The Clara Moro gold project is located approximately 130 km (80 miles) northwest of Phoenix, Arizona. Allegiant owns a 1% NSR royalty on the project.
Clara Moro covers exposures and the down-dip extension [covered by thin gravels of 3-15 m (10-50 ft)] of a flat-dipping, detachment fault separating a lower plate of Precambrian metamorphic rocks from overlying Tertiary sandstones. Gold occurs both in the sandstones at the detachment fault and along high angle structures cutting the sandstones above the detachment fault. Gold grades in surface sampling are high with numerous chip samples running from 3.4 g/t to 18.75 g/t (0.10 to 0.60 opt) gold. The mineralization is erratically distributed along the greater than two miles of exposed strike length of the detachment fault.
Clara Moro has been drilled by Nevada Pacific, Phelps Dodge, and Echo Bay. Drilling indicated the gold mineralization on the property to be erratic in grade and thickness. The best hole was Nevada Pacific hole #1, which had 14 m (45 ft) of 3.78 g/t (0.11 opt) gold from surface.
The down-dip extension of the detachment fault has never been tested by drilling and therefore presents an excellent target for gold mineralization.