Broken Hill Mines (ASX: BHM) has recently made headlines with its impressive drilling results from the Pinnacles mine in New South Wales. The company has reported strong assays that reveal a significant, continuous zone of high-grade silver-lead-zinc mineralization at the Perseverance deposit. This discovery not only highlights the potential of the site but also positions Broken Hill Mines as a key player in the Australian mining landscape.
Strong Assays from Perseverance
The latest drilling campaign has yielded assays from 22 additional holes at the Perseverance deposit, as well as infill work at the zinc-gold-copper zone at Rope Shaft and shallow drilling at the Fishers target adjacent to the historical pit wall. The results are nothing short of exceptional, showcasing silver equivalent (AgEq) intercepts that could expedite the development of underground mining alongside planned near-term open pit operations.
The Perseverance zone now extends over 350 meters down dip and reaches widths of up to 100 meters, with thicknesses typically ranging from 2 to 10 meters. This makes it one of the highest-grade undeveloped silver systems in Australia, a significant achievement for the company.
A Robust High-Grade System
The assays from the Pinnacles mine demonstrate a robust, laterally extensive high-grade system that remains open down dip. Notably, multiple intercepts have exceeded 1,000 grams per tonne AgEq, indicating a rich mineralization potential. Among the best intercepts reported are:
5.1 meters at 717 grams per tonne AgEq from 430 meters, including:
2.2 meters at 1,556 grams per tonne from 432 meters
3.2 meters at 893 grams per tonne from 472 meters
Additionally, thick, near-surface intercepts proximal to the historical open pit include:
1.8 meters at 27.7% ZnEq and 767 grams per tonne AgEq
4.7 meters at 20.4% ZnEq and 565 grams per tonne AgEq
6.5 meters at 17.9% ZnEq and 496 grams per tonne AgEq
These results underscore the potential for significant economic returns from the Perseverance zone.
Future Drilling Plans
Looking ahead, Broken Hill Mines has outlined a comprehensive Phase 2 drilling program scheduled throughout 2026. This initiative aims to enhance the understanding of the mineralization’s geometry and continuity, further solidifying the company’s position in the market. The ongoing exploration efforts are crucial for validating the high-grade mineralization and ensuring that the company can capitalize on its findings.
Updated Mineral Resource Estimate (MRE)
In light of these promising results, Broken Hill Mines is preparing to incorporate the latest assays into an updated mineral resource estimate (MRE) for the Pinnacles mine. Currently, the Pinnacles resource stands at 6 million tonnes at 13.5% ZnEq and 374 grams per tonne AgEq, which includes a Perseverance resource of 3.5 million tonnes at 15.1% ZnEq and 418 grams per tonne AgEq.
The company is also exploring the option of expediting underground development of the Perseverance zone through an exploration decline, which would provide direct access to the high-grade mineralization. This strategic move could significantly enhance the project’s viability and profitability.
Development Timeline and Processing Plant
Development at the Pinnacles mine is on track to begin supplying ore feed to the company’s processing plant, which has a capacity of 750,000 tonnes per annum, located approximately 15 kilometers away at the Rasp silver-lead-zinc mine. This feed will complement current production from Rasp’s Western Min ore body and the recently restarted high-grade Main Lode deposit.
The integration of the Pinnacles ore into the processing plant is expected to bolster the overall output and financial performance of Broken Hill Mines, positioning the company for a successful future.
Conclusion
With its recent drilling successes and strategic development plans, Broken Hill Mines is poised for significant growth in the coming years. The discovery of high-grade mineralization at the Perseverance deposit not only enhances the company’s resource base but also sets the stage for potential underground mining operations. As the company continues to advance its exploration and development efforts, stakeholders and investors alike will be keenly watching its progress in the dynamic Australian mining sector.
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