Investment Commentary — Yorkton mining analyst lists top stock picks for 1996

With 1996 shaping up to be another record year for North American stock markets, investors are searching for low-priced issues that have potential for significant capital gains.

This trend forms the basis of a report by Douglas Leishman, a mining analyst with Yorkton Securities, which examined exploration companies with shares priced between 35 cents and $7.25. These companies are seen as having a reasonable chance of meet-ing with exploration or development success, and are further characterized by strong management and large treasuries.

Based on these factors, Leishman concludes that eight companies — Argosy Mining (VSE), Delta Gold Mining (VSE), Essex Resource (VSE), Gitennes Exploration (ASE), Mar-West Resources (VSE), Pacific Bay Minerals (VSE), Richmont Mines (TSE) and Stratabound Minerals (ASE) — have potential for capital gains in 1996.

Particular conclusions are as follows:

* Originally, Leishman recommended Argosy, based on its involvement in grassroots diamond exploration in Zimbabwe. However, the company picked up projects in Eastern Europe and broadened its exploration horizons, making it a good bet.

* Delta Gold has a large property position in Nevada that exhibits strong geological potential. With cash resources of 55 cents per share and solid management, Delta can expect its shares to appreciate in value.

* Essex Resource holds interests in properties in the Voisey’s Bay district of Labrador, as well as in eastern Bolivia and California. The large number of active exploration projects in these areas will attract considerable investor interest, and any exploration success will ensure market activity.

* With increased production at its Francouer mine, and with the Nugget Pond project coming on-stream in 1997, Richmont Mines will undergo a rapid rise in gold production, with minimal share dilution. As a result, Leishman expects a higher rating for Richmont shares over the next 12-18 months.