Bunker Hill delivers robust restart PEA for eponymous mine in Idaho
(Kitco News) - Bunker Hill Mining (CSE: BNKR) today reported the results of its Preliminary Economic Assessment ("PEA") for the Bunker Hill mine in Idaho's Silver Valley, USA.
The PEA highlights include: $101 million NPV, 46% IRR, and 2.5-year payback at $1.15/lb Zn, $0.90/lb Pb, $20.00/oz Ag.
The company noted that PEA contemplates a $42 million initial capital cost (including 20% contingency) to rapidly restart the mine, generating approximately $20 million of annual average free cash flow over a 10-year mine life, and producing over 550 million pounds of zinc, 290 million pounds of lead, and 7 million ounces of silver at all-in sustaining costs of $0.65 per payable pound of zinc (net of by-products).
Bunker Hill pointed out that PEA confirms the Bunker Hill mine has the potential to be re-started rapidly as a low-cost, long life, sustainable operation. The company said that based an annual average free cash flow of $20 million at metal prices below spot levels, it can self-fund exploration efforts while continuing to grow.
The Bunker Hill mine is located in the historic Coeur d'Alene Mining District in Kellogg, Idaho at the base of Silver Mountain. It was operated from 1885 until 1981 when it was closed due to low metal prices, an extended labor strike, and capital short-falls required to meet new environmental standards.
The PEA includes a mining inventory of 5.5Mt, which represents a portion of the 4.4Mt Indicated mineral resource and 5.6Mt Inferred mineral resource. Given the 10-year mine life, the mine plan has been based on prioritizing higher-grade material.