Excitement Builds

Successful Diamond Drilling Program Affirms Eastside’s High-Grade Potential

East Pediment Drilling Highlights Eastside’s Discovery Potential

Core Drilling Begins in the High-Grade Zone

Mark Reichman

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Allegiant Gold Ltd.

Off to a Strong Start in 2022 
Allegiant Gold is a mid-stage exploration stage company with 10 highly prospective projects in the southwest United States, including 7 projects in the State of Nevada. Allegiant&#8217;s flagship project is Eastside, a district-scale project in Nevada with inferred resources of 1.4 million gold and 8.8 million silver ounces of inferred resources and significant potential to add size and scale.&nbsp; 
Allegiant recently completed over 6 kilometers of additional roads at the Eastside project with drilling to commence this month. The roads provide access to the high-grade zone within the original pit zone that was discovered during the company&#8217;s most recent drill program and will provide better access to the east pediment zone and western anomaly.
Reverse circulation (RC) drilling will focus on the east pediment zone and the western anomaly and entail 35 holes, including 25 holes at the east pediment zone with an average depth of 200 meters per hole, and 10 holes at the western anomaly with an average depth of 300 meters per hole. Core drilling will begin in May to test the recently discovered high-grade zone within the western edge of the original pit zone and will entail 7 core holes with an average depth of 600 meters.&nbsp;
Allegiant has increased the project&#8217;s potential with the recently amended plan-of-operations which expanded the permitted area to 3,600 acres enabling the company to test and drill new prospective targets in and around the original pit zone.
 M&amp;A Activity in Nevada
We think Eastside&#8217;s location in Nevada and significant expansion potential likely make it an eventual candidate for acquisition by a larger mining concern. In February, Centerra Gold Inc. (NYSE: CGAU) acquired Gemfield Resources, owner of the nearby Goldfield Development project located 30 miles south of Tonopah, Nevada, for US$175 million in cash along with a future milestone payment of US$31.5 million in cash or shares. Centerra contemplates a conventional, open-pit, heap leach mine project. A resource estimate is expected in the first half of 2023. Reasons for the acquisition included the potential to enhance Centerra&#8217;s growth profile and to improve its jurisdictional risk profile due to Nevada&#8217;s reputation as a premier mining jurisdiction globally.
Results for Quarter Ended December 31, 2021
Allegiant Gold reported a first quarter loss of C$(0.01) per share, compared to C$(0.00) during the prior year period and our estimate of C$0.00. First quarter operating expenses were above our estimate, including non-cash share-based payments. From a cash flow perspective, cash used in operating activities during the quarter ended December 31, 2021 amounted to C$(545,632), while cash generated from investing activities amounted to C$95,647 and included option payments received in the amount of C$320,750. Financing activities used C$(46,071) and the company ended the quarter with C$3,766,214 after accounting for the effect of exchange rate changes on cash denominated in a foreign currency.
Capital Structure and Liquidity
As of December 31, 2021, Allegiant Gold reported cash and short-term investments of C$3,766,214 and C$1,078,941, respectively. Lease liabilities amounted to C$77,096, of which C$28,782 are current. The company had no short or long-term debt. As of December 31, 2021, shares outstanding were 91,338,091.

Allegiant Gold Ltd. (AUAU:CA)

Off to a Strong Start in 2022

Fundamental Analysis:

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Excitement Builds (AUAU:CA)

Successful Diamond Drilling Program Affirms Eastside’s High-Grade Potential (AUAU:CA)

East Pediment Drilling Highlights Eastside’s Discovery Potential (AUAU:CA)

Core Drilling Begins in the High-Grade Zone (AUAU:CA)

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