I'm not in the market for another speculative gold stock – my appetite for that is satisfied by a small investment in Sunstone Metals Ltd (ASX: STM).
But if I were, I think I'd have a good long look at Ballard Mining Ltd (ASX: BM1).
Investment checklist looking good
Ballard ticks a few boxes, which makes it easier to be confident that the company could get its project up and running.
Firstly, it is exploring for gold in Western Australia – a jurisdiction which is very comfortable with gold mining projects.
Secondly, the company's Mt Ida Gold Project already has seven granted mining leases and key approvals in place, including an approved mining proposal, a mine closure plan, and a native vegetation clearing permit.
And finally, the company already has a mineral resource estimate, but is also having further exploration success outside the confines of that resource.
Ballard announced on 23 September that its Mt Ida gold resource had increased by 56% to 1.84 million ounces.
The company's Managing Director Paul Brennan said at the time that, "We believe Mt Ida remains relatively underexplored, and recent drilling results reinforce our confidence in the Project's long-term growth potential".
This confidence has been borne out by new drilling results announced on 28 October, which returned several high-grade assays from areas outside the mineral resource estimate.
The company also said that downhole geophysical surveys had identified a new target extending to a depth of 485m below the current Baldock mineral resource.
Mr Brennan said that the company had also returned broad, shallow results at the Ayla and Vortex prospects which highlighted the resource growth opportunities in the area.
He added that geological modelling and follow-up drilling were underway, "with the new information to be assessed for incorporation into future Mineral Resource updates".
In terms of the risk scenario, with the company yet to even have finished a prefeasibility study, there's plenty of water that needs to go under the bridge before the first gold is poured, but it's not a bad start.
ASX gold company given bullish valuation
Broker Canaccord Genuity also likes Ballard, and has a speculative buy rating on the company.
The broker said the recent results "reinforce the potential for Mt Ida's resource base to continue growing alongside BM1's development-focused workstreams''.
CG said it believed the next target for the mineral resource estimate should be to exceed 2 million ounces of gold.
The broker expects the company to publish a definitive feasibility study and an ore reserve in mid-2027, with its base case being a 100,000-ounce-per-year mining operation.
It said increases in the mineral resource estimate could push the production rate higher or the mine life to more than 10 years.
CG has a price target of $1.65 on Ballard shares compared with 58 cents currently.
The company is currently valued at $214.5 million.
The post Why I'd roll the dice on this ASX gold explorer appeared first on The Motley Fool Australia.
Motley Fool contributor Cameron England has positions in Sunstone Metals. 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.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2026