'Best positioned': 2 ASX mining shares about to explode

It's tricky to know when to jump on junior miners. Here are two suggestions from Argonaut's Harrison Massey.

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There is no getting around that smaller ASX mining shares can be risky.

That's because junior miners are often involved in exploration and that tends to have a binary outcome — you either find the mineral or you don't.

But if you can manage to buy those stocks when there are green shoots of success, it could be very rewarding.

Here are two examples that Argonaut associate dealer Harrison Massey rates as a buy:

A 'transformational' project

Centaurus Metals Limited (ASX: CTM) has made a significant move that makes Massey bullish for the $380 million company.

"This aspiring nickel sulphide producer recently acquired the offtake rights to future production at its Jaguar Project in Brazil, which we believe is transformational for the company," Massey told The Bull this week.

"Centaurus now has control and options over future nickel sales from Jaguar."

Created with Highcharts 11.4.3Centaurus Metals PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

This all points to a bright future for the stock, according to the Argonaut team.

"In our view, Centaurus Metals is the best positioned undeveloped nickel stock on the market."

The Centaurus share price has dipped 18.5% since the start of the year.

Massey and his colleagues aren't alone in their enthusiasm.

According to CMC Markets, all five other analysts that cover Centaurus rate the stock as a buy.

'A potential takeover target'

ASX gold shares continue to look attractive to investors as uncertainty reigns over the economy.

Predictive Discovery Ltd (ASX: PDI) is Massey's pick in this area.

"Predictive Discovery owns and operates the Bankan Gold Project in Guinea," he said.

"The company recently announced a resource upgrade to its growing 4.2 million ounce gold project, giving the asset the necessary size and scale to move towards production in coming years."

Created with Highcharts 11.4.3Predictive Discovery PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

The quality of that asset has top-notch potential, according to Argonaut analysts.

"We believe Bankan is a tier 1 gold project, and the company is a potential takeover target for several producers in the region."

Predictive Discovery shares have sunk 10.5% year to date.

Similar to Centaurus, Predictive is widely popular with professional investors.

All five of the other analysts surveyed on CMC Markets currently rate the stock as a strong buy.

Motley Fool contributor Tony Yoo 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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