American Gold. Allegiant Gold Ltd.

Transcription

1 American Gold Allegiant Gold Ltd. September 2018

2 FORWARD LOOKING STATEMENTS This presentation contains forward-looking information within the meaning of applicable U.S. securities laws and forward-looking information within the meaning of applicable Canadian securities laws, which are referred to collectively as forward-looking statements. The United States Private Securities Litigation Reform Act of 1995 provides "safe harbor" for certain forward-looking statements. Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as seek, "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", or similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking statements in this presentation including, but are not limited to statements and information regarding: Allegiant Gold Ltd. s ( Allegiant ) exploration plans for its gold exploration properties, future exploration and development plans, including anticipated costs and timing thereof, Allegiant s plans for growth through exploration activities, acquisitions or otherwise, and expectations regarding future maintenance and capital expenditures, and working capital requirements. Such forward-looking statements are based on a number of material factors and assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results or performance or achievements or industry results to differ materially from those anticipated in such forward-looking information. Readers are cautioned not to place undue reliance on forward-looking statements contained in this presentation. Some of the known risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements are described in the section entitled Risk Factors in Allegiant s Listing Application, dated January 24, 2018, as filed with the TSX Venture Exchange and available on SEDAR under Allegiant s profile at Actual results and future events could differ materially from those anticipated in such statements. Allegiant undertakes no obligation to update or revise any forward-looking statements included in this presentation if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law. Most of the forward-looking statements contained in this presentation are collected from other disclosure sources of Columbus Gold Corp. and of Allegiant, including without limitation news releases, information circulars, technical reports, and other regulatory and securities exchange filings. Allegiant recommends and expects that you will review the applicable forward-looking statement disclaimer language in such original sources for additional information on the forward-looking statements contained in this presentation. This presentation does not constitute an offer to sell, or solicitation to buy, any securities, and no securities will be offered nor will solicitations of offers to buy be made, by any person in any jurisdiction in which it is, or to persons to whom it is, unlawful for such person to make such an offer or solicitation. Andy Wallace is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists and is the Qualified Person under NI Standards of Disclosure for Mineral Projects, that has reviewed and approved the technical content of this presentation. 2

3 ABOUT ALLEGIANT ALLEGIANT is one of the most active gold exploration companies in the Western United States. 14 drill-ready projects in the U.S., 11 are located in miningfriendly Nevada Strategic investment from Goldcorp to fund high-impact discovery drill program Six projects to be drilled over months, all offering new discovery opportunity Valuation underpinned by Eastside gold project, large resource with a clear path to doubling in size Strong board and mine-finding management team 3

4 MANAGEMENT ALLEGIANT has assembled a first-class board of directors and management team. Chairman & CEO Robert Giustra, negotiated agreements with many of the world's top mining companies Director Russell Ball, former CFO of Goldcorp and Newmont Director Norm Pitcher, past President of Eldorado Gold VP and Director of Allegiant Gold (U.S.) Andy Wallace credited with five multi-million ounce gold discoveries in Nevada 4

5 ABOUT ANDY WALLACE Andy Wallace: An exceptional track record. VP and Director of Allegiant Gold (U.S.), a subsidiary of ALLEGIANT Principal of privately held Cordex, ALLEGIANT s exclusive exploration partner Cordex founded by legend John Livermore (discovered Newmont s Carlin Mine) Cordex credited with eight gold mine discoveries in Nevada Five of these discoveries were under Andy Wallace s leadership Mine Current Owner Total Ounces of Gold * Current Gold Reserves & Resources * Past Gold Production* Stonehouse/Lone Tree (Newmont) 12M 5M oz. 7M oz. and still producing Marigold (Silver Standard) 4.6M 3M oz. +2M oz. and still producing Pinson (Waterton) 3.2M 2.1M oz. Ultimate production of 1.1M oz. and still being explored Dee (Premier/Barrick) 2.7M 220,000 oz. Ultimate production of 1.1M oz. Florida Canyon (Rye Patch) 2.3M 263,600 oz. 2M oz. and still producing *All figures approximate. 5

6 NEVADA ALLEGIANT owns 14 drill-target ready projects in the U.S., 11 are located in mining-friendly Nevada. o o o o Politically Stable Very Favorable Mining Jurisdiction Prolific Gold Producer Streamlined Permitting Enacted in 2017 Cordex founder John Livermore discovers the Carlin Mine in 1961 Nevada ranked 3rd in 2017 for most appealing mining jurisdiction in the world 1 In 2016, the U.S. was the 4 th largest gold producing nation in the world; 74.6% of which came from Nevada 2 Nevada gold production of 4.55 million ounces accounted for 5.0% of total world mine output 2 in 2016 Nevada has historical gold production of million ounces through to the end of Source: Fraser Institute Annual Survey of Mining Companies 2017 (published February 2018). 2 Source: US Geological Survey, Mineral Commodity Summaries, January 2017 (estimates for 2016). 3 Source: Nevada Bureau of Mines & Geology, The Nevada Mineral Industry 2014 & US Geological Survey, Mineral Commodity Summaries, January 2017 (estimates for 2016). 6

7 DISCOVERY DRILLING Strategic investment by Goldcorp to fund a high-impact discovery drill program, 6 projects to be drilled over months. Red Hills Nevada North Brown Nevada Monitor Hills - Nevada Hughes Canyon - Nevada Adularia Hill - Nevada Silverdome Utah 7

8 DRILLING PLANS Projects are new prospecting discoveries, they have not been recycled, and they all offer new discovery opportunity. Aug. 18 Sept. 18 Oct. 18 Nov. 18 Dec. 18 Jan. 19 Feb. 19 Mar. 19 Apr. 19 May 19 Jun. 19 Jul. 19 Red Hills North Brown Monitor Hills Hughes Canyon Adularia Hill Silverdome All of the drill targets have been identified and delineated by Andy Wallace 6 projects to be drilled over the next months 8-12 holes per project, totaling 58 holes in 13,350 metres of drilling 8-hole drill program currently underway at Red Hills 8

9 DISCOVERY DRILLING RED HILLS Highly-prospective intrusive target that has never been drilled. 100% owned by ALLEGIANT, located 56 km northeast of Ely, Nevada Ground magnetic survey has identified a large anomaly, interpreted to be buried intrusive rock Target represents a highly-prospective porphyry copper-molybdenum target, with the margins having potential for base and precious metal skarns and replacements 8-hole reverse circulation drill program, totaling up to 2,200 metres, underway 9

10 RED HILLS Discovery Drilling MAGNETIC TARGET 10

11 DISCOVERY DRILLING NORTH BROWN Prospecting discovery located in prolific Battle Mountain Gold Trend. 100% controlled by ALLEGIANT, located ~19 km southwest of Eureka Battle Mountain Gold Trend hosts some two dozen gold mines and over 100 million ounces of gold Favorable host rocks for Carlin-Style deposits found at North Brown Samples up to 6.4 g/t gold in float Samples up to 4 g/t gold in rock chip ALLEGIANT plans to test North Brown with 8 holes, totaling up to 1,700 metres 11

12 DISCOVERY DRILLING NORTH BROWN 12

13 DISCOVERY DRILLING Other projects to be drilled over months. Monitor Hills Nevada Carlin-type gold mineralization 8 targets where outcrop exceeds 1 g/t gold Also several gold anomalies up to 2.45 g/t Hughes Canyon - Nevada Gold assays up to 4.9 g/t in outcrop Gold over 60 m widths in channel samples Priority CSAMT target below geochem Adularia Hill Nevada New target at Eastside 12-km south of Original Zone One of many targets at Eastside Silverdome Utah South of Tintic and Crypto mining districts Sampling up to 85 oz. per tonne Ag High-priority geophysical targets identified 13

14 EASTSIDE GOLD PROJECT Has the hallmarks of a very large gold system in one of the world s best mining jurisdictions. Large Inferred resource with a clear path to doubling in size District scale and located in an area of excellent infrastructure Also hosts historic resources and many additional undrilled targets Phase 1 resource expansion drill program successful in expanding the dimensions of the Original Zone 14

15 EASTSIDE HIGHLIGHTS District-scale, over 67 square kilometres o 100% controlled and on BLM land o o 32km West of Tonopah 65km Southwest of Kinross Round Mountain mine Numerous targets identified; drilling to date focused almost exclusively on the Original Zone Original Zone hosts a pit-constrained Inferred Resource of 721,000 gold equivalent ounces 1 ; remains open in several directions and at depth Located 32 km from Tonopah, Nevada on Highway 95. Metallurgical testing indicates that both oxide and sulphide mineralization are amenable to heap leaching Also hosts historic resources of 272,153 ounces gold 2 (11.8 M 0.82 g/t Au) and numerous exploration targets 120 KV power transmission line passes through the property. 1 Resource completed by Mine Development Associates ( MDA ) and Technical Report available on SEDAR. For more details, refer to press release dated December 5, This historical estimate is not in accordance with NI Allegiant is not treating these historical resources as current mineral resources and cautions that this estimate should not be relied upon. A Qualified Person has not done sufficient work to classify the historical resources as current mineral resources. 15

16 EASTSIDE EXPLORATION TARGETS In addition to the Original Zone, other exploration and discovery opportunities include: 6 geochemical targets, including Adularia Hill (one of the six targets to be drilled) 3 pediment targets 1 geophysical target Berg Zone, Black Rock Zone and Castle Zone o Host historic resources of 272,153 ounces gold 1 o 11.8 M 0.82 g/t Au Past-producing Boss Mine 1 This historical estimate is not in accordance with NI Allegiant is not treating these historical resources as current mineral resources and cautions that this estimate should not be relied upon. A Qualified Person has not done sufficient work to classify the historical resources as current mineral resources. 16

17 DRILLING AT THE ORIGINAL ZONE Looking northeast 17

18 PHASE 1 DRILL PROGRAM Extended the Original Zone 300 metres to the west and 400 metres to the south, where it still remains open in both directions The holes were drilled in areas currently classified as waste in the pit-constrained resource estimate, below the planned pit or below the pit layback The results should improve the economics as they convert material previously considered waste into ore, thus lowering the strip ratio of the pit and ultimately mining costs 18

19 ORIGINAL ZONE DEPOSIT Section 4,228,740N $1,300 Pit Outline and Mineralized Shells As Determined by MDA in 2016 Mineralized Shells As Interpreted from 2018 Drilling 19

20 ORIGINAL ZONE DEPOSIT Section 4,228,980N $1,300 Pit Outline and Mineralized Shells As Determined by MDA in 2016 Mineralized Shells As Interpreted from 2018 Drilling 20

21 ORIGINAL ZONE RESOURCE ESTIMATE Original Zone Initial Resource Estimate 1 Cut-off g/t Gold Tonnes Grade g/t Gold Ounces Gold Grade g/t Silver Ounces Silver ,620, , ,016, ,780, , ,999, ,130, , ,936, ,320, , ,653, ,500, , ,410,000 Castle Zones (Castle, Berg, and Black Rock) Historical Resource Estimate 2 Cut-off g/t Gold Tonnes Grade g/t Gold Ounces Gold ,177, ,153 1 Resource completed by Mine Development Associates ( MDA ) and Technical Report available on SEDAR. For more details, refer to press release dated December 5, The historical resource estimate for the Castle gold project was completed by James D. Greybeck, Senior Geologist for Cordex Exploration Co. in April, For more details, refer to press release dated January 19,

22 PEER COMPARISON ALLEGIANT s valuation based on the Original Zone in-pit resource, doesn t include historic resources or other projects. (M+I) (M+I+I) Shares Market Measured Total Gold AMC/ O/S Cap AMC (1) Indicated Resource Grade M+I+I oz Company Project Location Stage M US$MM US$MM 000oz (2) 000oz g/t US$/oz (3) Corvus Gold North Bullfrog Nevada PEA 106 $212 $206 1,760 2, Gold Standard Ventures Railroad/Pinion Nevada Resource 254 $383 $ , Integra Resources Delamar Idaho Resource 48 $33 $25-3, Liberty Gold Kinsley Nevada/Turkey Resource 177 $62 $59 2,218 3, Midas Gold Corp. Stibnite Idaho PFS 234 $172 $201 5,610 6, Northern Empire Res. Sterling Nevada Resource 67 $66 $ Otis Gold Kilgore Idaho Resource 162 $23 $ Timberline Resources Eureka Nevada Resource 44 $5 $ TriMetals Mining Gold Springs Nevada PEA 306 $20 $ West Kirkland Hasbrouck Nevada PFS 368 $19 $ Mean 43 ALLEGIANT Eastside Nevada Resource 60 $22 $ Source: Company disclosure, ThomsonReuters Eikon data (1) AMC calculated as Market Cap plus Long-Term Debt minus Working Capital (2) M+I resources include only NI or JORC compliant gold (3) AMC = Mkt Cap + LT debt - Cash 22

23 Corporate Information Share Price $0.48 Shares I/O 60,811,482 Warrants 7,267,604 Options 5,215,000 Shares FD 73,364,086 Market Cap. ~$29 million 52 week hi/low $0.75/$0.325 Avg. daily vol. ~150,000 Corporates % Owned Goldcorp 9.7% Columbus Gold 8.6% IAMGOLD 6.3% Nordgold 3.9% 23

24 ANALYSTS AND NEWSLETTER WRITERS Mining Analysts Michael Curran, Beacon Securities Newsletter Writers and Commentators Cory Fleck Korelin Economics Report David Forest International Speculator Mickey Fulp The Mercenary Geologist Jeb Handwerger Gold Stock Trades Nick Hodge The Outsider Club Kai Hoffman Investor Magazin Byron King Jim Rickards Gold Speculator James Kwantes Resource Opportunities Thibaut Lepouttre Caesers Report Brien Lundin Gold Newsletter Bob Moriarty 321 Gold Gwen Preston Resource Maven 24

25 MANAGEMENT AND BOARD OF DIRECTORS Robert Giustra Chairman & CEO Former investment banker with over 25 years of experience creating, financing and leading junior mining companies. Andy Wallace - VP and Director of Allegiant Gold (U.S.) Credited with 5 gold mine discoveries in Nevada, including Marigold, Stonehouse/Lone Tree, and Daisy. Russell Ball - Director Former Chief Financial Officer of both Goldcorp and Newmont, two of the world s largest gold producers. Norm Pitcher - Director Former President of Eldorado Gold, a mid-tier gold producer with a market capitalization exceeding a billion dollars. Peter Gianulis - Director President of Carrelton, an asset management and private equity firm focused on natural resource companies. Andrew Yau - CFO Over 10 years experience working with publicly listed natural resource companies in accounting and finance roles. Blaine Monaghan - VP, Corporate Development Track record of creating value: True Gold, Canplats, Western Prospector, Nu Energy, and Wheaton River Minerals. Jorge Martinez - VP, Communications & Technology Over 20 years experience in communications and technology, particularly in the natural resource industry. 25

26 ABOUT ALLEGIANT ALLEGIANT is one of the most active gold exploration companies in the Western United States. Strong board and mine-finding management team Strategic investment from Goldcorp to fund high-impact discovery drill program Six projects to be drilled over months, all offering new discovery opportunity Valuation underpinned by Eastside gold project, large resource with a clear path to doubling in size 26

27