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| These are heady times for gold bugs.
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| With the yellow metal trading at all-time highs, gold bugs and generalist investors alike are flocking to the sector and finding all the bargains are long gone.
Perhaps they should’ve looked just a bit harder.
Because there’s one company that — thanks to a smart move by management — is not only still a bargain, but warming up on the launch pad to take off at any moment.
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| This remarkable opportunity is Allegiant Gold (AUAU.V; AUXXF.OTC) — a junior explorer/developer with a still-tiny market cap...despite boasting well over a million ounces in the midst of Nevada.
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| If that sounds hard to believe, you’re about to see why and how this ground-floor bargain came about.
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| With an upcoming name change from Allegiant Gold to A2 Gold, the company will completely rebrand and reset, with a revitalized corporate team, a treasury filled by eager (and long-term) backers…and a 1.4-million-ounce gold deposit in the midst of Nevada that has been almost completely overlooked by the market.
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| It’s a rebrand that’s perfectly timed for the new gold bull market, one executed by a management team that has been waiting for the market to turn, hesitant to dilute shareholders with drill results that, while advancing and building the deposit, would not have been sufficiently rewarded by the previously disinterested market.
That’s about to change now, as the company is going to drill, drill and drill to expand and improve its already large gold deposit. And the drilling just started a few days ago…
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| Nevada:
The Premier Mining Destination
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| One of the most compelling parts of Allegiant Gold’s story is simply the Nevada address of its flagship Eastside project.
Long regarded as the preeminent mining destination in the world, the state is enjoying a mining renaissance that promises to advance its status as the fifth largest gold producing region in world.
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| Allegiant Gold's Nevada focus places it in one of the world’s most productive gold regions.
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| Kinross, a company whose gigantic Round Mountain Mine lies just across the valley from Eastside, has taken a strategic 9.9% stake in Allegiant Gold and is part of its Technical Committee (and has recently increased their stake in the Company) providing much needed guidance and direction on the project.
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| Kinross recognizes the potential of Eastside: Both Eastside and Round Mountain lie along Nevada’s Walker Lane Trend, and Round Mountain has produced over 16 million ounces of open-pit gold so far.
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| The upshot for Allegiant Gold is that it not only has the backing of a major, but it also benefits from the extensive mining infrastructure in the state.
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| 1.4 Million Ounces Of Gold...So Far
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| Eastside has already shown itself to host a major, 1.4-million-ounce inferred gold resource but the last resource report was done in 2021 when gold was $1700/ounce. A new resource report will be coming out after the upcoming drill program is completed.
That resource is contained within Eastside’s McIntosh deposit (1.09 million ounces gold and 8.7 million ounces silver) and its Castle deposit (314,000 ounces of gold).
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| Allegiant Gold’s Eastside project contains 1.4 million ounces of gold and 8.8 million ounces of silver and includes an exciting High Grade zone at depth.
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| Both deposits are amenable to open-pit mining, and McIntosh also features a High Grade zone at depth that could eventually be mined as an underground operation.
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| Discovered in late 2021, the High Grade zone has yielded 2.6 g/t gold over an eye-popping 148 meters, plus 39 g/t over 3 meters and 3.4 g/t over 15.2 meters.
This is one of the most potentially impactful targets in all of mining today: Hitting high-grade gold like this is the Holy Grail of Nevada exploration.
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| The potential is obvious because not only has this zone been discovered, but it also remains open in several directions. Interestingly, there has been little drilling at depth, despite some holes ending in rich mineralization.
Bottom line: McIntosh has a chance to grow much larger as Allegiant Gold begins to drill both that target and Castle in the days just ahead.
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| Cashed Up, Tightened Up And Ready To Drill
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| During the long malaise in the mining market, Allegiant Gold’s management team made the conscious decision to stop drilling the Eastside project.
With investors unwilling to reward good drill results, there was simply no reason to dilute shareholders by raising exploration money in a down market.
But that’s all changed now, for the mining market...and for the re-set Allegiant Gold.
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| First, a recently closed, C$10.5 million financing (in addition to the $3.5M they raised a few months ago) has given Allegiant Gold all the money (over $13M in the treasury) it needs to launch an extensive, 18,000 meter drill program. More impressively, this was accomplished with investors agreeing to a 12-month hold period (versus the typical 4 month hold period for financings)
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| The goal: Outline additional resources that — in addition to today’s much higher gold price that will lower the cut-off grade of the current resource — will bring the project’s total to well over two million ounces.
That will get the market’s notice in a very big way.
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| Second, a recent 2:1 share rollback has resulted in a drum-tight share structure for Allegiant Gold.
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| And finally, a big addition to the company’s story is the participation of Javier Reyes, a key player in the junior sector who has a hot streak going thanks to his turnaround of Luca Mining.
Javier was recently named to Allegiant Gold’s board and has been brought on to move the company forward alongside company CEO Peter Gianulis.
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| Perfect Timing
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| It all adds up to a catalyst-filled future for Allegiant Gold that will include:
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- Drill results to grow the already-large gold resource, including further definition of the High Grade zone at McIntosh.
- An updated NI 43-101 resource for Eastside that could result in a very significant increase of its gold-silver resource base and upgrade some of that resource to the indicated category.
- A major expansionary drill program will get started after the completion of a project-wide geophysics program.
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| Again, gold is trading at all-time highs and looks likely to continue forging higher from here. In this environment, there are few mining stock bargains left.
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| Considering its still-small market cap...existing large gold resource in Nevada...and a parade of major catalysts on the way... Allegiant Gold is obviously primed for a big re-rating.
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| If you like where gold is headed, you’ll want to start your research on Allegiant Gold now.
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| CLICK HERE
To Learn More about Allegiant Gold Corp.
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