South32's (ASX:S32) potential sale of its Cannington mine in Queensland is a "logical" point in the asset's life cycle, Jefferies said in a Tuesday note.

The miner, according to recent media reports, received unsolicited inbound offers for the Cannington mine, which currently has a reserve life extending to fiscal 2031.

"With silver prices reaching recent highs, the ability to economically extend mine life has increased to the point where it seems a logical time in the asset's life to divest," analysts at Jefferies said in a note.

The investment firm added that South32 had a strong quarter operationally at its core assets, while the final $153 million insurance recovery exceeded its expectations of $100 million.

Jefferies maintained a buy rating on South32 and increased its price target to AU$3.75 from AU$3.30.

South32's shares were up almost 1% in recent Wednesday trade.