Pinnacles Drilling Delivers Up to 37.3% Zinc Equivalent and 1,031 g/t Silver Equivalent

Strong Start to FY26 Drilling at Pinnacles

Broken Hill Mines Limited (ASX, BHM) has kicked off its FY26 drilling program at the Pinnacles Mine with a series of high-grade assay results that underscore the polymetallic potential of this historic Broken Hill region asset. The initial 32 diamond drill holes, totaling approximately 3,500 metres, have intersected significant silver, lead, zinc, gold, and copper mineralisation, particularly beneath and adjacent to previously mined open pits.

The standout intercepts include a 3.2-metre section grading an extraordinary 37.3% zinc equivalent and 1,031 g/t silver equivalent, alongside other broad zones of mineralisation that combine multiple metals. These results not only confirm the presence of high-grade zinc and silver but also highlight the value uplift from gold and copper credits, which have been incorporated into the metal equivalent calculations for the first time in this program.

Building on Historical Data and Infrastructure

These new drilling results complement previously unreleased historical assays that similarly indicate unmined high-grade zones, particularly in the Consols South area. The Pinnacles Mine, located about 15 kilometres from Broken Hill, has a long mining history dating back to the late 19th century, with intermittent underground and open pit operations.

Broken Hill Mines’ strategy is to leverage existing infrastructure at its nearby operating Rasp Mine processing plant, facilitating a more cost-effective and accelerated path to mine restart. Under a binding joint venture, ore mined at Pinnacles will be trucked to Rasp for processing, with profits shared approximately 70% to BHM and 30% to Pinnacles partners.

Resource Upgrade and Next Steps

The company plans to complete the current phase 1 drilling program by the end of 2025, with over 6,000 metres of core processing underway and assays pending for 14 additional holes targeting silver-lead rich zones. An updated Mineral Resource Estimate (MRE) is expected in the first half of 2026, which will incorporate these new results and support evaluation of near-term mining options, including potential open pit development.

Importantly, the recent uplift in the long-term silver price assumption; from US$25 to US$35 per ounce; has materially increased the economic weighting of silver in the metal equivalent calculations, enhancing the overall value proposition of the Pinnacles deposit.

Polymetallic Potential and Geological Complexity

The Pinnacles deposit exhibits a complex geological setting with multiple folded zones hosting silver-lead rich upper horizons and underlying zinc-rich zones, all overprinted by gold and copper mineralisation. This polymetallic nature offers diversified commodity exposure, which could provide resilience against price volatility in any single metal.

While true widths of mineralisation remain to be confirmed, the consistent visual mineralisation observed in drilling and the broad intercepts reported so far suggest robust continuity. Further drilling and assay results, particularly from the Rope Shaft and Junction targets, are anticipated in October 2025, promising to shed more light on the deposit’s extent and grade distribution.