Delayed Approvals Could Stall Blackwoods Ramp-Up Despite Early Ore Access
Broken Hill Mines has commenced mining and processing of the high-grade Blackwoods ore body at its Rasp Mine ahead of schedule, boosting exposure to precious metals amid soaring silver prices.
- Mining and processing underway at Blackwoods ore body within Main Lode
- High-grade silver-lead-zinc feed complements existing Western Mineralisation
- Ore development completed ahead of planned November 2025 start
- Ramp-up of ore feed targeted through FY26 with expanded stoping operations
- Supports full utilisation of Rasp plant’s 750,000 tonnes per annum capacity
Mining Milestone Achieved Ahead of Schedule
Broken Hill Mines Limited (ASX – BHM) has announced a significant operational milestone with the commencement of mining and processing from the Blackwoods ore body, part of the Main Lode at its flagship Rasp Mine. This marks the first underground mining of the Main Lode since the 1970s and was achieved ahead of the initially targeted November 2025 timeline.
The Blackwoods ore body is notable for its materially elevated silver grades, which provide Broken Hill Mines with enhanced exposure to precious metal revenues. This is particularly timely as silver prices approach historic highs near US$50 per ounce, underscoring the strategic value of this high-grade feed.
Complementing Existing Operations and Maximising Plant Capacity
The newly accessed Blackwoods ore feed is set to complement the existing Western Mineralisation feed, together supporting the full utilisation of the Rasp plant’s 750,000 tonnes per annum processing capacity. This integration is a key component of Broken Hill Mines’ strategy to optimise throughput and maximise resource extraction efficiency.
Recent assay results from Blackwoods have demonstrated impressive grades, with intercepts showing zinc equivalent grades exceeding 30% and silver equivalent grades surpassing 1,000 grams per tonne in several drill holes. These high-grade intercepts extend beyond the current Mineral Resource Estimate, indicating potential for further resource expansion.
Outlook and Development Plans
Following the completion of underground development drives, Broken Hill Mines plans to ramp up ore feed from Blackwoods throughout the 2026 financial year. Additional stoping operations are scheduled for the first quarter of calendar year 2026, contingent on the expansion of existing project approvals. This phased approach aims to steadily increase production volumes while maintaining operational flexibility.
The Rasp Mine itself holds a storied history, with the Main Lode discovered in 1885 and mined intermittently for over 140 years. Broken Hill Mines owns 100% of the Rasp Mine through its subsidiary, Broken Hill Operations Pty Ltd, positioning the company to fully capitalise on this high-grade resource.
Strategic Implications Amid Rising Silver Prices
The timing of this development is particularly advantageous given the upward trajectory of silver prices globally. By unlocking the Blackwoods ore body, Broken Hill Mines enhances its precious metals exposure, potentially improving revenue streams and strengthening its market position. Investors will be watching closely as ramp-up progresses and further assay results become available, which could inform future resource upgrades and production guidance.
Bottom Line?
Broken Hill Mines’ early access to Blackwoods ore sets the stage for a stronger silver-focused production profile in 2026.
Questions in the middle?
- How quickly can Blackwoods ore feed ramp up to full capacity?
- What impact will expanded project approvals have on production volumes?
- Could further drilling extend the high-grade resource beyond current estimates?
