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Broken Hill Gold completes third pour at White Dam, funds refurbishment for Vertigo restart

South Australian project produces 174-ounce doré bar from remnant ore as company targets early 2027 open-pit mining

By LineZotpaper
Published
Read Time2 min
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Broken Hill Gold has recorded its third gold pour at the White Dam heap leach project in South Australia, producing a 5.43-kilogram doré bar containing an estimated 174 ounces of gold from remnant ore, with proceeds to fund plant refurbishments ahead of a potential restart of open-pit mining at the nearby Vertigo deposit early next year.

The company announced that cash flow from the pour will be reinvested into a refurbishment program as it works toward restarting mining at Vertigo. A prefeasibility study (PFS) for the Vertigo pit is expected to be completed in the first quarter of 2027, followed by a final investment decision.

The timing is supported by elevated gold prices, which are trading at around US$4,160 an ounce (A$6,000 an ounce), providing a strong economic backdrop for a low-cost heap-leach operation.

Management's decision to accelerate work at Vertigo followed a series of shallow, high-grade gold intercepts from drilling outside the existing open-pit shell earlier this year. The drilling led to a resource upgrade to 2.3 million tonnes grading 0.74 grams per tonne gold, for a total of 54,795 ounces.

Broken Hill Gold managing director Matthew Boyes said: “Achieving our third gold pour at White Dam is another fantastic milestone, confirming the ongoing value we can unlock.”

Refurbishment work will include a full reline of the existing heap leach pad and ponds, with irrigation scheduled to pause in late October to address age-related degradation and legacy design faults. A new carbon-in-column (CIC) recovery tank is also being fabricated to replace the existing unit.

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Analysis

Why This Matters

  • The third pour and planned restart signal that Broken Hill Gold is generating near-term cash flow from remnant ore while advancing a larger mining project.
  • A successful Vertigo restart would add fresh oxide ore to the leach pads by early next year, potentially extending the mine life and supporting local employment.
  • The company's ability to complete refurbishments on time and within budget will determine whether the restart timeline is met.

Background

Heap leach mining involves stacking crushed ore on lined pads and applying a cyanide solution to extract gold, a low-capital method suited to smaller deposits. White Dam is an existing project where remnant ore from previous operations is being processed. The Vertigo deposit sits nearby and has been the focus of recent drilling and resource estimation. Elevated gold prices have improved the economics of restarting operations at such projects.

Key Perspectives

Broken Hill Gold management: Sees the third pour as validation of the project's value and is using cash flow to prepare for a larger mining restart at Vertigo. The company believes the resource upgrade and strong gold price create a solid basis for a final investment decision. Investors and market observers: Will be watching whether the refurbishment program is completed without cost overruns and whether the PFS supports a positive investment decision. The restart depends on both technical execution and continued favourable gold prices. Local stakeholders: A reopened mine could bring economic benefits to the Broken Hill region, though restarting operations also raises questions about environmental management and rehabilitation of the heap leach pads.

What to Watch

  • Completion of the White Dam heap leach pad reline and restart of irrigation after the October pause.
  • Release of the prefeasibility study for Vertigo, due in Q1 2027.
  • The final investment decision and any update to the restart timeline.
  • Movements in the gold price, which directly affects project economics.

Sources

Zotpaper

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