Yes.Just to be completely clear... there is a "map" card which lets you peek at one of the three possible treasure locations, which you are allowed to play. I can't remember the official game terminology, but as you are quite correctly asserting, when you have broken equipment the only cards you cannot play are new path cards.
The only cards you cannot play are map cards.
You can play any of the action (white bordered) cards.
You can break other equipment, repair equipment, cause cave-ins, and get a peek at a treasure card.