Broken Hill Mines Boosts Production and Unveils Major Rasp Discovery

Significant Production Growth Driven by Multi-Ore Feed Strategy

Broken Hill Mines (ASX:BHM) delivered a standout June quarter, ramping up its Rasp Mine throughput to 119,320 tonnes; the highest since mid-2020; and boosting silver production by 21.8% to 95,787 ounces. Zinc output rose 7% while lead dipped slightly by 3.9%. This production surge was powered by bringing multiple ore sources online, notably the high-grade Main Lode and the newly restarted Pinnacles Mine, which delivered its first ore to the Rasp processing plant at quarter’s end.

The addition of Pinnacles as a third ore feed represents a major operational milestone, enhancing plant utilisation and diversifying supply beyond the long-standing Western Min orebody. Pinnacles ore grades are significantly higher in silver, lead, and zinc, with added gold and copper credits, positioning BHM to continue scaling metal output through 2026.

Exploration Uncovers Potential Game-Changing Bulk Tonnage Zone

BHM’s exploration efforts at Rasp delivered a potentially transformative discovery in the Centenary Zone, where targeted drilling below the Globe-Vauxhall Shear revealed a thick, high-grade mineralised zone approximately 500% wider and 27% richer than the 2024 Mineral Resource Estimate. Intercepts such as 25.8m at 11.7% ZnEq and 323g/t AgEq, including 10.9m at 17.3% ZnEq, suggest substantial upside to the existing resource base and a mineralisation style akin to the prolific Main Lode.

The company is fast-tracking reinterpretation of historic data and plans an updated resource estimate by year-end, aiming to quantify this new bulk tonnage opportunity. This discovery could materially reshape the Rasp Mine’s production profile and longevity.

Operational Efficiencies and Record Month Highlight Momentum

Alongside production gains, milling recoveries improved notably; silver recovery jumped 8.8% to 78.9%, lead to 88.3%, and zinc to 88.2%. June marked a record month with 49,700oz silver, 1,075 tonnes lead, and 1,380 tonnes zinc produced from 50,075 tonnes of ore at 6.7% ZnEq.

Underground development continued steadily, focusing on expanding access to Blackwoods North and Thompsons areas of the Main Lode, while also preparing for future drilling at British. Safety metrics showed a slight uptick in recordable injury frequency, a point to watch as operations intensify.

Financial Strength Supports Growth and Project Delivery

BHM generated A$9.1 million in operational cashflow, supported by A$40.2 million in cash receipts from sales, despite some revenue recognition timing impacts due to metal price declines at quarter-end. Production costs rose 12.6% quarter-on-quarter to A$21.5 million, reflecting increased production activity and Pinnacles Mine start-up expenses. Staff costs edged higher as contractors transitioned to full-time employees, while administrative and finance costs remained modest.

Capital expenditure on growth projects, including the Tailings Dewatering Plant, totaled A$8.3 million. The plant remains on schedule for commissioning in early 2027, promising to unlock further capacity at Rasp. Total liquidity stood at a robust A$53 million, comprising A$34 million cash and undrawn debt facilities, providing a solid buffer for ongoing development and exploration.

Pinnacles Mine Drilling Progresses with High-Grade Targets

At Pinnacles, approximately 5,800 metres of drilling advanced the Phase 2 program, focusing on the Edwards Open Pit and nearby high-grade zones. Intercepts continue to confirm widespread mineralisation, with assays pending release. The company is also evaluating underground development potential at the Perseverance target, which boasts some of Australia’s highest-grade silver-lead-zinc mineralisation, including intercepts exceeding 1,000g/t AgEq over significant widths.

This drilling will feed into a planned Mineral Resource Estimate update for Pinnacles by the end of 2026, underpinning expansion plans and further de-risking the multi-ore feed strategy.