Dutch Flat



The Dutch Flat Project is located in Humboldt County, approximately 30 km (19 miles) northeast of the town of Winnemucca, Nevada. The property lies at the north end of the Battle Mountain Gold Trend. Allegiant holds a 1% NSR royalty on the project.

Dutch Flat geology is dominated by a crudely circular granitic body of Cretaceous age intruding Cambrian sediments. Shales and limy siltstones in the sequence are extensively hornfelsed with quartz veins and veinlets adjacent to the intrusive and along northeast shear and multiple fracture zones.

The Dutch Flat claims cover the entire historic Dutch Flat mining district which had modest recorded production of gold from both lode and alluvial sources during the early 1900's. Mercury production from 1936 to 1957 is recorded at 1,098 flasks.

Drilling totaling 4,383 m (14,381 ft) in 49 holes, was carried out by Amax and Brican Resources Ltd., in the 1980's. The drilling programs outlined a broad zone of low grade gold mineralization averaging approximately 0.34 g/t (0.01 opt) traceable for 1,200 m (4,000 ft), and open in both directions and at depth, along the southeast margin of the Dutch Flat granite.

Surface sampling by Columbus in 2006 returned higher grades up to 34 g/t (1 opt) gold along structures which were not systematically tested or evaluated in previous programs. In 2007, 17 shallow angle holes, totaling approximately 685 m (2,550 ft), were drilled in an east-west fence extending approximately 388 m (1,275 ft) across part of a previously drilled zone on the property with the objective of confirming the drilling results obtained by AMAX Gold in the late 1980's. Gold grades of 0.34 g/t (0.01 opt) or better were intersected in 11 of the 17 holes over intervals ranging from 1.5 m to 12.2 m (5 to 40 ft). A nugget effect was observed in 4 of the holes. The two best holes encountered 7.62 m (25 ft) of 0.44 g/t (0.013 opt) gold, including 1.5 m (5 ft) of 1.1 g/t (0.032 opt) gold, and 3 m (10 ft) of 1.9 g/t (0.055 opt) gold, including 1.5 m (5 ft) of 5.41 g/t (0.102 opt) gold.

In 2008, a Phase II, 3,133 m (10,280 ft) reverse circulation drilling program was completed in 24 holes. The program consisted of a second fence of shallow angle holes to offset the fence holes drilled in 2007, and a number of deeper holes to test the vein zones at greater depth and the possibility of a hidden gold skarn at the margin of the intrusive. The holes were drilled to depths from 75 m to 250 m (245 to 820 ft). All but 4 of the holes encountered at least 3 m (10 ft) of low grade gold. The two best intercepts were 44 m (145 ft) averaging 0.72 g/t (0.021 opt) gold and 48 m (160 ft) averaging 0.38 g/t (0.011 opt) gold.

The mineralization is still open to the north and to the south.

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