Not every investor will actively target ASX small-caps. However when a company is tagged with 130% upside, it's hard not to pay attention.
The ASX small-cap stock in question is gold stock Linq Minerals Ltd (ASX: LNQ).
It has already rocketed 95% higher year to date. The Bell Potter team expects this to continue.
Linq Minerals is an early-stage gold-copper explorer that has garnered attention from brokers, who have identified potential for significant growth following strong drilling results at its Gilmore project.
Its Gilmore site is an advanced exploration stage project covering ~597km2 between Temora and West Wyalong in central west NSW.
In late April, the company released a quarterly report.
This was followed up by a drilling result from its Dam deposit, part of its 100%- owned Gilmore Gold Project.
These updates have prompted new guidance from the team at Bell Potter, who are extremely optimistic about this small-cap.
Image source: Getty Images
Drilling results
According to Bell Potter, the objective of the current round of drilling is to test the extents of a higher-grade gold-copper core zone within the known mineralisation.
The latest drill hole, TDRCD005, hit 114 metres at 1.19 grams per tonne gold equivalent from a depth of 144 metres.
This result extends the higher-grade zone by another 50 metres to the north, bringing the total strike length to about 400 metres.
Drilling has been successful so far, with four of the first five holes delivering strong results.
The higher-grade zone is still open, meaning it could continue further along strike and at depth.
There are still results pending from nine more drill holes, which are testing extensions to the north, south, and deeper underground.
These are further positive results that continue to build the scale, consistency and add to the economic value of the Dam deposit. This latest assay result is now one of multiple intersections of this scale and width, building a critical mass that we anticipate will be reflected in the next Resource update.
Big upside for this ASX small-cap
Following this update, the team at Bell Potter retained its buy recommendation, and price target of 90 cents per share.
From yesterday's closing price of 39 cents, this indicates an upside potential of 130% for this ASX small-cap.
We see the foundations of a competitive development project that is undervalued by the market. Current and planned drilling programs have the potential to highlight this and catalyse a re-rating. We retain our Speculative Buy recommendation.
