Name of the Project
Bunker Hill zinc/lead/silver mine restart project.
Location
Silver Valley, Idaho, in the US.
Project Owner/s
Bunker Hill Mining Corp.
Project Description
A preliminary economic assessment (PEA) has concluded that the project has the potential to be rapidly restarted as a low-cost, long-life, sustainable operation.
The project has total indicated mineral resources of 4.41-million ton grading 2% lead, 0.69 oz/t silver and 5.52% zinc. Total inferred mineral resources are estimated at 5.62-million tons grading 2.77% lead, 1.48 oz/t silver and 4.88% zinc.
Over the ten-year life-of-mine the project is expected to produce about 555.98-million pounds of zinc, 290.16-million pounds of lead and 7.4-million ounces of silver. Zinc equivalent production is estimated at 911.77-million pounds.
The project will use pre-existing infrastructure.
Improvements include:
- the connection of 5 and 9 levels with an access ramp;
- the removal and replacement of the Shaft 1 hoist and works;
- the reconditioning of the Shaft 2 hoist and hoist works;
- the reconditioning of shafts 1 and 2, and replacing the existing rail with a modular track system and associated conveyances;
- the installation of new mine-wide power distribution;
- the installation of fibre-optics and communications systems from the surface to the main underground facilities;
- the installation of a backfill paste plant on 5 Level;
- the installation of a primarily gravity backfill distribution system to active and historical mining areas;
- reconditioning the Kellogg tunnel and removing the existing rail to convert to rubber tyre access;
- introducing rubber tyre development to the stopes as required;
- vertical development for muck passes, escapeways and ventilation;
- excavations for milling, flotation and backfilling equipment;
- fan and air control installations; and
- a tailings water treatment plant.
The PEA envisages a crushing and milling plant to be centrally located on 9 Level.
Potential Job Creation
The project is expected to create 150 to 200 new mining and administrative jobs in the local community.
Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $100.74-million and an internal rate of return of 46.2%, with a payback of 2.5 years.
Capital Expenditure
The project will require an initial capital expenditure of $42.03-million.
Planned Start/End Date
Not stated.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
MineTech USA, in coordination with Pro Solv Consulting (mine infrastructure development, capital and operating expenditures of the PEA, as well as portions of the mine plan and operating schedules);
Contact Details for Project Information
Bunker Hill Mining Corp, email ir@bunkerhillmining.com.