The positive news keeps rolling in for ASX materials stock Minerals 260 Ltd (ASX: MI6).
This Perth-based exploration and development company has hit several big milestones recently which has catapulted its share price higher.
Yesterday, it was announced that the materials stock is being added to the S&P/ASX 200 Index (ASX: XJO) at the next quarterly rebalance.
This comes after an impressive 78% rise year to date and 440% rise over the last 12 months.
The company also released an important ASX announcement yesterday.
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Drilling at Bullabulling continues to support resource growth
Yesterday, the ASX materials stock announced further results from ongoing drilling at its 100% owned 4.5Moz Bullabulling Gold Project, located 25km west of Coolgardie in Western Australia.
The latest program across the Bacchus, Phoenix, Dicksons, and Kraken deposits continues to:
- Confirm the continuity of mineralisation within the 4.5Moz Mineral Resource Estimate (MRE) and extensions of mineralisation beyond the MRE boundaries
- Support the conversion of Inferred Resources to Indicated classification
- Improve the understanding of structural controls of mineralisation and support the potential identification for higher-grade trends within and outside the MRE.
What does this all mean?
The recent commencement of a 26,000m grade control program (10m x 10m spacing) represents another important step towards production readiness, focusing on areas scheduled for mining in the first two years of production and further advancing understanding of the orebody.
The maiden Ore Reserve and Pre-Feasibility Study (PFS) remain on track for release in July 2026, with an updated Mineral Resource Estimate scheduled for August 2026.
The bottom line for investors is that the latest drilling continues to support both resource growth and resource upgrades, while the commencement of grade-control drilling suggests the project is progressing toward development and potential production.
The upcoming PFS and Ore Reserve will be important catalysts for investors.
What is Bell Potter's updated view?
Following this announcement, the team at Bell Potter updated its outlook on this ASX materials stock.
The broker said these results continue to confirm the continuity and grade of mineralisation at Bullabulling.
It has also demonstrated key deposits remain open at depth and along strike, with high-grade hits below the existing pit-shells and along the more recently identified footwall shear zones which are emerging as strong high-grade targets.
Following the release, Bell Potter maintained its speculative buy recommendation and $1.350 price target.
From yesterday's closing price of approximately 77 cents per share, this indicates an upside potential of 74%.
Signalling a production focussed mindset, MI6 recently commenced a 26,000m grade control program. This has kicked off on areas scheduled for mining in the first two years of production.
This is a material de-risking step being undertaken well in advance of traditional development timelines – i.e. before the PFS has even been released. We see this as a unique opportunity for MI6 to develop a granular understanding of orebody controls that may further improve what is already sectorleading exploration efficiency.
