ASX materials stock Waratah Minerals Ltd (ASX: WTM) is making headlines this week after the company announced positive results from its drilling program in New South Wales.
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Company overview
Waratah Minerals is a NSW based, gold-copper exploration and development company.
Its flagship project is its 100%-owned Spur gold-copper project, an advanced stage, pre-resource exploration project in the Lachlan Fold Belt of NSW, located 33km southwest of Orange and 5km from Newmont's Cadia gold-copper operations.
Its share price has increased 70% in the last 12 months, attracting plenty of positive broker attention.
New analysis from the team at Bell Potter indicates it could continue to rise after positive results at its Spur Gold Project in New South Wales.
What did the company report?
According to the announcement earlier this week, drilling results from its Spur Gold Project in New South Wales continue to show that Spur could become a large-scale gold deposit in one of Australia's major gold and copper mining regions.
High-grade gold has now been found 100 metres deeper than previously identified at the eastern edge of the drilled area.
This suggests the gold system may be larger than currently known and remains open for further expansion.
Commenting on the results, Waratah Managing Director Peter Duerden said:
Ongoing drill results from the Spur and Consols Gold Zones continue to deliver strong intercepts highlighting major growth of the gold endowment and a system which remains open in multiple directions.
This systematic drill program is delivering a strong pipeline of news flow as we report the results which unlock the full potential at Spur and create further value for shareholders.
What is Bell Potter saying about this ASX materials stock?
Following the results, the team at Bell Potter released updated guidance on this ASX materials stock.
The broker said Waratah Minerals' program now comprises 10 active drill rigs and continues to extend known mineralisation, infill existing zones and discover new high-grade shoots.
The latest results have confirmed material mineralisation extensions both up dip and down dip of previously reported major intersections, plus identified new high-grade mineralisation at surface.
The Spur project is showing strong indications of delivering a gold-copper deposit of substantial scale and grade in a strategic setting.
The broker has subsequently retained its buy recommendation on this ASX materials stock, along with a price target of $1.05.
From yesterday's closing price of 62 cents per share, this indicates upside potential of more than 70%.
