The findings are contained in Aegis Equities Research latest 'Blue Book' Exploration Review, which provides an overview of current exploration activity and projects being conducted by 24 junior exploration companies, some of which are also producers.

The report includes details of a number of junior Gold, Petroleum and Diversified Minerals explorers and producers with the potential to reap significant returns from their current exploration projects, despite recent cutbacks in exploration spending across the sector.

Aegis Equities Research resources team leader, Johan Hedstrom, said despite the inherent volatility of the resources sector, a hypothetical portfolio of the 24 companies included in the report would have produced a return of 75% for the year - significantly outperforming both the All Ordinaries index (-5%) and the All Resources index (4%) over the past 12 months.

Hedstrom says the report illustrates the benefits of diversification into this sector, which has rewarded investors with very strong returns on average from the group profiled in the report.

In addition to well known producers such as Queensland Gas Company, Consolidated Broken Hill Ltd and the now widely reported Minotaur Resources, the report provides insights into lesser known explorers with recent finds or highly prospective exploration projects underway.

Included among the latter group are the likes of ARC Energy, Victoria Petroleum, Gunson Resources and Mincor Resources. According to Hedstrom, around a quarter of the group is already generating cashflows from operations, with a number of others exhibiting strong cash backing of their share prices.

The exploration activities cover many Australian mainland and offshore projects, in addition to overseas ventures in Papua New Guineau, Africa, Thailand, Laos and Vietnam.

Copies of the report are available from Aegis Equities Research (formerly Assirt Equities Research) on +612 8296 1100 or e-mail johan.hedstrom@aer.com.au.