ALLEGIANT Announces Updated Inferred Resource Estimate of 1.1 million Gold-Equivalent Ounces, an increase of 52% at Flagship Eastside Project in Nevada - Seite 3

Preliminary metallurgical studies conducted by Kappes, Cassiday and Associates, in Reno, Nevada, 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. 

Eastside Exploration and Strategy
“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,” commented 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. As announced back in December, 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.

Historical Estimate*: Castle Claim Block
The Castle claim block covers an area of 9.6 sq. km and is located 13 km south of the Original Zone but still within the Eastside property.  The Castle claims are covered by shallow alluvium of 10-30 metres with potential for increased resources and contain a near surface historical* oxidized resource estimate of 273,173 gold ounces as outlined in the table below: