Broken Hill Mines has restarted open pit mining at its Pinnacles Mine, delivering the first silver-lead-zinc ore to its Rasp Processing Plant and adding a third high-grade feed source to improve plant utilisation.
- Pinnacles open pit operations restarted with first ore hauled to Rasp Plant
- Third high-grade ore feed source enhances Rasp Plant utilisation
- Expansion plans include open pit growth and underground mining assessment
- Updated Pinnacles Mineral Resource Estimate expected late 2026
- Joint venture profits shared 70% BHM, 30% Pinnacles
Pinnacles Mine Restart Unlocks Rasp Plant Capacity
Broken Hill Mines Limited (ASX:BHM) has achieved a significant operational milestone by restarting mining at the Edwards Open Pit of its Pinnacles Mine and delivering the first silver-lead-zinc ore to the nearby 750,000 tonnes per annum Rasp Processing Plant. This marks the first mining activity at Pinnacles since 2021 and introduces a third high-grade ore feed source to the Rasp Plant, which had previously suffered from underutilisation due to limited ore supply options.
The addition of Pinnacles ore feed complements the existing Main Lode and Western Min sources, providing BHM with greater flexibility and derisking its processing operations. The Edwards Open Pit mining commenced on schedule, with ore crushed and trucked approximately 15 kilometres to the Rasp Plant, signalling a tangible step forward in BHM’s strategy to maximise asset utilisation and value extraction.
Expansion and Underground Potential at Pinnacles
Initial operations focus on expanding the Edwards Open Pit laterally and at depth, targeting up to 50,000 tonnes of high-grade ore identified at the pit floor that remained unmined due to the abrupt halt in 2021 amid the Covid-19 pandemic. BHM plans progressive open pit expansion into adjacent areas such as Consols South, Fishers, Rope Shaft, and Junction, all supported by recent drilling results that have confirmed high-grade silver-lead-zinc mineralisation.
Beyond open pit mining, BHM is actively assessing the potential for high-grade underground operations at Pinnacles to provide an additional ore feed for the Rasp Plant. This development could further enhance production options and resource life, although underground mining remains in the evaluation phase.
Resource Update and Joint Venture Structure
The historical Mineral Resource Estimate (MRE) for Pinnacles stands at 6.0 million tonnes grading 13.5% zinc equivalent and 374 grams per tonne silver equivalent, including 132g/t silver, 3.3% lead, and 4.7% zinc. BHM intends to release an updated MRE in late 2026, incorporating extensive drilling data collected since its acquisition of Pinnacles.
Operations at Pinnacles are conducted under a joint venture agreement with the Williams family, with BHM as the exclusive operator. Profits are shared approximately 70% to BHM and 30% to Pinnacles based on a net smelter return calculation. The Williams family expressed strong support for the restart and ongoing development, highlighting the rapid progress achieved by BHM.
Strategic Implications for BHM’s Growth
Executive Chair Patrick Walta emphasised that the early restart ahead of schedule demonstrates BHM’s commitment to unlocking value from nearby ore sources and leveraging the Rasp Plant’s operational capacity. The Pinnacles feed adds critical optionality, helping to mitigate risks associated with reliance on fewer ore bodies and supporting a more balanced production profile.
This development follows BHM’s recent operational improvements and resource expansions at Rasp and Pinnacles, which have driven higher grades and production outputs in recent quarters. The company’s focus on integrating multiple ore sources under a ‘Hub & Spoke’ model aims to sustain and grow its silver-lead-zinc output efficiently.
Bottom Line?
The Pinnacles restart is a key step in maximising Rasp Plant throughput, but the scale and timing of underground mining remain pivotal for sustained growth.
Questions in the middle?
- How will the updated Pinnacles Mineral Resource Estimate affect BHM’s production forecasts?
- What are the technical and economic hurdles facing the development of underground mining at Pinnacles?
- Can BHM sustain plant utilisation improvements amid fluctuating ore grades and supply volumes?