If you're looking for exposure to the gold sector, then De Grey Mining Limited (ASX: DEG) shares could be the way to do it.
That's the view of analysts at Bell Potter, which rate the ASX 200 gold share very highly.
Image source: Getty Images
Why buy this ASX 200 gold share?
De Grey Mining is a gold exploration and development company in one of the world's strongest tier 1 mining jurisdictions.
It owns the Mallina Gold Project in the Pilbara region of Western Australia. The key discovery at the project has been the near surface Hemi discovery, which management believes is rapidly moving the company towards its goal of defining a tier 1 project with true district-scale potential.
Bell Potter appears to agree with this view and has put a speculative buy rating and $1.83 price target on its shares. Based on the current De Grey Mining share price of $1.37, this implies potential upside of 33% for this ASX 200 gold share over the next 12 months.
Bell Potter is bullish due to the significant potential of the Mallina Gold Project and its potential to be an acquisition target. It explained:
DEG is advancing its 100%-owned Mallina Gold Project (MGP) located 60km south of Port Hedland in WA. Mineral Resource for the MGP are 251Mt at 1.3g/t gold containing 10.6Moz of gold. Based on the PFS outcomes and our own modelling, we believe the MGP can support a large-scale, long life production asset with operational flexibility and robust margins in one of the world's top mining jurisdictions. We view the MGP as a rare opportunity that is attractive as both a foundation production asset for DEG or as a meaningful acquisition for any of the world's top gold production companies.
