Bunker Hill PEA envisages rapid restart

21st April 2021

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online


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Under new Idaho-based leadership, Bunker Hill Mining on Tuesday announced the results of a preliminary economic assessment (PEA) for its iconic namesake mine, envisaging a rapid restart at a capital cost of $42-million.

The Bunker Hill mine, located in Idaho’s Silver Valley, will generate about $20-million a year of average free cash flow over a ten-year mine life and produce 550-million pounds of zinc, 290-million pounds of lead and seven-million ounces of silver at an all-in sustaining cost of $0.65/lb of payable zinc.

Pleasingly for investors, the PEA delivered robust financial returns, including a $101-million net present value, 46% internal rate of return, and 2.5-year payback.

“Based on annual average free cash flow of $20-million at metal prices below spot levels, we can self-fund these exploration efforts while continuing to grow the company. We look forward to progressing further technical studies and project finance discussions over the coming months,” said CEO Sam Ash.

Restarting the mine, which closed in 1981, would create 150 to 200 new mining and administrative jobs in the local community.

Bunker Hill’s leadership team comprises former executives from Barrick Gold.

Edited by Creamer Media Reporter


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