New ore sources power Broken Hill production lift
Broken Hill Mines (BHM) has delivered improved results across its core silver, lead and zinc production and financial metrics, as the company aims for a 750,000 tonne per annum capacity from multiple new ore sources at its Rasp Mine.
The June quarter saw ore from the high-grade Main Lode deposit now contributing to production and the first material from the Pinnacles Mine delivered to the run-of-mine pad at the end of June.
The addition of Main Lode and Pinnacles gives BHM three ore sources feeding the Rasp processing plant, alongside the Western Min operation. Both deposits contain significantly higher silver, lead and zinc grades, as well as gold and copper credits, which the company expects will drive further production growth as mining ramps up.
Quarterly metal production increased across most commodities, with silver output rising 21.8 per cent to 95,787 ounces and zinc production climbing seven per cent to 3,331 tonnes. Lead production declined 3.9 per cent to 2,376 tonnes.
BHM processed 119,320 tonnes of ore during the quarter, up 3.2 per cent from the previous quarter, representing the the company’s highest quarterly throughput since June 2020. The company said 17 of the 20 highest throughput days in Rasp’s history were recorded during the period.
Exploration was a key focus of the quarter, with approximately 12,500m of drilling completed across the Rasp and Pinnacles projects, with a potential high-grade bulk-tonnage discovery made within the Centenary Zone at Rasp.
This was highlighted by an intercept of 25.8m at 11.7 per cent zinc equivalent from 415.1m. BHM said the result was around 500 per cent wider and 27 per cent higher grade than the existing resource model in the area.
Around 5,800m of drilling was completed at Pinnacles, with assay results expected in the coming weeks. The company’s broader 42,000m drilling program is nearing completion ahead of schedule and is expected to underpin mineral resource upgrades at both operations by the end of 2026.
BHM generated $9.1 million in operating cash flow during the quarter and ended June with total liquidity of $53 million, including $34 million in cash. The company also invested a further $8.3 million in growth projects, including its tailings dewatering plant, which remains on track for commissioning in early 2027.