ASX silver share Broken Hill Mines Ltd (ASX: BHM) is 91 cents apiece on Thursday, down 6.19%.
Broken Hill Mines used to be Coolabah Metals, a company that first began trading on the ASX in 2022.
The company requested and was granted a suspension in August last year pending a material acquisition and re-compliance transaction.
After completing a reverse-acquisition and capital raise, Broken Hill Mines shares began trading on 21 July, opening at 41.5 cents.
Had you put just $3,000 into this ASX small-cap silver share then, your shareholding would be worth $6,577 today.
Let's find out more about why this stock has skyrocketed in recent months.
Image source: Getty Images
Why is this ASX silver share on fire?
The reverse acquisition fundamentally changed the nature of the company, with new assets giving it more investment appeal.
At the same time, the silver price has more than doubled this year to record highs. Today, silver is worth US$58 per ounce.
Broken Hill Mines has two historical silver, lead, and zinc mines.
It owns 100% of Rasp and 70% of Pinnacles, and is further developing both.
The company reckons Rasp is the world's largest silver, lead, and zinc deposit with a Mineral Resource Estimate (MRE) of 10.1Mt at 9.4% ZnEq (5.7% Zn, 3.2% Pb, and 49g/t Ag).
The mine is currently operational and producing approximately 30,000 tonnes of silver-lead-zinc ore per month.
The on-site concentrator can process up to 750,000 dry metric tonnes of silver-lead-zinc ore per annum.
Pinnacles was placed into care and maintenance in 2020 due to the pandemic and is not operational as yet.
However, ongoing drilling is designed to grow the MRE, which is currently 6Mt at 10.9% ZnEq (4.7% Zn, 3.3% Pb, & 132g/t Ag).
The exploration target is up to 15Mt at 2%-4% Zn, 3%-6% Pb, and 40-125g/t Ag.
This year, the silver commodity price has ripped due to higher demand for silver for defence systems and clean energy technologies.
Billionaire metals investor Eric Sprott told Kitco News in March that the silver price could go to US$250-US$500 over the next 10 years.
Last month, the US Geological Survey (USGS) added silver to the nation's critical minerals list, demonstrating its growing importance.
The Silver Institute says 2025 has been "a dramatic year for the silver market".
What's the latest news from Broken Hill Mines?
Today, Broken Hill Mines announced a mining and processing ramp-up at Rasp.
The explorer also released new assay results from drilling of Rasp's main ore lode, specifically in the Blackwoods zone.
As stated earlier, Rasp has a total MRE of 10.1Mt at 9.4% ZnEq (5.7% Zn, 3.2% Pb, and 49g/t Ag).
To date, the Blackwoods zone's contribution is 490kt at 18.3% ZnEq (8.3% Zn, 7.5% Pb, & 156g/t Ag).
The new drilling results include significant high grade mineralisation of 3m at 1,426g/t AgEq and thick intercepts up to 37.2m at 314g/t AgEq.
These results come from outside the existing MRE for Blackwoods, indicating the total MRE for Blackwoods and Rasp will likely rise.
Broken Hill Mines said:
BHM remains on target to launch an expanded 17,000m drilling program at the Rasp Mine in 2026, focused on further resource extensions of the Main Lode ore body.
The company also intends to begin first mining activities at Pinnacles in 2026.
The miner hopes its Rasp and Pinnacles operations next year will enable full utilisation of Rasp's 750,000tpa capacity processing plant.
