From Canaccord Web Site-Only Summary-Actual-Triple!
Current Reports
Golden Hemlock Explorations
May 28, 1997
(GHE : VSE : $1.20)
Drilling to resume on San Jose de Gracia gold project, Mexico with
million ounce plus potential
Speculative Buy
Company Statistics
52-Week Range:
$2.80-0.40
Common Shares O/S:
Basic
19.0M
Fully Diluted
23.5M
Directors and Officers
Own:
2.1M
Market Capitalization:
$22.8M
Average Weekly
Volume:
989,000
Long Term Debt:
Working Capital:
nil
$1.2M
HIGHLIGHTS
Golden Hemlock has just completed its final payment obligations and now
holds a 100% interest in the San Jose de Gracia gold project located 156 km
northwest of Culiacan, Sinaloa State, Mexico. There is an underlying 24.9%
net profit interest.
Between 1820 and 1910 over 1.0M ozs. of gold was produced from 67
known mines on the project. Key producing areas include Purisma Creek,
La Prieta, and Mina Grande, which combined account for well over
two-thirds of all production. Since the end of the Mexican Revolution to
present, exploration has been sporadic.
In late 1996, Golden Hemlock initiated a Phase I drill program focusing first
on the Tres Amigos sulphide vein targets. Generally grade and thickness
improved with depth. Values up to 14.2 g/t Au over 21.5 m (including a high
grade section of 54.2 g/t Au over 4.5 m) were reported. Golden Hemlock
has just initiated their second phase of drilling. A budget of 8,000 m of
diamond drilling will be initiated in the first week of June. Drilling will focus on
Tres Amigos and Purisma. Concurrently, trenching, sampling, mapping, and
airborne geophysics are planned for La Prieta and several other target areas.
At its current market cap of $22.80M the shares of GHE are discounting an
in situ Au resource, at US$50/oz., of 327,000 ounces net of working capital.
Thus, the million ounce plus exploration potential of this project provides very
favourable risk/return leverage. We recommend GHE as a timely
SPECULATIVE BUY.
Canaccord Capital Corporation may have assumed an underwriting
liability and/or entered into an agency agreement with respect to the
securities mentioned herein.
Graeme Currie
c 1997 Canaccord Capital
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