Allegiant Gold Ltd. [AUAU-TSXV; AUXXF-OTCQX says it plans to expand the operating permit area at its flagship Eastside Project near Tonopah, Nevada. The company also said it expects to release an updated resource estimate for the Eastside Project in the coming weeks.
Allegiant was spun out last year to contain what were previously the Western U.S. exploration assets of Columbus Gold Corp. [CGT-TSX; CBGDF-OTCQX],
Allegiant owns 10 projects in the Western U.S., including seven in Nevada. All were handpicked by Andy Wallace, a successful and highly experienced geologist.
His track record of success includes multi-million-ounce gold discoveries including the Marigold, Pinson and Dee mines in Nevada. Wallace is currently working as the company’s technical adviser.
The 100%-owned Eastside Project contains a pit-constrained inferred resource of 35.78 million tonnes of grade 0.63 g/t gold equivalent for a total of 721,000 gold equivalent ounces in the Original Zone.
Preliminary metallurgical testing indicates that both oxide and sulphide mineralization at the Original Zone is amenable to heap leaching.
However, in a December 10, 2019 update the company said it is working with Mine Developers Associates to provide an updated resource estimate.
“Our goal in updating the initial pit-constrained resource at the original discovery zone at Eastside is to provide us with a clearer idea as to the amount of economic resources as well as potential for the expansion of the pit zone,” said Allegiant CEO Peter Gianulis
Gianulis recently replaced Robert Giustra in an executive shuffle. Giustra, who was previously Chairman and CEO, continues in the role of Chairman.
“We believe that the 67 km2 Eastside district has the potential to host numerous pit zones and we will be spending the next year identifying additional zones beyond the existing pit zone in the north and the Boss/Castle resource area in the south,” Gianulis said. “We have only explored less than 5% of the total property and are very excited for the upcoming exploration program in 2020.”
Meanwhile, Allegiant said its board of directors has approved the 2020 budget that will include expanding the permitted operating zone from 601 acres to approximately 3,200 acres. The proposed exploration program will evaluate numerous targets with the end goal of drilling the high-priority targets when the company’s permits are received.
“We also have identified up to five additional areas from alteration mapping and geochemical sampling that warrant further exploration,” Wallace said. “I look forward to working closely with Allegiant once again to continue to advance this amazing project.”
Allegiant shares were unchanged Wednesday at 17 cents. The shares are currently trading in a 52-week range of $0.07 and 34 cents.