Broken Hill Gold Grows White Dam Resource 20% as Sulphide Upside Emerges
Key Takeaways
- The Vertigo Indicated oxide resource has increased 160% to 24,300oz Au, with the total White Dam project resource now standing at approximately 118,496oz Au (~120koz), a circa 20% increase in total ounces.
- A mining study is now underway on oxide heap leach material, with a pre-feasibility study to follow once remaining oxide resources are drilled and MREs updated — placing a production restart pathway firmly on the near-term agenda.
- Eight exploration holes over a 650m strike length have commenced to test 200m down-dip extensions of the Vertigo sulphide zone, where both gold and copper grades increase with depth.
- A second multipurpose RC/Diamond rig has been mobilised to site, enabling oxide resource definition and sulphide target drilling to proceed concurrently rather than sequentially.
- The $13M placement announced 31 July 2026 provides the funding runway to advance both exploration and production restart activities across White Dam.
Vertigo indicated resource surges 160% as White Dam’s dual-strategy takes shape
Broken Hill Gold (ASX: BH6) has delivered a significant resource update at its White Dam Gold Project in South Australia, with the Vertigo Indicated oxide resource increasing by 160% to 24,300oz Au. The global White Dam project resource now stands at approximately 118,496oz Au (roughly 120koz), representing a circa 20% increase in total ounces.
This is the first of multiple planned Mineral Resource Estimate (MRE) updates as the company’s aggressive drill programme continues across White Dam’s suite of oxide and sulphide targets.
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Q1 FY27 MRE highlights at a glance
- Vertigo Indicated oxide resource increased to 24,300oz Au, up 160%
- Global project resource grows to approximately 120koz Au (~118,496oz Au total)
- Mining study now underway on oxide heap leach material, with a pre-feasibility study (PFS) to follow once remaining oxide resources are drilled and MREs updated
- Significant down-dip sulphide potential identified; 8 exploration holes over a 650m strike length commencing to test extensions 200m down-dip
- Second multipurpose RC/Diamond rig mobilised to site; $13M placement (announced 31 July 2026) provides funding runway for exploration and production restart activities
Inside the Vertigo MRE — what the numbers reveal
The total Vertigo deposit now stands at 2,300,211t at 0.74g/t Au for 54,795oz Au, compared to the 2020 GBM Resources estimate of 1.7Mt at 0.7g/t Au for 38.3koz Au. That represents a 43% increase in contained gold, underpinned by 279 RC holes drilled by BH6 during 2025–2026 (approximately 13.5km of drilling), which account for around 51% of all drill metres in the current MRE.
Critically, all Indicated mineralisation is shallow and outcropping, sitting within an existing Mining Lease. That combination makes the oxide material heap-leach restart-ready in a way that deeper, less-defined mineralisation simply is not.
The Inferred fresh material sits at 1.12g/t Au, and notably, grade increases with depth — a key signal for the sulphide upside story discussed below.
The MRE was prepared by independent consultants Entech Pty Ltd and is reported in accordance with the JORC Code 2012. It is informed by 26,403m of drilling from 500 drill holes (21 diamond drill holes and 479 reverse circulation holes), with an effective date of September 2026.
| Deposit | Resource Category | Grade Au (g/t) | Contained Gold (oz) |
|---|---|---|---|
| Hannaford | Indicated | 0.7 | 16,400 |
| Hannaford | Inferred | 0.8 | 26,900 |
| Hannaford | Total | 0.8 | 43,300 |
| Vertigo | Indicated | 0.5 | 24,300 |
| Vertigo | Inferred | 1.1 | 30,496 |
| Vertigo | Total | 0.7 | 54,795 |
| Icebreaker | Indicated | 0.4 | 2,800 |
| Icebreaker | Inferred | 0.6 | 17,600 |
| Icebreaker | Total | 0.5 | 20,400 |
| WHITE DAM TOTAL | Indicated | 0.6 | 43,500 |
| WHITE DAM TOTAL | Inferred | 0.8 | 74,996 |
| WHITE DAM TOTAL | Grand Total | 0.7 | 118,496 |
Source: 2026 White Dam MRE (JORC 2012), Table 3 from ASX announcement dated 21 September 2026. Mineral Resources are not Ore Reserves and do not have demonstrated economic viability.
What Indicated vs Inferred means for investors
The JORC Code 2012 classifies mineral resources into three confidence levels: Inferred (lowest confidence, based on limited data), Indicated (moderate confidence, supported by adequate drilling), and Measured (highest confidence, suitable for underpinning mine plans and feasibility studies).
The distinction matters enormously for investors. Indicated Resources carry enough geological confidence to inform preliminary economic assessments and mine scheduling, whereas Inferred Resources carry a caveat: there is no certainty that further exploration will result in their conversion to Indicated or Measured classification.
BH6’s drilling campaign has already converted meaningful Inferred material to Indicated at Vertigo. With infill and expansion drilling continuing across multiple targets, further upgrades are anticipated as additional MRE updates are released.
The sulphide story — where the real upside lives
The oxide heap leach restart is the near-term value driver at White Dam. But Managing Director Matthew Boyes is pointing investors toward something larger sitting beneath it.
The identification of gold-copper targets at White Dam preceded this MRE update, with BH6 systematically building the geological case for sulphide upside across Icebreaker, Vertigo and Hannaford before committing to the current two-rig programme.
The Vertigo orebody is a thick, flat-dipping (approximately -15 degrees) tabular zone extending over 900m of strike. Both gold and copper grades increase with depth, and the orebody remains entirely open down-dip beyond the current pit limits. Historical fine-grind cyanide testwork indicates that nearly all gold is recoverable from a finely ground (120µm) sample, consistent with standard CIL (Carbon-in-Leach) circuits. CIL is a conventional gold processing method where cyanide solution dissolves gold, which is then recovered onto activated carbon.
Eight exploration holes over a 650m strike length were scheduled to commence imminently from the announcement date, targeting 200m down-dip extensions of the Vertigo sulphide zone.
Matthew Boyes, Managing Director, Broken Hill Gold
“The real story developing here at White Dam is the sulphide gold potential this system contains. We know from cyanide leach work previously carried out that nearly all the gold is recoverable from a finely ground (120µm) sample, similar to standard CIL circuits all over Australia.”
He added:
“I am confident that White Dam will demonstrate the potential to deliver a significant Gold-Copper project as further drilling results are received.”
Three targets, one accelerating drill programme
The sulphide programme is organised around three major targets:
- Icebreaker — a newly identified sulphide gold-copper discovery on the Mining Lease, to be drilled by the second RC/Diamond rig now mobilised to site
- Vertigo sulphide — the down-dip extension of the existing Vertigo deposit, with 8 holes over 650m strike commenced to test the 200m down-dip potential
- Hannaford sulphide — strong gold grades identified in previous drilling directly below the pit floor; the announcement notes this target has never been systematically drilled
The arrival of the second multipurpose RC/Diamond rig at site allows BH6 to pursue oxide resource definition and sulphide targets concurrently, rather than sequentially.
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Near-term milestones and what investors should watch
The project has a dense near-term news flow ahead. Key items to monitor include:
- Mining study underway on oxide heap leach material, with a PFS to follow once remaining oxide resources are drilled and MREs updated
- Vertigo sulphide down-dip drilling (8 holes, 650m strike) commenced following the announcement date
- Hannaford East oxide drilling continuing
- Metallurgical column tests commencing October (samples from Vertigo East and North)
- Geophysical studies expected to be completed on schedule by mid-October, targeting Icebreaker, Mary Mine and Vertigo
- Further MRE updates anticipated as infill and expansion drilling results are received
On the financial side, the $13M placement announced on 31 July 2026 provides the company with funding to advance both exploration and production restart activities across the White Dam project. The placement price was not disclosed in this 21 September 2026 announcement.
With a funded two-rig drill programme, multiple MRE updates anticipated, and both an oxide heap leach restart pathway and a growing sulphide inventory in play simultaneously, White Dam is shaping up as a layered gold-copper story with catalysts spread across the near, medium and longer term.
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