Forget BHP and buy these ASX mining shares instead: broker

These mining shares could be top options for investors in the sector right now.

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There's more to the mining sector than BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO).

For example, two up and coming ASX mining shares that are highly rated by analysts at Bell Potter are listed below.

Here's what the broker is saying about these ASX mining shares:

a man in a hard hat and high visibility vest smiles as he stands in the foreground of heavy mining equipment on a mine site.

Image source: Getty Images

Chalice Mining Ltd (ASX: CHN)

The first ASX mining share that the broker is tipping as a buy is Chalice Mining. It is a mineral exploration company behind the 100%-owned, globally significant Julimar project in Western Australia.

Drilling over the last 12 months points to one of the largest PGE-NiCu deposits in the world. This bodes well for the future given how these metals will be key to the decarbonisation of the planet.

Commenting on the project, Bell Potter said:

CHN's 100%-owned Julimar project is a globally significant PGE-NiCu deposit. Located 70km north of Perth in WA, it represents a unique opportunity to establish new strategic PGE and base metals supply in a top mining jurisdiction.

Bell Potter currently has a speculative buy rating and $11.73 price target on its shares.

De Grey Mining Limited (ASX: DEG)

Another ASX mining share to consider is De Grey Mining. It is the owner of the Mallina Gold Project in Western Australia.

Bell Potter believes this project could be a large scale, long life operation with great margins. The broker also sees potential for it to be an acquisition target for a bigger gold industry player. The broker commented:

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.

Bell Potter has a speculative buy rating and $1.80 price target on De Grey Mining's shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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