Coolabah Metals will formally enter the binding joint venture agreement for mining operations at the Pinnacles silver-lead-zinc mine in Broken Hill

By Olivia Thomson via Australian Mining

Coolabah exercised its option under its heads of agreement (HOA) with Pinnacles Mines and Broken Hill Pinnacles by paying the second option fee worth $600,000.

Coolabah will now become the exclusive operator of Pinnacles, which currently has a mineral resource estimate of six million tonnes at 10.9 per cent zinc equivalent.

Originally announced in September 2024, the binding joint venture agreement aimed to gather two of the three companies controlling all current silver-lead-zinc operations in Broken Hill, an iconic mining region.

Simultaneously, Coolabah revealed it would acquire 100 per cent of the issued capital in Broken Hill Mines, which held a binding agreement to acquire the Rasp silver-lead-zinc mine and associated assets alongside the binding BOA for Pinnacles.

The company confirmed it had completed the acquisition of Rasp and its associated assets in October 2024.

Mined ore from Pinnacles will now be transported and processed at the Rasp processing plant located 15km away and, in honour of the Rasp and Pinnacles transactions being finalised, Coolabah will soon be renamed to Broken Hill Mines.

Under an agreed net smelter return calculation, Coolabah will receive 70 per cent of the profits generated from Pinnacles’ operations, while Pinnacles Mines and Broken Hill Pinnacles will receive the balance.

Coolabah, Pinnacles Mines and Broken Hill Pinnacles are now progressing a standard operating agreement to document future mining operations at Pinnacles.