The Four Metals project is located in the Patagonia District 16 km (10 miles) north of Nogales, Santa Cruz County, Arizona. Subject to underlying royalties, Allegiant controls a 50% interest* in 16 claims and a 100% interest* in 24 claims that make-up the project.
The Patagonia Range contains a number of undeveloped porphyry copper, breccia copper, and polymetallic vein and replacement deposits within the famous Arizona Porphyry Copper Ore Province.
The Four Metals claims cover the Four Metals copper mine which has been intermittently investigated since the 1960's by Duval Copper, Noranda Mines, and most recently Cobre Copper. Past programs have included underground development, surface and underground core drilling, resource estimates, metallurgical test work, and various investigations of a leach copper mining operation at the site.
The Four Metals copper deposit is hosted within a crudely circular breccia pipe, about 305 m (1,000 ft) in diameter, intruding batholitic granite rocks. Mineralization consists of a shallow zone of supergene enriched chalcocite mineralization underlain by a larger body of primary mineralization containing chalcopyrite, pyrite, and molybdenite.
Various resource estimates have been carried out at Four Metals. The most recent and comprehensive, by Cobre Copper in 1991, estimated a high-grade resource (characterized as mineable) of 7,583,000 tons grading 0.83% copper and a geologic resource of 23,042,000 tons grading 0.42% copper (see cautionary note at bottom). Cobre also developed a conceptual mining scheme whereby the existing underground development, augmented by injection wells, would be utilized for an in situ copper leaching operation.
Based upon the Cobre Copper work the Four Metals copper project represents a potential near term opportunity for development of a small, low capital, copper mine in an area of favorable infrastructure and markets.
*On April 19, 2018 the Company and MinQuest Ltd. entered into an option agreement with Arizona Standard (US) Corp. (the “Four Metals Optionee”) and Barksdale Capital Corp. (“Barksdale”) granting the Four Metals Optionee an option to acquire a 100% interest in the Four Metals project located in Santa Cruz County, Arizona. The Four Metals Optionee is a wholly-owned subsidiary of Barksdale. The common shares of Barksdale are listed for trading on the TSX Venture Exchange. The Company and MinQuest Ltd. each own a 50% interest in 16 unpatented lode mining claims that, in addition to 24 unpatented lode mining claims that are 100% owned by the Company, comprise the Four Metals project. The option agreement requires the Four Metals Optionee to pay $290,000 (US$225,000) in staged payments over a five-year period. In addition, Barksdale will issue common shares with a total value of $290,000 (US$225,000) in staged issuances over the same five-year period. The cash payments and share issuances are shared equally with MinQuest Ltd. so that the Company will receive 50% of the cash and share payments.
Caution: A qualified person has not done sufficient work to classify the historical estimates contained herein as current mineral resources. Allegiant is not treating the historical estimates as current mineral resources and the historical estimates should not be relied upon.