Updated Inferred Resource Estimate Of 1.1 million Gold-Equivalent Ounces At Flagship Eastside Project

VANCOUVER - Allegiant Gold Ltd. reported 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; and 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.

The updated resource estimate was conducted by Mine Development Associates (MDA) 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. 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. 

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 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.

“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,” said 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. 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.

The company’s address is 1090 Hamilton Street, Vancouver, BC V6B 2R9, (604) 634-0970, www.allegiantgold.com.