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Allegiant Gold Ltd
Symbol AUAU
Shares Issued 74,003,342
Close 2020-09-09 C$ 0.61
Recent Sedar Documents

Allegiant Gold clarifies NR from earlier today

2020-09-10 15:00 ET - News Release

An anonymous director reports

CLARIFICATION OF SEPTEMBER 10, 2020 NEWS RELEASE: ALLEGIANT TO COMMENCE 15,000 METRE DRILL PROGRAM AT EASTSIDE

At the request of the Investment Industry Regulatory Organization of Canada, Allegiant Gold Ltd. has clarified certain disclosure in its Sept. 10, 2020, news release. The company has adjusted certain language on today's press release to clarify that the reference to historical resources at the Castle zone area are under policy considered historical estimates. Further, the reference in the table to the estimate of 273,173 total historical ounces is actually gold not silver.

Clarification of deficiencies in news release

The second paragraph did not provide the following disclosure in compliance with National Instrument 43-101 2.4 -- Disclosure of Historical Estimates, and Companion Policy 43-101CP 2.4(1) -- Disclosure of Historical Estimates, which requires specific disclosure including required of the cautionary language for historical estimates each time the disclosure of the historical estimate is made. In addition, an incorrect cross-reference (that is, *) was provided. Please refer herein for the correct disclosure.

Eastside has significant expansion potential. The drilling at Eastside is designed to test additional targets, confirm and expand the resources at the Castle zone, and increase ounces at the Original zone, which currently hosts a current inferred mineral resource of 1,094,000 gold equivalent ounces utilizing a $1,550 (U.S.) per ounce gold price and a $19.67 (U.S.) per ounce silver price (see press release of Jan. 27, 2020).

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 and vice-president of Rayrock Mines Inc. These report and data used in its preparation has been recently reviewed by Mr. Wallace for the purpose of this press release under his obligations as a qualified person for Allegiant. Drill data used for Greybeck's report was from Cordex Exploration, Kennecott Exploration, Houston Oil and Minerals, Falcon Exploration, and Mintek Resources, which data are on file in the offices of Cordex Exploration. The data are judged relevant and reliable by Mr. 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 0.005 ounce per ton 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.

The table disclosing historical estimate incorrectly disclosed "Ounces Au" as "Ounces Ag." In addition, the disclosure required by NI 43-101 2.4 -- Disclosure of Historical Estimates was not included.

Historical estimate**

Castle claim block

The Castle claims cover an area of 9.6 square km and are located 13 km south of the Original zone but still within the Eastside property. The Castle claims are covered by shallow alluvium of 10 to 30 m with potential for increased resources and contain a near-surface historical** oxidized resource estimate of 273,173 gold ounces.

The historical resource estimate for the Castle claims was completed by Mr. Greybeck, senior geologist for Cordex Exploration, in April, 1999, under the direction of Mr. Wallace, then manager of Cordex Exploration and vice-president of Rayrock Mines. These report and data used in its preparation has been recently reviewed by Mr. Wallace for the purpose of this press release under his obligations as a qualified person for Allegiant. Drill data used for Greybeck's report was from Cordex Exploration, Kennecott Exploration, Houston Oil and Minerals, Falcon Exploration, and Mintek Resources, which data are on file in the offices of Cordex Exploration. The data are judged relevant and reliable by Mr. 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 0.005 ounce per ton 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.

Disclosure of the current AuEq mineral resource did not disclose the grade of each metal used to establish the metal or mineral equivalent grade as required by NI 43-101, 2.3(1)(d) Restricted Disclosure.

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, Nev., with an effective date of Dec. 30, 2019. Contained pit-constrained inferred resources of 1,094,000 AuEq ounces at 57.05 million tonnes at 0.6 g/t AuEq (gold equivalent ounces were calculated by Allegiant using a silver/gold ratio of 80:1). Utilizing a 0.15 g/t cut-off for Au, measured gold was 0.54 g/t and silver was 4.3 g/t. In accordance with NI 43-101, the MDA technical report dated Jan. 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.

As required by NI 43-101 3.3(2) -- Requirements Applicable to Written Disclosure of Exploration Information, the following disclosure of exploration results did not provide the company's quality assurance/quality control procedures or protocol, or name the lab that completed the assays/analysis of the samples. The information has been corrected herein.

Recent 2020 mapping and sampling by Allegiant geologists of the Boss pit walls indicates that more gold mineralization remains at Boss. The Boss pit samples were analyzed at American Assay Laboratories in Reno, Nev. The pit samples were taken by Jon Vinson and Peter Chapman using professional sampling techniques. The samples were in the custody of Mr. Vinson and Mr. Chapman until delivered at American Assay. Samples were analyzed for 30 elements, including gold by fire assay with an atomic absorption finish. Only gold values were considered to be material. Silver assays were too low to be material. Continuous chip sampling across several broad structures exposed in the pit walls produced a number of notable results, including:

  • 110 feet (33.3 m) of width yielded 0.98 g/t gold on a deeper bench in the south/southwest pit wall;
  • 80 feet (24.2 m) width of 1.93 g/t gold from an upper bench on the south side of the pit;
  • Two zones of 10 feet (three m) of 1.71 g/t gold and an additional 50 feet (15.1 m) of 1.65 g/t gold on the uppermost bench of the east/southeast side of the pit;
  • 40 feet (12.1 m) of 0.52 g/t gold on the upper bench of the north/northwest side of the pit;
  • 50 feet (15.1 m) of 0.76 g/t on the bench just below the above on the north/northwest side of the pit.

In addition, Allegiant mapping and surface sampling (0.1 to 3.9 g/t gold) has indicated a northerly trending structural zone running along the eastern pit margin and extending at least 300 m north of the pit to the edge of alluvial cover, and possibly 200 m or more south of the pit, also under alluvial cover. This zone will be tested by a series of angled drill holes.

Allegiant plans to complete a minimum of 30 drill holes in the upcoming drilling program near the Boss pit, totalling 5,450 m. Additional drilling may be added with favourable results. Allegiant's goal is to produce a 43-101 considering the whole Castle area, including Boss, in late 2020.

About Allegiant Gold Ltd.

Allegiant owns 100 per cent of 10 highly prospective gold projects in the U.S., six of which are located in the mining-friendly jurisdiction of Nevada. Four 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

Mr. 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.

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