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 EstimateThe
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.
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.
Table 1 accompanying this
announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/cb4e8511-ee60-4b32-91d9-12e6a67d8407
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
BlockThe 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 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:
Table 2 accompanying this
announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/233f5095-b32f-4242-83ee-c4edf3a1944c
* 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.
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 ALLEGIANTALLEGIANT 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 PersonAndy 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
or1-888-818-1364ir@allegiantgold.com
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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
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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
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