warrant further
exploration.
Historical Estimate*: Castle Claim Block
The Castle claim block covers an area of 9.6 sq. km and is located 13 km south of the Original Zone but
still within the Eastside property. The Castle claims are covered by shallow alluvium of 10-30 metres
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with potential for increased resources and contain a near surface historical* oxidized resource estimate
of 273,173 gold ounces as outlined in the table below:
* The historical resource estimate for the Castle claims was completed by James D. Greybeck, Senior
Geologist for Cordex Exploration Co. in April 1999, under the direction of Andy B. Wallace, then
Manager of Cordex Exploration Co. and Vice President of Rayrock Mines, Inc. This report and data used
in its preparation has been recently reviewed by Andy B. Wallace for the purpose of this press release
under his obligations a Qualified Person for ALLEGIANT. Drill data used for Greybeck's report was from
Cordex Exploration Co., Kennecott Exploration, Houston Oil and Minerals, Falcon Exploration, and
Mintek Resources which data is on file in the offices of Cordex Exploration Co. The data is judged
relevant and reliable by Andy B. Wallace. The resource was termed a "Geologic Resource" at the time
of Greybeck's report, which was in line with current practice for the time. Greybeck prepared geological
cross sections and calculated the resource by hand, using a polygonal method with a lower cut-off of
.005 opt Au (0.17 g/t Au). Where drilling was closely spaced gold values were interpolated between
cross sections using weighted averages projected 50 feet on either side of the cross section. ALLEGIANT
plans additional drilling to confirm Greybeck's interpretations and to fill in gaps in the drilling. A
qualified person has not done sufficient work to classify the historical estimate as current mineral
resources or mineral reserves. ALLEGIANT is not treating the historical estimate as current mineral
resources or mineral reserves.
ALLEGIANT continues to conduct geological work at the Castle Claim area within Eastside and is
exploring different options and scenarios. “We continue to evaluate the next phase in exploration and
technical work associated with the Castle Claim areas with the idea of increasing the resource size and
ultimately completing an updated resource estimate in compliance with NI 43-101 standards and,
thereby incorporating the resource in the district wide resource estimate at Eastside,” commented
Peter Gianulis.
ALLEGIANT is guided by the principals of accretive value-added resource exploration. We have
developed the concept of Shares per Metre Drilled (“SMD”) to better understand the effects of drilling
costs on dilution. “As a publicly traded company, we are focused on adding value to our shareholders.
Analyzing our capital allocation decisions within the context of SMD gives us a better understanding of
dilution and how to best deploy our financial resources in our next drilling program. At present, our
current funds will be best employed to look for additional resources in the target areas near the Original
Zone,” commented Mr. Gianulis, President & CEO.
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ALLEGIANT is focused on Eastside, the flagship project, and is evaluating alternatives to continue
advancing its other attractive exploration projects including Goldfields West, Browns Canyon, Overland
Pass, Clanton Hills and White Horse. “We are continuing to work with our partners to advance Bolo,
Mogollon and Four Metals, and will be providing an update in the coming weeks,” added Mr. Gianulis.
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.
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 gold-silver deposit was prepared under the
direction of Steven J. Ristorcelli, CPG 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.
Further information regarding ALLEGIANT can be found at www.allegiantgold.com
ON BEHALF OF THE BOARD,
Peter Gianulis
President & CEO
For more information contact:
Investor Relations
(604) 634-0970 or
1-888-818-1364
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forward-looking statements are described in the sections entitled "Risk Factors" in Allegiant's Listing Application, dated
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