Broken Hill Mines Lifts Silver Output as New Ore Sources Gather Pace

Broken Hill Mines (ASX: BHM) lifted June-quarter silver production by 21.8% and zinc production by 7.0% as higher-grade Main Lode ore joined the established Western Min feed at its Rasp mine.

The operation processed 119,320 tonnes, its highest quarterly volume since June 2020, while silver output reached 95,787 ounces, zinc output rose to 3,331t, and lead production eased 3.9% to 2,376t.

A third source entered the supply mix when the restarted Pinnacles mine delivered its first silver-lead-zinc ore to the Rasp processing plant at the end of June, with a staged ramp-up planned through the remainder of 2026.

The quarter generated A$9.1 million of operational cash flow from A$40.2m in customer receipts, leaving Broken Hill Mines with A$53m in total liquidity including A$34m cash.

Rasp Delivers Stronger Exit Rate

Rasp recorded 17 of the 20 highest ore-throughput days in its history during the quarter, then processed a record 50,075t in June to produce 49,700oz silver, 1,075t lead, and 1,380t zinc.

Silver recovery improved to 78.9%, lead recovery reached 88.3% and zinc recovery increased to 88.2%, supporting stronger metal output despite a modest decline in the processed lead grade.

Main Lode stoping contributed 20,112t grading 14.7% zinc equivalent (ZnEq), or about 15% of total ore mined, as development continued at the Blackwoods North and Thompsons areas.

The June plant feed graded 6.7% ZnEq, including 38 grams per tonne silver, 2.4% lead, and 3.4% zinc, providing a strong exit rate as the new ore sources scale.

The Tailings Dewatering Plant remains on schedule for commissioning in early 2027, completing the three-project growth program supporting the ramp-up towards Rasp’s 750,000t annual processing capacity.

Extended Growth Pipeline

The restart of the Edwards open pit at Pinnacles adds a high-grade bulk source about 15km from Rasp and reduces reliance on the long-term Western Min supply, with Broken Hill Mines operating under a 70% profit-share arrangement rather than owning the tenements.

Initial mining can access up to 50,000t of high-grade ore in the existing pit floor, with planned expansion into the Consols South, Fishers, Rope Shaft, and Junction areas.

The historical mineral resource estimate (MRE) for Pinnacles totals 6.0 million tonnes grading 13.5% ZnEq and 374g/t silver equivalent (AgEq), while its planned year-end update will incorporate about 31,000m of completed drilling.

About 12,500 metres of drilling was completed across Rasp and Pinnacles during the quarter as the 42,000m 2026 program neared completion ahead of schedule.

Targeted drilling beneath the Globe-Vauxhall Shear at Rasp intersected 25.8m at 11.7% ZnEq and 323g/t AgEq within a 40m mineralised zone about 250m from Western Min.

This is around 500% wider and 27% higher in grade than the 2024 inferred MRE model at that location.