Allegiant Gold Ltd. [AUAU-TSXV] on Friday announced results from the remaining 13 drill holes that form part of a phase 1 resource expansion program at Allegiant’s 100%-owned Eastside gold project, located 32 kilometres west of Tonopah, Nevada.
The company said the phase one program, comprised of 8,265 metres of drilling, was successful in extending the Original Zone, in an area within the Eastside, 300 metres to the west and 400 metres to the south, where it remains open in both directions.
Further, all of the holes were drilled in areas currently classified as waste in the pit-constrained resource estimate, which currently stands at 721,000 ounces of gold equivalent ounces, below the planned pit or below the pit layback.
Highlights include drill hole 147, which returned 42.7 m of 2.49 g/t gold, including 9.1 m of 9.03 g/t gold.
Drill hole 151 returned thick zones of gold and silver mineralization, bottoming in 79.2 m of 1.03 g/t gold.
Allegiant has previously said it plans to publish an updated resource estimate for the Original Zone by the end of 2018.
“We’re very pleased with the results of the phase 1 resource expansion drill program,” Allegiant Chairman & CEO Robert Giustra has said. “The results demonstrate that our objectives of doubling the in-pit ounces and significantly reducing the strip ratio at the Original Zone remain in site,” he said.
“Further, the results verify that the Original Zone is a very large gold system. Drilling to date has not constrained the boundaries of the deposit and it remains open in almost every direction.
Allegiant is the new spin out company comprised what were previously the Western U.S. exploration assets of Columbus Gold Corp. (CGT-TSX, CBGDF-OTCQX),
Allegiant owns 14 drill-ready projects in the Western U.S., including 11 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.
Working through his private company Cordex Exploration LLC, Wallace has assembled a portfolio of projects headed by the 100%-owned Eastside property which hosts an inferred gold resource of 721,000 ounces of gold, and the Bolo property (also 100%-owned).
Allegiant said it plans to initiate a phase 2 resource expansion drill program at the Original Zone after it completes the high-impact discovery program that will see six projects drilled over the next 10 to 12 months.
On Friday, Allegiant shares eased 6% or $0.03 to 47 cents. The 52-week range is 75 cents and 32.5 cents.