Minerals 260's (ASX:MI6) Bullabulling gold project in Western Australia is progressing rapidly, with expected gold production of over 200,000 ounces per year after the staged expansion is concluded, Euroz Hartleys said in a note on Monday.

The investment firm said the company is ahead of its mid-tier developer peers in developing a project at a permitting stage with such potential production capacity, while holding a bullish stance on the operations.

It is confident that the company will be able to define an ore reserve of more than 2 million ounces of gold, as its pre-feasibility study is projected to be released in the middle of the year.

The brokerage maintained a speculative buy rating on Minerals 260 and raised the price target to AU$0.82 from AU$0.69, citing its production scale and takeover appeal.