Gold Rush Revival in Broken Hill: A New Chapter for SA’s Mining Industry

The announcement from Broken Hill Gold about a significant upgrade to its gold resource at the Vertigo prospect in South Australia has sent ripples through the mining sector. The 160% increase in indicated oxide gold resource is a notable achievement, particularly when considered as part of a broader drilling campaign aimed at unlocking the full potential of White Dam.

The total indicated and inferred resource at Vertigo now stands at 2.30 million tonnes at 0.74 grams per tonne (g/t) gold for 54,795 ounces, representing a healthy 43% jump on its 2020 estimate. This upgrade is not merely about adding to the bottom line; it also marks a crucial step in advancing projects towards production, as the new drilling results have helped convert inferred material to indicated.

The prospect of deeper sulphides at Vertigo has geologists particularly excited. According to Broken Hill Gold managing director Matthew Boyes, “The real story developing here at White Dam is the sulphide gold potential this system contains.” With approximately 55koz of gold in mineral resource already identified at Vertigo, the grade increases as you go deeper, making this a highly promising area for further exploration.

A Fresh-Rock Gold-Copper System

Broken Hill Gold’s nearby Icebreaker deposit has shown promise in terms of a fresh-rock gold-copper sulphide system carrying both gold and copper. Standout results include 28m at 2.4g/t gold and 0.7% copper from 93m. However, the fresh-rock resource at Vertigo remains entirely inferred, requiring drilling to establish its extent.

The fact that the sulphide potential at Vertigo is still largely untested presents a significant opportunity for Broken Hill Gold. The company has planned eight holes across 650m of strike to probe potential extensions 200m down-dip, which will provide crucial data on the size and grade of the sulphide system. Positive results could pave the way for a major gold-copper discovery at Vertigo.

A Brownfields Advantage

One often-overlooked aspect of new mining projects is the importance of brownfields development. White Dam has a proven track record, having produced roughly 180,000oz from 7.5Mt at 0.94g/t between 2010 and 2018. This existing infrastructure gives Broken Hill Gold a significant head start over a greenfields build, allowing it to focus on advancing the project towards production.

A New Era for South Australian Mining

The upgrade in gold resource at Vertigo is part of a broader trend in South Australia’s mining industry. Recent discoveries and exploration results have shown that the region still has plenty to offer, from shallow oxide gold deposits to deeper sulphide systems. As Broken Hill Gold advances its project, it will be watching closely as other companies explore their own prospects in the region.

In the short term, Broken Hill Gold’s focus will remain on advancing the Vertigo prospect and testing the potential of deeper sulphides. A significant drilling campaign over the next 18 months is planned, which will provide crucial data on the size and grade of the sulphide system. Positive results could pave the way for a major gold-copper discovery at Vertigo.

As the mining industry continues to evolve, one thing is clear: South Australia’s Broken Hill region remains a hotspot for exploration and development. With its rich geological history and existing infrastructure, White Dam has all the ingredients for a successful mining project. As Broken Hill Gold embarks on this new chapter in its story, it will be fascinating to see how things unfold. Will Vertigo become a major gold-copper discovery? Only time – and drilling results – will tell.