The de-risking nature of works underway at Minerals 260's (ASX:MI6) Bullabulling gold project in Western Australia, especially the 26,000-meter grade-control program, is encouraging, Euroz Hartleys said in a note on Tuesday.
The firm remains on track to publish its prefeasibility study and a maiden reserve in July. It flagged opportunities to start early works to de-risk the development of the project and potentially fast-track the timeline.
Recent drill results have confirmed continuity of the mineral resource and have also shown potential resource extension at depth across the resource. They included up to 15 meters at 3.8 grams per tonne grade of gold from 24 meters and three meters at 5.8 g/t gold from 156 meters.
The results support the growth in the production potential beyond the current forecast of around 210,000 ounces per annum by increasing the throughput rate above 10 million tonnes per annum.
The investment firm retained its speculative buy rating on Minerals 260 with a price target of AU$0.93 per share.