Titan Minerals (ASX:TTM) delivered a "significant" resource increase at its Dynasty gold project in Ecuador, highlighting strong growth potential, shallow mineralization, and a valuation discount relative to peers, according to a Friday note by Euroz Hartleys.

The company said gold resources at its Dynasty project have increased 25% to 3.9 million ounces at 1.9 grams per tonne gold, while silver resources rose 19% to 26 million ounces at 12.4 g/t silver.

Euroz Hartleys noted that the resource increase was largely driven by the Cerro Verde deposit, which now accounts for around 70% of the total resource and contains 2.7 million ounces of gold and 16 million ounces of silver.

The firm said that roughly 76% of the pit-constrained resource is within the top 200 meters, suggesting a shallow system with strong economic potential and flexible staged processing of oxide, transitional, and fresh sulphide material.

The firm stated that the company, trading at about AU$63 per ounce compared to a peer median of AU$152 per ounce, could be valued at over AU$2 per share, implying roughly 2.5 times potential upside.

The firm added that ongoing drilling and development studies are expected to lower risks for the Dynasty project and enhance its appeal, with strategic backing from Hong Kong-listed Lingbao Gold, which holds a 9.9% stake in the company.

Euroz Hartleys maintained a speculative buy rating on Titan Minerals and raised its price target to AU$1.95 from AU$1.80.

Titan Minerals' shares fell almost 4% in recent Friday trade.