Broken Hill Mines Restarts Pinnacles Mine to Boost High-Grade Silver-Lead-Zinc Output

Pinnacles Mine Returns to Production After Five Years

Broken Hill Mines Limited (ASX:BHM) has reignited mining operations at its Pinnacles Silver-Lead-Zinc Mine, the first since the Covid pandemic forced a halt in 2021. This restart is a key step in BHM’s strategy to progressively ramp up throughput at its 750,000 tonnes per annum Rasp processing plant by introducing new ore sources alongside the established Western Min feed.

Open pit mining activities are already underway, with drill and blast operations progressing and truck/shovel movements active on site. The company anticipates trucking the first ore 15 kilometres to the Rasp Mill for processing during the June quarter, adding a second high-grade ore feed within 12 months of BHM’s ASX listing. The Pinnacles restart complements the ramp-up at the Main Lode mine, supporting a multi-source supply model designed to optimise the Rasp plant’s capacity.

These operational developments build on recent drilling success, which has revealed impressive high-grade silver, lead, and zinc intercepts within the Pinnacles open pit. Notable results include intercepts such as 7.9 metres at 56.4% zinc equivalent (ZnEq) and 1,562 grams per tonne silver equivalent (AgEq), underscoring the mine’s significant resource potential. BHM plans to expand open pit operations into adjacent zones including Consols South, Fishers, Rope Shaft, and Junction, targeting both existing resources and new shallow drill targets.

Resource Base and Underground Potential

The historical Mineral Resource Estimate (MRE) for Pinnacles stands at 6.0 million tonnes grading 13.5% ZnEq, including 132 grams per tonne silver, 3.3% lead, and 4.7% zinc. BHM intends to update this MRE in late 2026 to incorporate drilling completed to date, potentially enhancing the resource base further. Alongside open pit mining, the company is assessing the viability of very high-grade underground operations, which could provide an additional ore feed to the Rasp plant in the near term.

This resource expansion and operational progress are consistent with BHM’s recent production growth, which saw a 29% increase in ore grade at Rasp and a 52% jump in silver output in the March quarter. The company’s ability to diversify ore feeds and ramp processing capacity is a critical driver of its improved operational cash flow and production efficiency, as highlighted in the recent 29% ore grade increase report.

Joint Venture Structure and Profit Sharing

The Pinnacles Mine operates under a binding joint venture agreement, with BHM as the exclusive operator. Ore mined at Pinnacles is transported to the Rasp processing plant, located 15 kilometres away. Profits from Pinnacles are shared approximately 70% to BHM and 30% to the joint venture partner, calculated on a net smelter return basis. While the announcement does not detail the precise financial impact, this structure aligns incentives for efficient operation and resource development.

Securing a diversified ore supply is particularly timely given BHM’s recent renewal of its Consolidated Mining Lease 7 to 2047, which secures long-term operational rights at Rasp. The company’s focus on ramping both Main Lode and Pinnacles ore feeds supports sustained production growth and resource optimisation over the coming years, as noted in the Rasp Mining Lease Renewal to 2047 announcement.

Operational Infrastructure and Site Preparation

BHM has mobilised mining contractors and completed preparatory earthworks at Pinnacles, including establishing new administrative offices and clearing the Run of Mine (ROM) pad. The site layout and logistics plan involve trucking ore to the Rasp plant, integrating seamlessly into the existing processing infrastructure. The company’s ‘Hub & Spoke’ model leverages multiple ore sources feeding a central processing hub, enhancing operational flexibility and resilience.

With drilling and blasting underway, and first ore expected imminently, the Pinnacles restart represents a tangible milestone in BHM’s growth trajectory. The company’s extensive drilling results, operational updates, and resource potential collectively position Pinnacles as a cornerstone for expanding Broken Hill’s silver-lead-zinc footprint.