The Gold Report - Sat, Apr 14, 2018

Coverage Initiated on Gold Firm with 'Successful Exploration Potential'

Michael Curran, an analyst with Beacon Securities Ltd., provided the investment thesis for this recent spinout company.

Allegiant's Eastside Project

An April 10 research note indicated that Beacon Securities Ltd. initiated coverage on Allegiant Gold Ltd. (AUAU:TSX.V; AUXXF:OTCQX) with a Speculative Buy rating and a CA$0.90 per share price target. The stock is currently trading at around CA$0.45 per share. "We consider Allegiant shares to be an attractive investment for exploration success, with a quality exploration team (with extensive experience and gold discoveries) working in a low political risk jurisdiction," wrote analyst Michael Curran.

Allegiant is a gold explorer with a Nevada focus but also assets in Utah, New Mexico and Arizona. It was spun out from Columbus Gold Corp. (CGT:TSX; CGTFF:OTCQX) on Jan. 18, 2018. "Several of these properties have above average potential for new gold deposit discoveries," Curran highlighted. "This U.S. portfolio. . . .can now get the attention it deserves."

To Allegiant's advantage, several of its projects are drill ready. Two rigs are currently drilling at Eastside, "with the goals of both increasing gold resources and reducing the strip ratio in the proposed open pit," Curran reported. "As an initial target, we believe the current 0.65 million ounce resource at Eastside can grow to 1.5 million ounces." Another benefit is the Eastside project is in Nevada, "one of the best jurisdictions globally for mining investment," noted Curran. In addition to Eastside, Allegiant plans to drill at some of its other properties during the next 12 months.

Curran purported the potential for rerating of Allegiant's stock, now listed on the TSX Venture Exchange, exists in the short term once the company finishes initial drilling at Eastside. Further upside, in terms of another rerating or heightened market interest, could likely come from the several other portfolio assets, which "have potential for new deposit discovery."

As far as the team to get the exploration done, the company has a "solid leader" in CEO Andy Wallace," Curran said. "He and his Cordex team have been credited with nine gold discoveries over the years in Nevada, the majority of which became gold mines (Marigold, Stonehouse/Lone Tree, Daisy, Sterling, Dee)." Russell Ball and Norm Pitcher, new members of the board, bring "extensive experience in all aspects of project development (exploration, feasibility and operations), having worked with producers such as Newmont, Goldcorp and Eldorado Gold."

About Allegiant's 2018 exploration program, Curran concluded that it "can deliver new discovery and/or expansions of existing resources. Longer term, we see potential to achieve even higher gold resources and achieve future mine development."

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Allegiant Gold and Columbus Gold. Click below for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Allegiant Gold, a company mentioned in this article. publishes interesting contributor articles in addition to its own content. We have not verified any of the above details.

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