U.S. REPORT Hemlock options Nevada gold bet

Golden Hemlock Explorations (VSE) has signed a letter of intent to earn a 50% interest in Golden Quail Resources (VSE) gold property in San Bernadino Cty., Calif., 60 miles south of Las Vegas, Nev. Hemlock is currently planning the next phase of drilling for the property, where preliminary reserves stand at 6.8 million tons grading 0.077 oz. gold per ton. Preliminary recommendations call for a 15,000-ft. program to test the main shear zone along a strike length of 1,200 ft. and to a depth of 1,000 ft.

To earn a 50%, Hemlock must spend US$2 million over four years, subject to documentation and regulatory approvals. The company has arranged a private placement of 200,000 units at $1 each to finance the first stages of exploration.

The prospect, hosted by a sedimentary package, lies 15 miles from Viceroy Resource’s Castle Mountain project, where reserves stand at 38 million tons grading 0.048 oz. gold.