Broken Hill, NSW – November 13, 2025 – The venerable Pinnacles Mine in New South Wales is on the cusp of a significant rebirth, fueled by a series of exceptional high-grade silver drill hits that are accelerating plans for a near-term restart of its open-pit operations. This resurgence, spearheaded by Broken Hill Mines (ASX:BHM), formerly Coolabah Metals, marks a pivotal moment for the historic mining district and promises to inject much-needed supply into a global silver market grappling with persistent deficits. While the immediate impact on overall global silver prices is expected to be modest, the project's high-grade nature and strategic integration into existing infrastructure position it as a key contributor to addressing the ongoing supply shortfall, particularly as industrial demand for silver continues to surge.
The potential restart of Pinnacles Mine is a testament to renewed exploration efforts and strategic consolidation in the region. With global silver prices approaching all-time highs and industrial applications, particularly in green technologies, driving demand to unprecedented levels, the timing of this high-grade discovery could not be more opportune. Broken Hill Mines' aggressive development strategy aims to leverage these favorable market conditions, enhancing its production profile and establishing a more robust presence in the critical metals sector.
Detailed Coverage: Pinnacles Mine's Resurgence and Strategic Consolidation
The recent excitement at Pinnacles Mine stems from a series of exceptional high-grade silver-lead-zinc intercepts reported by Broken Hill Mines (ASX:BHM). In October 2025, drilling results from two "Junction" holes revealed very high-grade silver down-dip from previous drilling, including a remarkable 7.9 meters at 56.4% Zinc Equivalent (ZnEq) and 1,562 g/t Silver Equivalent (AgEq) (921 g/t Ag, 18.8% Pb, 6.8% Zn, 0.1% Cu, 0.7 g/t Au) from a shallow depth of 57 meters. Further results from September 2025's FY26 drilling program yielded intercepts up to 37.3% ZnEq and 1,031 g/t AgEq, alongside historical assays in the Consols South area highlighting unmined high-grade mineralization, such as 1.9m at 56.4% ZnEq and 1,565g/t AgEq (1,090g/t Ag, 17.9% Pb, 2.1% Zn, 0.5g/t Au) from 106.4m. These results not only confirm the continuity and grade across multiple high-value zones but also identified broad copper and gold mineralization, significantly enhancing the project's long-term potential for multi-metal revenue streams. An updated Mineral Resource Estimate (MRE) for Pinnacles is targeted for the first half of calendar year 2026.
The journey to this moment has been a strategic one for Broken Hill Mines. The Pinnacles Mine, which began operations in 1884, was placed on care and maintenance in 2020 due to the COVID-19 pandemic, though exploration drilling continued. A pivotal moment occurred on October 31, 2024, when BHM, then Coolabah Metals, acquired 100% of Broken Hill Operations Pty Ltd (BHOPL) from CBH Resources Limited (a subsidiary of Toho Zinc Ltd), which included the operational Rasp Mine in Broken Hill, NSW. Concurrently, BHM secured an option over a 70% profit-sharing interest in Pinnacles, which was formalized into a binding joint venture agreement on March 27, 2025, with BHM exercising its option via a A$600,000 payment. This consolidation marked the first time a single company integrated two of Broken Hill's three operating mines, allowing BHM to become the exclusive operator of Pinnacles with a strategic plan to process Pinnacles' ore at the Rasp processing plant, located just 15 kilometers away.
This strategic integration is key to BHM's operational plans. The Rasp processing plant boasts a design capacity of 750,000 tonnes per annum (TPA), which BHM intends to fully utilize. To achieve this, the company plans to construct a tailings dewatering facility at Rasp, removing reliance on solar drying and enabling nameplate throughput. The similar mineralogical and metallurgical characteristics of Pinnacles and Rasp ore make this processing synergy highly efficient. BHM anticipates commencing open-pit mining operations at Pinnacles in the first half of 2026, supported by a recent A$38.5 million capital raise and a US$25 million concentrate offtake financing facility with Hartree Metals LLC, demonstrating strong market confidence.
Initial market reactions to BHM's consolidation strategy and promising drill results have been largely positive. The company's shares experienced a significant increase in September 2025 following positive news regarding both Rasp and Pinnacles. The successful capital raise in October 2025, attracting strong support from Australian and international institutional and sophisticated investors, underscores the market's belief in BHM's growth trajectory. This capital is earmarked to accelerate a 25,000m exploration program at Pinnacles and advance open-pit development for an early 2026 mine restart, positioning BHM for continuous news flow throughout 2025 and 2026.
Company Impact: Broken Hill Mines Poised for Growth, Ripple Effects for Others
The potential restart of the Pinnacles Mine presents a transformative opportunity for Broken Hill Mines (ASX:BHM), offering substantial financial and operational benefits. The high-grade Mineral Resource Estimate (MRE) of approximately 6.0 million tonnes (Mt) at 10.9% Zinc Equivalent (ZnEq) from Pinnacles, including significant silver, lead, and zinc, will provide a crucial high-grade ore feed to the Rasp processing plant. This will not only significantly increase BHM's overall metal production but also enhance profitability, especially with silver prices reportedly approaching all-time highs. The company's 70/30 operational profit share over Pinnacles ensures a substantial portion of future earnings, further bolstered by the A$38.5 million capital raise and US$25 million offtake financing, which will fund accelerated growth initiatives and extend overall mine life through extensive drilling programs.
Operationally, BHM stands to gain immensely from the integration of Pinnacles. The Rasp processing plant, currently operating below its 750,000 TPA capacity, will be optimized with the additional high-grade ore from Pinnacles, facilitated by planned infrastructure upgrades like the tailings dewatering facility. This consolidation, with the mines only 15km apart, creates strong operational synergies, leading to significant cost efficiencies and increased production rates. Pinnacles' high-grade and shallow mineralization also makes it ideal for lower-cost open-pit mining, offering a faster path to production and diversifying BHM's ore feed with a second high-grade source.
Beyond Broken Hill Mines, the restart of Pinnacles will create ripple effects across various stakeholders. Hartree Metals LLC (Private), through its US$25 million Senior Secured Offtake Financing Facility, is a direct beneficiary, securing a future supply of zinc, lead, and silver concentrates. Nyrstar (Private/Public Link), particularly its Port Pirie Smelter, could also see a positive impact from increased lead concentrate production from BHM, although BHM also exports globally. Mining services and equipment providers, including various ASX-listed and private entities specializing in drilling, blasting, earthmoving, engineering, and processing plant maintenance, are expected to experience increased demand and contract opportunities due to the accelerated development and extensive drilling programs.
Logistics and transportation companies (various ASX-listed and private entities) involved in road haulage from Pinnacles to Rasp and subsequent rail transport of concentrates to Port Pirie or the Port of Adelaide will also benefit from the increased movement of materials. Investment banks and brokers, such as Blue Ocean Equities and Peloton Capital, which facilitated BHM's recent A$38.5 million placement, have already benefited from their advisory roles. While an increase in global silver, lead, and zinc supply from BHM's expanded production could theoretically intensify competition for larger players like South32 (ASX:S32) or Red River Resources (ASX:RVR), the scale of BHM's output relative to the global market, coupled with existing structural deficits, suggests any negative impact on major competitors would likely be marginal or absorbed by market demand.
Wider Significance: Addressing the Silver Deficit and Fueling Green Technologies
The restart of the Pinnacles Mine by Broken Hill Mines (ASX:BHM) transcends a local mining event, fitting squarely into broader, critical industry trends. Foremost among these is the persistent global silver deficit. The silver market has faced a supply shortfall for several years, with industrial demand reaching record highs in 2024 and projected to remain robust in 2025. This substantial industrial consumption, now accounting for 59% of total global silver demand, is primarily driven by the burgeoning green energy transition and advanced technology sectors. Pinnacles, as a silver-lead-zinc deposit, is strategically positioned to contribute new supply into this undersupplied market, potentially helping to stabilize prices or temper further increases.
Furthermore, Pinnacles' output directly supports the surging demand for battery metals and green technologies. Silver is an increasingly vital component in solar panels (photovoltaics), where consumption is projected to exceed 300 million ounces annually by 2030. It is also indispensable in electronics, 5G infrastructure, and electric vehicles (EVs), which use significantly more silver than traditional cars. Notably, advancements in solid-state EV batteries, such as Samsung's use of a silver-carbon composite, could dramatically increase silver demand. The mine's production of lead and zinc also plays a crucial role as essential industrial metals supporting broader economic activities that indirectly drive demand for other critical minerals. The additional discovery of gold and copper mineralization further diversifies its contribution to the wider metals market.
The ripple effects of this restart on competitors are noteworthy. While the overarching global silver deficit suggests new supply is needed, the increased output from Pinnacles could intensify competition for market share, particularly for other regional silver, lead, and zinc producers. However, in a market experiencing structural deficits, new supply is more likely to be absorbed rather than creating an oversupply. The renewed operation, leveraging modern exploration and BHM's Rasp Mine processing plant, may also set new benchmarks for efficiency, prompting competitors to assess and adapt their own operations to remain competitive.
From a regulatory and policy standpoint, BHM must navigate comprehensive federal and state regulations. This includes adhering to stringent environmental protection laws and conducting detailed environmental impact assessments, as well as providing robust mine closure plans and financial assurances. The positive preliminary test work at Pinnacles, indicating waste material is not acid-producing, is a favorable environmental indicator. Moreover, as Australia focuses on its critical minerals strategy, silver's increasing industrial applications in green technologies could see projects like Pinnacles gain greater policy attention and support, potentially streamlining future development.
Historically, mine restarts and new supply have always influenced commodity markets. Past-producing mines like Pinnacles, with their proven deposits and existing infrastructure in stable jurisdictions, offer significant advantages. Modern exploration techniques and improved commodity prices can render previously uneconomical deposits viable again, as exemplified by Pinnacles, which commenced mining in 1884 and is now being re-evaluated. While new supply can lead to short-term price volatility, its long-term impact in markets with structural deficits, like the current silver market, is often one of rebalancing rather than creating a glut. Such projects highlight a broader industry trend of reactivating dormant assets to meet contemporary demand, with BHM's efforts at Pinnacles serving as a compelling case study.
What Comes Next: A Transformative Period for Broken Hill Mines
The coming months and years promise to be a transformative period for Broken Hill Mines (ASX:BHM) and its Pinnacles Mine. In the short term (next 12-18 months), BHM is aggressively focused on fast-tracking the restart of open-pit mining operations at Pinnacles, targeting the first half of 2026. This push is underpinned by a 25,000-meter drilling program at Pinnacles, aiming to expand resources and define new mineralization in high-priority areas, with significant assay results expected over the next few months. Concurrently, early works and infrastructure upgrades at Pinnacles are planned, alongside the construction of a tailings dewatering facility at the Rasp processing plant to unlock its full 750,000 TPA capacity. An updated Mineral Resource Estimate (MRE) for Pinnacles, due in the first half of 2026, will be crucial for guiding these open-pit mining and processing plans.
Looking further ahead (beyond 18 months), BHM's long-term strategy centers on maximizing multi-metal revenue streams and establishing a sustained, high-grade production profile. Continued exploration, including a planned Phase 2 drilling program in early 2026, aims to significantly increase the resource size and grade at Pinnacles, with an exploration target of 6Mt to 15Mt. The identification of widespread shallow gold and copper mineralization alongside the rich silver-lead-zinc deposits strengthens the potential for diverse and robust revenue streams, cementing BHM's position as a long-life, multi-metal operator in the Broken Hill region. The company is strategically positioned to benefit from the growing silver price, which has seen a year-to-date increase of 69.45% as of October 2025, amidst structural supply deficits and surging industrial demand.
To navigate this period, BHM will need to remain agile and strategically adapt. A refined focus on multi-metal extraction strategies, potentially involving adaptations to processing circuits or marketing, will be necessary to optimize the value of gold and copper discoveries. Maintaining stringent cost control and operational efficiency will be paramount, especially given historical volatility in the Australian silver, lead, and zinc mining industry. Continuous investment in exploration and resource definition is critical to extend mine life and ensure a steady pipeline of high-grade ore, addressing industry-wide challenges of declining ore grades. Furthermore, adeptly managing environmental and regulatory compliance will be crucial to avoid delays and ensure sustainable operations.
Emerging market opportunities are significant, driven by strong and persistent demand for silver in industrial applications, particularly in green technologies. While the zinc market has faced recent surpluses, a forecast rebound in the refined zinc market and steady growth in mine production offer potential upside. Challenges include inherent commodity price volatility, potential global economic slowdowns impacting industrial metal demand, and operational headwinds such as rising production costs. However, BHM's strategic location in the historically rich Broken Hill region provides a competitive advantage.
Various scenarios could unfold. An optimistic scenario sees BHM confirming and significantly expanding high-grade resources, restarting Pinnacles on schedule, and the Rasp plant reaching full capacity efficiently. Sustained strong commodity prices drive significant revenue growth, establishing BHM as a leading mid-tier multi-metal producer. A base case scenario involves steady progress, achieving targeted production rates, and consistent profitability amidst stable commodity prices. However, a challenging scenario could see unexpected operational delays, mixed drilling results, cost overruns, or a significant downturn in commodity prices, leading to a slower ramp-up and potential financial strain. Broken Hill Mines is in a pivotal period, with its success heavily reliant on executing its accelerated development plans, realizing exploration potential, and skillfully navigating dynamic commodity markets.
Wrap-Up: High-Grade Silver and a Bullish Outlook for BHM
The high-grade silver drill hits and the impending restart of the Pinnacles Mine mark a significant turning point for Broken Hill Mines (ASX:BHM) and the broader Australian mining landscape. The strategic integration of Pinnacles ore with the Rasp processing plant, coupled with the proven high-grade mineralization and the identification of multi-metal revenue streams (silver, lead, zinc, gold, copper), positions BHM for substantial growth. Key takeaways include the successful capital raise and offtake agreement, which provide robust funding for accelerated development, and the clear operational timeline targeting an open-pit restart in the first half of 2026. This initiative is effectively breathing new life into a nationally significant historic asset, leveraging modern exploration and processing techniques to meet contemporary demand.
Looking ahead, the market for the metals produced at Pinnacles presents a mixed yet largely supportive picture. The outlook for silver is overwhelmingly bullish, with prices surging and projected to reach new highs, driven by persistent global supply deficits and robust industrial demand from green energy, electronics, and even central bank accumulation. Lead demand is expected to see steady growth, primarily from the resilient lead-acid battery market, with prices remaining relatively stable. Zinc, however, faces a more challenging outlook, with projected market surpluses and weaker demand from key sectors possibly leading to price declines in the near term. This diversified commodity exposure provides BHM with some resilience against single-commodity price fluctuations.
The lasting impact of the Pinnacles restart extends beyond BHM's balance sheet. It underscores the potential for revitalizing historic mining regions through strategic consolidation and modern exploration. The project's contribution to global silver supply, while modest on its own, is a crucial piece in addressing the structural deficit, particularly in supporting the burgeoning green technology sector. Its success will serve as a testament to the viability of reactivating dormant assets in stable jurisdictions to meet future demands for critical minerals.
Investors in Broken Hill Mines (ASX:BHM) and the broader market should closely monitor several key indicators in the coming months. For BHM, critical milestones include the completion of the Phase 1 drilling program and the release of pending assay results (expected through November 2025), the updated Mineral Resource Estimate (MRE) for Pinnacles (first half of 2026), and, crucially, the commencement of open-pit mining operations (first half of 2026). Progress on the Rasp plant's tailings dewatering facility and subsequent production figures will also be vital. While BHM's current valuation metrics suggest high growth expectations, investors should carefully assess operational progress against these valuations. For the broader market, continued strong industrial demand for silver, especially from green energy, will be paramount. Shifts in lead battery market health and global economic conditions, particularly impacting zinc demand, will also influence commodity prices. BHM's transformative journey is set to provide significant news flow and operational developments, making it a company to watch closely in the evolving metals market.
This content is intended for informational purposes only and is not financial advice