Meet the speculative ASX stock tipped to rise 180%

Bell Potter thinks this share could almost triple in value.

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Do you want big returns? And do you have a high tolerance for risk? If you've said yes to both of these questions, then read on.

That's because the ASX stock in this article has been tipped to almost triple in value from current levels.

But its speculative rating means that only investors willing to take on great risk should consider it as an option.

What is this speculative ASX stock?

The stock in question is named Delta Lithium Ltd (ASX: DLI). Or maybe it should be called Delta Gold after its latest announcement.

That announcement revealed that the company's 100% owned Mt Ida Project, which is a shovel ready lithium and gold project in the Eastern Goldfields Province of Western Australia, is sitting atop a significant gold deposit.

Delta Lithium advised that its updated mineral resource estimate for the Baldock Deposit has contained gold of 4.8Mt @ 4.4g/t gold for 674,000 ounces. In addition, the maiden mineral resource estimate for the Golden Vale Prospect is 27,000 ounces @ 1.7g/t Au.

Bell Potter was pleased with the news and highlights that all deposits remain open. This could mean that drilling uncovers even more gold in the coming months. It said:

DLI announced a significant upgrade to its Mt Ida Gold Resource. Resources were upgraded to 6.6Mt at 3.5g/t Au containing 752koz (prev. 412koz in the October 2023 Resource). The Baldock deposit hosts 4.8Mt at 4.4g/t containing 674koz of the total. Mt Ida has additional gold upside potential, as known deposits remain open, and new targets are yet to be tested beyond initial drill results.

Big returns

In response to the update, the broker has reaffirmed its speculative buy rating and 75 cents price target on the ASX stock. Based on its current share price of 26.5 cents, this implies potential upside of 183% for investors over the next 12 months.

To put that into context, a $5,000 investment would be worth $14,150 if Bell Potter is on the money with its recommendation. It concludes:

On a net basis, our valuation is unchanged. We increase our gold exploration value, which is offset by reductions in our valuation of the lithium assets as we reflect ongoing lithium price weakness. We maintain our BUY (Speculative) recommendation for DLI, in accordance with our ratings structure. DLI's share price continues to be affected by negative lithium sector sentiment. We see upside in DLIs' valuation from: (1) the ongoing exploration and development of the Yinnetharra and Mt Ida Lithium Projects, (2) future improvements in lithium prices and sector sentiment, and, (3) increasing levels of newsflow from gold exploration and monetisation activities.

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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