en.Wedoany.com Reported - Broken Hill Mines Ltd (ASX: BHM, FRA: 662) has delivered the first silver-lead-zinc ore from the restarted Edwards Open Pit at the Pinnacles mine, marking the first resumption of operations since 2021. This is a key step in the company's hub-and-spoke strategy centered around its Rasp processing plant.
The first ore has been crushed and transported to BHM's wholly-owned Rasp processing plant, approximately 15 kilometers away, which has an annual processing capacity of 750,000 tonnes. This batch provides a third source of high-grade bulk ore in addition to the main lode and long-term western ore sources. The restart aims to increase the throughput and feed grade of the Rasp processing plant. BHM described the restart of Pinnacles as a significant de-risking milestone, adding ore supply options for the historically underutilized processing plant.
Mining at the Edwards Open Pit commenced as planned, with the first ore arriving at Rasp. Pinnacles is the second new ore supply source brought online by BHM in the past 12 months. The company is also evaluating further supply options, including high-grade underground mining at Pinnacles and development of the Centenary orebody at Rasp.
BHM Executive Chairman Patrick Walta stated that this milestone has been achieved safely and ahead of the original schedule. He emphasized that safely restarting Pinnacles operations ahead of schedule provides a third supply source, enabling the Rasp processing plant to be fully utilized. The first ore milestone from Pinnacles is a tangible demonstration of BHM's strategy to unlock value from nearby ore sources and fully leverage Rasp's operational capacity. The company looks forward to consolidating this achievement by expanding open pit operations and targeted future development of the Pinnacles underground mine.
Initial operations focus on restarting and expanding the existing Edwards Open Pit, which still has room for further extension laterally and at depth. BHM stated that restarting within the historical open pit reduces the stripping ratio typically associated with first production from an open pit and provides access to up to 50,000 tonnes of high-grade ore directly identified at the pit floor. The company plans to gradually expand the open pit into the Consols South, Fishers, Rope Shaft, and Junction areas, targeting existing high-grade resources and newly extended mineralization zones identified by recent drilling.
The historical Pinnacles mineral resource estimate is 6 million tonnes at a zinc equivalent grade of 13.5% and a silver equivalent grade of 374 g/t, including 132 g/t silver, 3.3% lead, and 4.7% zinc. BHM plans to release an updated Pinnacles mineral resource estimate by the end of 2026, which will incorporate results from the substantial drilling completed by the company.
In addition to the open pit, BHM believes Pinnacles has the potential to develop a high-grade underground mine, which could provide an additional ore supply source for the Rasp processing plant. Pinnacles Mine Managing Director Craig Williams stated that the Williams family is pleased to partner with BHM to restart the mine. The Williams family has restarted Pinnacles operations for the first time since 2021 and looks forward to assisting BHM in further expanding the mine, including the near-term development of high-grade underground operations.
Broken Hill Mines is advancing a multi-source production strategy centered around the Rasp processing plant in the Broken Hill region of New South Wales. The Pinnacles mine is a stratiform, silver-rich Broken Hill-type sulfide deposit located approximately 15 kilometers southwest of the main Rasp Broken Hill lode. Discovered in 1886, the orebody has been intermittently mined via underground and open pit methods. BHM exclusively operates the Pinnacles mine under a binding joint venture agreement, with mined ore transported to the Rasp processing plant. Based on the agreed net smelter return calculation, approximately 70% of Pinnacles operating profits go to BHM and 30% to Pinnacles.
