This speculative ASX gold stock could rise 65%+

Bell Potter thinks it could be a golden time to buy this stock.

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Key points

  • Minerals 260, focused on the Bullabulling Gold Project, is on the cusp of a potential resource update that could significantly enhance its valuation, with Bell Potter projecting a striking 68% upside based on current share prices.
  • The ongoing and expanded drill program at Bullabulling suggests robust resource growth potential, bolstered by promising metallurgical recoveries and a favourable gold market, positioning MI6 for substantial developments.
  • With a strong cash position and possible M&A activities, Minerals 260 is speculatively rated a buy by Bell Potter at a target of 57 cents, offering investors exposure to gold with the anticipation of notable project advancement and de-risking.

The gold industry has been a great place to invest in 2025. But if you thought the big gains were over, think again!

That's because if you have a high tolerance for risk, then Bell Potter thinks you should be snapping up the ASX gold stock in this article.

Which ASX gold stock?

The stock in question is Minerals 260 Ltd (ASX: MI6).

It is a Perth-based exploration and development company behind the Bullabulling Gold Project.

Bullabulling is a past-producing gold mine located near Coolgardie in Western Australia, with a mineral resource estimate of 2.3Moz at 1.2g/t Au.

What is the broker saying?

Bell Potter notes that a major catalyst is on the horizon which could give this ASX gold stock a massive boost.

That catalyst is the release of a resource update on the Bullabulling Gold Project, which is due imminently. The broker said:

MI6 is on track for a Resource update at its 100%-owned Bullabulling Gold Project (BGP), 25km west of Coolgardie in Western Australia. It has made excellent progress with the major Resource drilling program underway at the BGP.

Earlier this year the program was expanded from 80,000m to 110,000m and the company guided that +90,000m of this should make it into the next Resource update. This has consistently been guided for early December 2025 and was reiterated at the recent AGM. In our view, this is likely to be a major, positive catalyst for MI6 and could be delivered as early as next week. MI6 has $43m cash and is funded to FID in early 2027.

Bell Potter believes that the current BGP resource has potential to grow strongly given the company's major drill program. It adds:

Since acquisition, MI6 has undertaken a major drill program which has extended mineralisation at depth across all deposits, confirmed continuity of mineralisation at depth, extended mineralisation along strike, confirmed continuity between some deposits and will (likely) upgrade confidence categories. Combined with higher metallurgical recoveries and a higher gold price, we anticipate pit shells to be drawn lower and capture the majority of the historic and extended Resource, supporting substantial Resource growth at the BGP.

Time to buy

According to the note, the broker has put a speculative buy rating and 57 cents price target on the ASX gold stock. Based on its current share price of 34 cents, this implies potential upside of 68% for investors over the next 12 months.

Commenting on its speculative buy recommendation, Bell Potter said:

MI6 offers gold exposure via the 2.3Moz Bullabulling Resource, valuation uplift through discovery success and further Resource growth, project advancement and de-risking as the BGP progresses towards production. There is also potential M&A activity in a market characterised by well valued gold producers with strong balance sheets and appetites for growth. We retain our Speculative Buy recommendation and our Valuation of $0.57/sh.

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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