High-Grade Intercepts Propel Pinnacles Mine Toward June 2026 Production

Strong Near-Surface Silver-Lead-Zinc Intercepts

Broken Hill Mines Limited (ASX, BHM) has delivered a compelling update from its Pinnacles Mine near Broken Hill, New South Wales, with drilling results revealing thick, high-grade silver-lead-zinc mineralisation close to surface. Notably, a standout intercept of 9.2 metres grading 545 grams per tonne silver equivalent (AgEq) from just 12 metres depth highlights the potential for economically viable open pit mining.

The Phase 1 drilling program, completed in December 2025 and spanning approximately 8,500 metres, has confirmed continuity of mineralisation across key target areas including Junction, Rope Shaft, and Fishers. These results build on previous high-grade intercepts and reinforce the geological model underpinning the resource.

Gold and Copper Overprint Adds Value

Beyond the base metals, BHM’s drilling has also identified a broad zone of gold mineralisation overprinting the silver-lead-zinc system. Intercepts such as 6.9 metres at 2.2 grams per tonne gold from 87 metres depth suggest an additional revenue stream that could enhance project economics. Copper mineralisation has also been noted, further diversifying the metal portfolio.

Advancing Towards Production

With Phase 1 drilling results supporting the near-term open pit mining strategy, BHM has commenced its largest ever Phase 2 drilling campaign, targeting 25,000 metres. This program aims to expand the mineral resource and refine mine planning options, including both open pit and underground scenarios.

The company remains on track to deliver first ore from Pinnacles to its operating Rasp Mine processing plant, located approximately 15 kilometres away, in the June quarter of 2026. This integration is expected to optimise processing efficiencies and reduce capital expenditure.

Resource Update and Future Outlook

An updated Mineral Resource Estimate (MRE) is anticipated in mid-2026, incorporating the expanded Phase 1 drilling data. This update will be critical in validating the resource base and supporting further development decisions.

While assay results for approximately 40 holes remain pending, the current data underscores the potential for a significant, high-grade deposit amenable to open pit extraction. The shallow nature of mineralisation in several target areas, combined with the continuity demonstrated in drilling, bodes well for operational execution.

Broken Hill Mines’ strategic focus on leveraging existing infrastructure at Rasp Mine and accelerating Pinnacles production could position the company favourably amid a competitive base and precious metals market.