Analysts predict hot summer at Voisey Bay

Four prominent mining analysts agree that the Voisey Bay

nickel-copper-cobalt discovery will continue to be the hot spot for market activity this year.

The experts Douglas Leishman of Yorkton Securities, Don Poirier of McDermid St. Lawrence Chisholm, Jonathan Challis of C.M. Oliver & Co. and Douglas Hurst of Sprott Securities expressed their views at the International Mining Investment Conference held here recently.

Diamond Fields Resources (TSE) continues to generate spectacular ore-grade intercepts at Voisey Bay, and the question on the lips of most market-watchers is not “Is it a mine?”, but rather “How big will the mine be and what is it worth?”

This climate of enthusiasm has boosted the share prices of juniors with ground in the area, although all four analysts agree that the easy money has been made and that investors should not be afraid to take some profits.

Poirier, who sees a 4-to-5-month speculative market ahead, is concerned that some investors have been buying up the stock of companies active near Voisey Bay while knowing next to nothing about these issues.

On the subject of choosing which stock to buy, all four analysts emphasized that investors should give preference to companies with a reputation for strong management. As Challis explained, if a company has poor management, it will have trouble raising money. Indeed, added Hurst, a poorly managed company can fall flat on its face even if it has a good property.

Leishman continues to favor Diamond Fields, even at its recent new highs. He believes the share price will go higher as the company proceeds with its plan of becoming a fully integrated mining firm. He also recommended Miramar Mining (TSE), which he regards as having good projects and a very strong treasury.

Poirier, on the other hand, is keen on Aurizon Mines (TSE), which has a half interest in

the 40,000-oz.-per-year Sleeping Giant mine in Quebec; a potential producer with its Beaufor gold project in northwestern Quebec; and plenty of “blue sky” with its La Reyna property in Mexico.

He also gave the thumbs-up to Eldorado (TSE), which he expects will achieve annual gold production of 100,000 oz. by 1998, and to USMX (NASDAQ), which has a healthy treasury and several projects with potential for near-term production.

Challis is bullish on companies with plays in exotic parts, including Northern Orion Explorations (VSE), which recently acquired properties in Argentina and Cuba; Argentina Gold (VSE), which holds interests in gold projects in Argentina; and International Pursuit (TSE), which is drilling its Mina Don Jose deposit in the Philippines.

The Mina Don Jose contains more than 100 million tons grading 0.47% copper and is open to expansion on all sides. International Pursuit will attempt to expand the size of the resource, as well as provide information on gold, silver and molybdenum values which were not previously tested.

Hurst gave the nod to International Curator Resources (TSE) for its copper-cobalt property interest in Mexico; Summo Minerals (VSE) for its oxide copper projects in the U.S.; and Aurizon for its low-cost production.