DECEMBER 22, 1997

Ashanti Goldfields (ASL on NYSE ) Accra, Ghana Tel: (212) 697-9191. Price Dec.19/97:$9. 52 week price range: $15.62-6.50. Mentioned at $22.25 on April 15/96. Dismal stock performer so far. Major gold producer, producing about 1.1 million oz/year at a cash cost of $263/oz. Latest new mine, Siguiri in Guinea, West Africa, to begin production at 150,000 oz/year July, 1998, proven & probable reserves 2.8 million oz, 15 year life, 50% production hedged at $400. The Geita mine in Tanzania, with an indicated reserve of 3 million ounces, is at the feasibility stage. Altogether, Ashanti has reserves of about 25 million ounces of gold, this after having already produced 20 million ounces at Obuasi, Ghana over the last 100 years. A realistic price target of $12 for its shares over the next 12 months appears to be a reasonable target. The company recently paid an interim dividend of $0.125/sh. There are 108 million shs outstanding.

Bonus Resource Services Corp (BOU on TSE, VSE), Calgary, AB. Tel: (403) 347-3737. Price: Dec 19 15/97: $5.25, 52-week range: $7.75-2.700. First mentioned at $0.76 on May 15/96. Acquired for $8.4 million the assets of Superior Well Servicing of Australia bringing in a further 4 double service rigs and opening up an equity interest in a further 3. Co is already the largest service rig operator in Canada operating 135 service rigs in the oil patch. For the 9 month period ended Sept 30, revenues were $70.2 million vs $9.7 million, and net was $6.3 million vs $0.9, or 22 cents/sh vs 8 cents. There are 26.6 million shs out. Stock has gone through a price correction and a return to the $7.50 level over the next 6 months appears feasible.


Calvalley Petroleum Inc. (CVI.A on ME) Calgary AB Tel:(403) 297-0490. Price Dec 15/97: $1.87 52 week range: $2.99-1.60. First mentioned at $2.90 on Feb 14/97 at $2.90. Company drilled a successful Keg River oil well at Rainbow Lake in NW Alberta, currently producing at 250 bopd. Five additional locations have been identified, two of which should be completed shortly. Two horizontal wells have been completed in SE Saskatchewan and have been tied in bringing the production in this area to 1400 bopd of light crude. Company's production now exceeds 2000 bopd compared to 990 during the quarter ended Sept 30. Company could be an overlooked, undiscovered growth one.

Canadian Medical Laboratories Limited (CLC on TSE), Mississauga, ON. Tel: (905) 624-0440. Price Dec 19/97: $7.10, 52-week range: $8.75-4.60. First mentioned on Aug 19/97 at $6.20. Company operates licensed medical diagnostic laboratories and is branching out to do contract research and development for product development for the US and Canadian pharmaceutical, biotechnology and medical device companies. For the year ended Sept 30/97, revenues were $71.0 million vs $53.9 million and net was $7.6 million vs $6.2 million, or $0.49/sh vs $0.61/sh on fewer shs. out. There are now 15.8 million shares outstanding. Some analysts are calling for eps of 60 cents this year. Stock looks cheap compared with competitors. A price target of $12 could be aimed for over the next year.

Coleraine Inc. (CRI on ME), Montreal, QC. Tel:(514) 866-0340 Price Dec 19/97: $0.13, 52 week range: $0.75-0.13 First mentioned at $0.42 on Feb 14/97. CRI has an active gold exploration program in Perron township, NW Quebec. Three parallel zones will be drill tested in late January through an 8,000-metre program. Some of the structures appear to extend 1.2 km in length. This junior has $2.8 million in the treasury and has 44.1 million shs out. This low-priced, but speculative, stock could act favourably on good drill news.


Gold Reserve Corporation (GLR on TSE, GLDR on NASDAQ).Spokane, WA. tel:(509) 623-1500. Price Dec 19/97: $4.35, 52 week range: $15.60-2.35. First mentioned at $11.95 on July 15/96, and most recently on Nov 27/97. Company has announced that it has now been given the Brisas hardrock mining title. It had , up until recently, only the alluvial rights, but most of the $60 million invested so far by the company involved defining a mineralized resource, contained in hard rock, of 7.3 million ounces of gold and 950 million lbs of copper. GLR has a cash position of about US$30 million and is proceeding with its pre-feasibility study. There are 22.9 million shs out. The stock has recovered some of its major drop, from the $2.35 level, but now under a lower gold price scenario a more realistic return in trading price levels of $8 to $10 appears warranted.

Golden Knight Resources Inc. (GKR on TSE, ME & VSE) Vancouver, BC Tel:(604) 689-3846. Price Dec.19/97: $3.35. 52 week range:$6.75-2.25. Mentioned at $8.20 on May 15/96 and most recently on Oct 16/97. Company recently reported significant gold mineralization on its 400 sq km Seguenega concession in Burkina Faso. Company's major asset is its 17% interest in the Tarkwa open pit gold property in Ghana, slated to enter production mid 1998. GKR's share of gold reserves at Tarkwa is conservatively estimated at 2 million ounces and could very well be closer to 3. The company also has good exploration ground elsewhere in Ghana. Its interest in the Cross Lake polymetallic discovery at Cross Lake near Timmins Ontario is also taking on potential. The shares at current trading levels appear to be much undervalued. A more realistic level would be in the $7 range. Surprising that Teck Corporation who already own 40% of GKR does not take advantage of the low price to increase its ownership level. There are 26.9 million shs outstanding.

Major Drilling Group International Inc. (MDI on TSE). Moncton, NB. Tel: (506) 857-8636. Price Dec 19/97: $20.00, 52-week range: $36.80-12.60. First mentioned on August 20/97 at $22.80, and most recently on Nov 27/97. Major reported 2nd Q ended Oct 31/97 revenues of $44.2 million vs $22.0 million last year and net of $3.0 vs $2.7 million, or 30 cents vs 49 cents, on fewer shs. For the 6 mos, revenues were $81.8 vs $41.7 and net $7.6 million vs $5.0 million, or 82 cents/sh vs 90 cents, again on fewer shs out. The company has 10.2 million shs outstanding as opposed to 5.6 million at this time last year. The price of the shares has dropped considerably from its high over the last month for two reasons: profit margins in the 2Q were narrower than in the 1st and, secondly, the perception that because of lower gold prices there will be a curtailment of exploration. Major is taking advantage of this by making further acquisitions, last month's purchase of Midwest Drilling being an example of this. The stock continues to appear to be good for long term growth.


Royal Aviation Inc. (ROY on ME and TSE), Montreal, QC, tel (514) 828-9000 ext 2270. Price Dec 19/97: $5.85, 52-week range: $6.65-2.07. This is the first mention of Royal. The company is involved mainly in tourist charter service from Canada to Florida and to European destinations and operates out of Montreal, Toronto, Winnipeg and Vancouver. Last year it purchased Toront-based CanAir Cargo, consisting of 6 Boeing 737's. It has taken three of these to use on week-ens for tourist flights. All told, Royal's fleet consists of 6 737's, 4 727's, 3 Airbus 310 and 2 L-1011's. A fourth Airbus 310 will be acquired to replace the two aging 1011's. The company has also entered into hotel management by buying two-thirds of Royal Resorts Inc. The other one-third is owned by a former Club Med manager. To begin with it will manage three club-type hotel complexes in Mexico. This will be followed with opening one new site each quarter in such places as Cuba, Dominican Republic and Venezuela. It expects this division to account for $50 million in additional revenues in two years. Revenues for the 3 months ended Oct 31/97 were $67.9 million vs $46.5 million. For the 6-month period, revenues were $128.1 million vs $93.1 million. EPS for the 6 mos were 75 cents, but included a gain on the disposal of aircraft. However, gross operating margins have improved to 16.1% from 12.3%. The company has $40 million in cash and long term debt represents 25% of total assets. Royal has 13.9 million shs out.

Viceroy Resource Corporation (VOY on TSE), Vancouver, BC, tel: (604) 688-9780. Price Dec 19/97: $2.45, 52-week range: $7.15-2.05. Company is a mid-size gold producer with two operating mines: the relatively high-cost 75%-owned Castle Mountain in California and the lower-cost 100%-owned Brewery Creek mine in the Yukon. Annual production from both is expected to exceed 200,000 ounces. Viceroy has extended its forward sale of gold program for 344,000 ounces at US$406, through 1999. Due in great part to this hedging, the company reported non-taxable earnings for the Q ended Sept 30/97 of 7 cents/sh. On an annualized basis, this could attain 18 cents. The company has a working capital of $48 million which it can apply to growing the company. There are 50.8 million shs out. A near term price target of $4.50 appears feasible, based on earnings and on exploration potential.