Doug Leishman, a gold analyst at Yorkton Securities Ltd. in Vancouver, says his recommendation on
Bre-X is: ``Avoid. Period.''
``We thought for a long time that Bre-X was overvalued, based on projections of 70 million ounces at
Busang,'' he says. ``But now that the asset is in question, we say avoid. There are just too many red
lights flashing, and Bre-X has not come out with any facts to confirm its original results.''
Leishman still sees opportunities in the junior gold stocks. And like Taylor, he believes the current
negative mood has created some good buying opportunities.
Yorkton recommends Arizona Star and Bema Gold, which are involved in a promising property in
Chile; Northern Orion Explorations Ltd., which has gold and copper assets in Argentina and Cuba;
and Mar-West Resources, which has made some encouraging discoveries in Central America.
``If the outcome of the Strathcona report is bad, any exploration company without a well-defined asset
will be affected,'' Leishman says. |
