Broken Hill Mines (ASX: BHM) has reported strong production growth through the March quarter at its flagship Rasp silver-lead-zinc mine in New South Wales as operations continue to ramp-up.
The company recorded a total 115,653 tonnes of ore processed during the period, representing a 3.6% increase on the December quarter’s production total of 111,661t.
It comprised 78,649 ounces of silver production, a 51.7% increase from the previous quarter’s 51,832oz.
The operation also produced 2,473t lead (up 48.5% from 1,665t) and 3,113t zinc (up 7.9% from 2,886t) in the period.
‘Hub and Spoke’ Strategy
Broken Hill is staging a progressive ramp-up at Rasp’s Main Lode deposit and the Pinnacles open pit and underground mine to feed the central processing plant and complement existing long-term ore supply from Western Min.
The ramp-up is based on a ‘hub and spoke’ business strategy that incorporates ore supply from the three ore bodies for treatment at the 750,000tpa plant.
Stoping ore ramp-up at Main Lode is targeted to materially increase in the June and September quarters this year.
First ore feed from Pinnacles remains on schedule to commence in the June quarter.
Mining Lease Extensions
Broken Hill has confirmed that consolidated mining lease 7 (CML7) and mining purposes leases 183-186 have been renewed through to 2047, extending the company’s operating horizon across the Rasp mine and surrounding infrastructure.
Exploration licence applications ELA6996 and ELA6997 have also been granted, converting to EL9881 and EL9882 and expiring in 2032.
Held by Kingfisher Mining (ASX: KFM), the exploration licences form part of a recent mining and processing co-operation agreement with Broken Hill to support ongoing regional growth opportunities for the Rasp operations.
The 10-year agreement sets the framework for ore from Kingfisher’s 400-square-kilometre portfolio to be mined and processed exclusively at the Rasp plant.
This provides a ready-made pathway for Kingfisher’s mineralisation to reach the market, while allowing it to bypass the significant capital expenditure and multi-year timelines required to build its own standalone infrastructure.
