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Allegiant Gold Ltd
Symbol AUAU
Shares Issued 74,003,342
Close 2020-11-20 C$ 0.29
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Allegiant retracts Eastside estimate in Q2 MD&A

2020-11-20 19:54 ET - News Release

Mr. Peter Gianulis reports

ALLEGIANT GOLD PROVIDES CLARIFICATION ON PREVIOUS DISCLOSURE

As a result of a review by the B.C. Securities Commission, Allegiant Gold Ltd. is issuing this news release to clarify certain disclosure that it previously made in its management's discussion and analysis for the six-month period ended March 31, 2020, on the company's website and in the company's corporate presentation, which was available on the company's website.

Amended National Instrument 43-101 technical report

As a result of a review by the B.C. Securities Commission, the company has filed an amended NI 43-101 technical report entitled "Updated Resource Estimate and NI 43-101 Technical Report, Eastside and Castle Gold-Silver Property, Esmeralda County, Nevada," dated Aug. 11, 2020, with an effective date of Dec. 31, 2019. The amended technical report does not change the updated mineral resource estimate outlined in the original report dated Jan. 24, 2020. The review by the B.C. Securities Commission is now complete.

MD&A

The MD&A contained a map on page 6, which disclosed an estimate of mineral resources with respect to the company's Eastside project, which disclosure was not in compliance with and restricted by National Instrument 43-101. The same map also disclosed estimates for the Castle, Berg and Black Rock zones that were indicated as historical but were not compliant with and restricted by NI 43-101.

The map with the deficient disclosures has not been included in subsequently filed MD&As.

Corporate presentation

The company's corporate presentation dated May, 2020, which was previously available on the company's website, contained certain disclosure that was non-compliant with NI 43-101.

Slide 6 (slide 8 in the current corporate presentation) contained a table which included a column that disclosed approximate current gold reserves and resources in ounces for five mines, which disclosure was non-compliant with and contrary to Section 2.2(b) and (d) of NI 43-101, which requires an issuer to report each category of mineral resources and mineral reserves separately, and state the extent, if any, to which mineral reserves are included in total mineral resources, as well as state the grade or quality and the quantity for each category of the mineral resources and mineral reserves. The company has deleted the column containing the non-compliant disclosure from the table on the slide.

Slides 8, 9 and 10 (slides 9, 10 and 11 in the current corporate presentation) included disclosure regarding inferred resources on the Eastside project, which did not provide all of the disclosure required by Section 2.3(1)(d) of NI 43-101. The required disclosure has in part been added to footnote 1 on each respective slide and as additional disclosure on new slide 23. The added disclosure includes clarification with respect to the disclosed contained pit-constrained inferred resources of 1,094,000 gold equivalent ounces at 57.05 million tonnes at 0.60 gram per tonne AuEq, as follows. Gold equivalent ounces were calculated by the company using a silver to gold ratio of 80 to 1. Utilizing a 0.15-gram-per-tonne-gold cut-off, measured gold was 0.54 g/t, and silver was 4.3 g/t. Heap leach extractions are expected to be around 70 per cent and 20 per cent for gold and silver, respectively, using a three-stage crushing procedure. Milling with a fine grind is expected to result in extractions over 90 per cent and around 50 per cent for gold and silver, respectively.

Slides 8, 9 and 17 (slides 9, 10 and 18 in the current corporate presentation) included disclosure regarding historical estimates with respect to the Castle, Berg and/or Black Rock zones of the Eastside project that did not meet all the disclosure requirements of Section 2.4 of NI 43-101, and were therefore contrary to Section 2.2 and restricted by Section 2.3(1)(a) of NI 43-101. The required additional disclosure has been added as additional disclosure on new slide 23, to which footnote 2 on each respective slide refers. The additional disclosure on slide 23 with respect to historical estimates includes statements explaining that the report containing the historical estimate and the data used in its preparation were reviewed by Andy B. Wallace, a qualified person for the company; that the data are judged relevant and reliable by Mr. Wallace; what method was used to calculate the historical resource estimate; that a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves; and that the company is not treating the historical estimate as current mineral resources or mineral reserves.

An updated version of the corporate presentation which includes the corrections to deficient disclosure as set out above is now available on the company's website.

Company website

On the company's website under the Mogollon project section, certain maps and diagrams, which were accessible under maps, disclosed estimates of mineral resources that were restricted by Section 2.3(1)(a) of NI 43-101 and were contrary to Section 2.2 of NI 43-101.

All of these maps and diagrams have been removed from the company's website.

About Allegiant Gold Ltd.

Allegiant owns 100 per cent of 10 highly prospective gold projects in the United States, 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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