ALLEGIANT Options Out Three Projects
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NEWS RELEASE
ALLEGIANT Options Out Three Projects
Vancouver, BC, Canada, January 22, 2019, Allegiant Gold Ltd. (“ALLEGIANT”) (AUAU: TSX -V)
(AUXXF: OTCQX) is pleased to announce that it has optioned -out three projects. Two projects, Bolo
and Mogollon, have been optioned to Barrian Mining Corp. (“Barrian”) and one project, Four Metals,
has been optioned to Barksdale Capital Corp. (“Barksdale”) (BRO: TSX-V).
“With our focus in the foreseeable future clearly dedicated to our high -impact 6 project discovery
drilling campaign , optioning -out certain projects will ensure they are adva nced with exploration
spending”, said Robert Giustra, Chairman & CEO of ALLEGIANT. “In addition, ALLEGIANT’s annual
property holding costs may be reduced by up to $ 600,000 during the option periods , and the deals
could generate up to approximately $3 million in option payments to ALLEGIANT.”
BOLO OPTION AGREEMENT
ALLEGIANT has granted Barrian, a private gold exploration company in the process of completing an
IPO, the option to acquire up to a 75% interest in the Bolo gold project, located in Nevada . Barrian
can earn a n initial 50.01% interest in Bolo by issuing common shares valued at US$1.0 million to
ALLEGIANT over a 3-year period, and by incurring exploration expenditures of at least US$4 .0 million
by December 31, 2022. Barrian can earn an additional 24.99% interest in Bolo, for a total of 75% , by
incurring an additional US$4.0 million in exploration expenditures within 2 years of earning the initial
50.01% interest. If Barrian does not earn an additional 24.99% interest in Bolo, it will transfer 0.02%
back to ALLEGIANT such that ALLEGIANT will hold a 50.01% interest in Bolo.
Gold mineralization at Bolo is Carlin -type, similar to Pinson, Lone Tree/Stonehouse, and Turquoise
Ridge/Getchell, all multi -million-ounce producers, where gold spreads into wall rocks along high -
angle structures. Surface sampling at Bolo has defined widespread gold mineralization, associated
with jasperoids and iron -stained structures, along two parallel north -south trending f aults known as
the Mine Fault and the East Fault. Alteration along the Mine Fault has been traced for 2,750 metres,
with outcrop sampling returning gold values up to 8.6 g/t gold. The East Fault has been mapped for
2,200 metres and has returned gold values up to 4.7 g/t gold.
The Mine Fault and the East Fault and dozens of altered outcropping and buried cross -faults at Bolo
have had very limited drilling and represent excellent exploration targets. An exploration target map
can be found at the following link:
www.allegiantgold.com/nr/2019-01-22-targets.pdf
Allegiant Gold Ltd.
1090 Hamilton Street
Vancouver, BC V6B 2R9, Canada
www.allegiantgold.com
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Bolo has the potential to host good grade pods of Carlin -type gold mineralization . At least t wo such
pods have been identified with drilling so far, and as more pods are uncovered, the focus will
eventually shift to definition drilling to establish potential for resources.
MOGOLLON OPTION AGREEMENT
ALLEGIANT has also granted Barrian an option to acquire a 100% interest in the Mogollon gold
project, located in New Mexico. Barrian can earn a 100% interest in Mogollon by issuing common
shares valued at US$1.0 million to ALLEGIANT over a 3-year period.
Mogollon covers an extensive, silver -gold bearing epithermal vein field on a caldera margin of the
Tertiary Bursum volcanic center. A number of historical silver -gold deposits are hosted at Mogollon
in classic epithermal veins , which demonstrate good continuity of grade and thickness for strike
lengths of up to 4,000 ft (1,219 m) in the Little Fanny and Last Chance mines , and through a
remarkably consistent, elevation -controlled vertical range of about 1,000 ft (305 m). There are two
sets of veins at Mogollon, an east -west set represented by the productive Little Fanny and Last
Chance veins, and a north -south set represented by the Queen vein developed in the Consolidated
Mine.
Significant intercepts of gold and silver have been encountered in past drilling at Mogollon. Excellent
resource expansion potential exists at Mogollon as only 4.8 km of the total 72 km epithermal vein
system has been developed.
FOUR METALS OPTION AGREEMENT
In April, 2018 ALLEGIANT granted Barksdale the option to acquire 100% of its interest in the Four
Metals project, located in Arizona. To earn the interest , Barksdale must make cash and share
payments totaling US$450,000 to ALLEGIANT and its partner MinQuest Ltd., on a 50/50 basis, over a
five-year period.
The Four Metals project is located in the Patagonia District 16 km (10 miles) north of Nogales, Santa
Cruz County. The Patagonia Range contains a number of undeveloped porphyry copper, breccia
copper, and polymetallic vein and replacement deposits within the famous Arizona Porphyry Copper
Ore Province.
The Four Metals claims cover the historical Four Metals copper mine which has been intermittently
investigated since the 1960's . Past programs have included underground development, surface and
underground core drilling, resource estimates, metallurgical test work, and various investigations of a
leach copper mining operation at the site.
The Four Metals copper deposit is hosted within a crudely circular breccia pipe, about 305 m (1,000
ft) in diameter, intru ding batholitic granite rocks. Mineralization consists of a shallow zone of
supergene enriched chalcocite mineralization underlain by a larger body of primary mineralization
containing chalcopyrite, pyrite, and molybdenite.
Various resource estimates have been carried out at Four Metals . The project has the potential for
near term development of a small, low capital, copper mine in an area of favorable infrastructure and
markets.
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Qualified Person
Andy Wallace is a Certified Professional Geologist (CPG) with the American Institute of Professional
Geologists and is a Qualified Person as defined under National Instrument 43 -101 - Standards of
Disclosure for Mineral Projects. Mr. Wallace has reviewed and approved the technical content of this
press release.
ABOUT ALLEGIANT
ALLEGIANT owns 100% of 1 2 highly-prospective drill -ready gold projects in the United States, 9 of
which are located in the mining-friendly jurisdiction of Nevada. ALLEGIANT’s flagship Eastside project
hosts a large and expanding gold re source, is district scale, 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.
ABOUT BARRIAN
Barrian Mining Corp is a private junior exploration company focused on acquiring proven gold assets
in the United States. Barrian is composed of successful public market entrepreneurs whose goal is to
create value for shareholders through the drill bit. Ba rrian has entered into an earn in agreement
with ALLEGIANT to acquire up to a 75% interest in the proven and highly prospective Carlin type Bolo
asset located about 90 km north of Tonopah Nevada and a 100% interest in a second asset located in
New Mexico. Barrian will trade under the symbol BARI upon completion of its IPO.
Further information regarding ALLEGIANT can be found at www.allegiantgold.com
ON BEHALF OF THE BOARD,
Robert F. Giustra
Chairman & 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.
Forward Looking Statements
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. 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
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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”, “t arget”,
“may”, “could”, “would”, “might”, “will” and similar words or phrases (including negative variations) suggesting future outcomes
or statements regarding an outlook. Forward -looking statements in this and other press releases include, but are not limited to
statements and informati on regarding: Allegiant Gold Ltd.’s (“Allegiant”) property holding costs savings or income generated
from optioning out certain properties; Allegiant’s drilling and exploration plans for its properties, including anticipated costs and
timing thereof; the potential of hosting good grade gold mineralization or expansion; Allegiant’s plans for growth through
exploration activities, acquisitions or otherwise; and expectations regarding future maintenance and capital expenditures,
working capital requireme nts; and Barrian’s plan to complete an initial public offering and its acquisition of certain properties .
Such forward-looking statements are based on a number of material factors and assumptions and involve known and unknown
risks, uncertainties and othe r 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 contain ed 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 Ap plication, 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 unde rtakes 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 requ ired
by applicable law.
Bolo Property Boundary
4,267,000N
554,000E
555,000E
4,266,000N
4,265,000N
East
Fault Zone
Mine
Fault Zone
UNCLE SAM PATENT
MS 38
WCEX
FNEX
NEX
SMF
NEFZ
Wood Canyon Ext. of
Mine Fault Zone
Far North Ext. of Mine Fault
Elevated trace element geochem
in altered intervals in limestone
North Extension
of Mine Fault
South Mine Fault Zone
Confirmed up-dip extension
of gold mineralization to surface
NE Fault Zone
Elevated trace
element
geochem
at contact
0 300 metres
0 1500 feet
South Mine Fault Zone
Uncle Sam Patented Claim
Drill hole BL-38:
30.5 metres of 3.24 g/t Au
Historic silver producer.
Sampling returned
up to 95 opt Ag.
Fault Zone
Fault
Previous drill hole
2017 drill hole
Section 4930N
TARGET MAP
Bolo Gold Project, Nevada
www.allegiantgold.com