(Kitco News) - New energy infrastructure like solar panels and wind farms requires zinc, said Bunker Hill Mining (CSE:BNKR) Executive Chairman Richard Williams.
Last month, Williams spoke to Kitco at the Deutsche Goldmesse conference in Frankfurt, Germany.
Williams' company is planning to restart Bunker Hill Mine, located in Idaho, U.S., by the end of 2023.
Production began at the mine in the late 1800s. The mine produced more than 165 million ounces of silver and 5 million tons of base metals over nearly 100 years.
Legacy mining practices resulted in the mine becoming a Superfund site in the '80s. Following its closure and as part of a regional environmental clean-up operation run by the U.S. government, the mine's lead smelter and zinc processing plant were dismantled and its water discharge was treated by a government-run water treatment facility.
In the company's presentation, the plan is to unlock high-grade silver potential at depth. The company's preliminary economic assessment shows a $143M NPV, 35% IRR, 2.6-year payback, $44M CAPEX, $25M average annual free cash flow over 11 years.
Williams sees demand for the mine's metals needed for the energy transition.
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The mine's location in North America is also an advantage due to rising geopolitical concerns and the need to secure supplies of commodities.
Asked how to assess a junior resources company's environmental social governance, Williams said you have to look beyond the documents and what decisions the company made.
"There's law and regulations, and then there's attitude," said Williams. "It really isn't just the people on the ground. It's how that company has been allocating capital, because we're in the business of mining to make money but make money sustainably, so how much of every dollar is allocated to ensuring the mine is sustainable and how much risk is carried by investments that aren't made."
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Kitco's coverage of Deutsche Goldmesse was sponsored by Defiance Silver.
