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Paradigm Capital’s top picks for Q3/16 include gold and zinc mining companies with upcoming catalysts worthy of investors’ attention.

On the base metals side, the companies that Paradigm analysts have selected to include in the July 5 Quarterly Top Picks Q3 2016 report include Heron Resources Ltd. (HRR:ASX), Nevsun Resources Ltd. (NSU:TSX; NSU:NYSE.MKT), Sherritt International Corp. (S:TSX) (SHERF) and Trevali Mining Corp. (TV:TSX; TV:BVL; TREVF:OTCQX).

Heron, Nevsun and Trevali are all have exposure to zinc which, the report notes, “has been the best-performing base metal YTD owing to mine depletions pushing the market into a production deficit.”

The Q3 catalyst for Trevali is the expectation that the Caribou mine will enter production in 2017, which should “more than double Trevali’s zinc-lead production” and enable the company to become free cash flow positive. “Achieving commercial production at Caribou is a major derisking (and growth) event that should dispel any lingering skepticism of the technical viability of this past-producing mine,” the report states.

Heron Resources, like Trevali, is one of the “few primary zinc producers through which investors can gain exposure to this market.” The company’s Woodlawn zinc/copper project in Australia is fully permitted and has a “very positive bankable feasibility study.” Paradigm expects the mine to go into production in 2018.

Canada-based Nevsun is the third zinc producer mentioned in the report. The company’s Bisha mine is expected to commence zinc production, which should result in “a significant improvement in 2017 as zinc production should exceed 230Mlb.” The company also recently completed acquisition of Reservoir Minerals, acquiring the Timok asset in Serbia.

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