Bunker Hill Mining Corp. (BNKR:CSE; BHLL:OTCMKTS) announced in a news release the findings of a preliminary economic assessment (PEA) of restarting the Bunker Hill mine in Idaho.
"Our PEA confirms that by maximizing the use of existing resources, partnerships and infrastructure, the Bunker Hill mine has the potential to be restarted rapidly as a low cost, long life, sustainable operation," CEO Sam Ash said in the release.
The report outlined an operation that will produce 550,000,000 pounds (550 Mlb) of zinc, 290 Mlb lead and 7,000,000 silver over 10 years of mine life. In other words, it will produce 912 Mlb of zinc equivalent at a grade of 9.3%.
The project economics are shown to be robust with the mine generating an average of $20 million per year of free cash flow and EBITDA of $30 million over the 10 years, payback in 2.5 years, a net present value of $101 million and an internal rate of return of 46%.
To restart the mine, initial capex is estimated to be $42 million, to be paid over the first 15 months. All-in sustaining costs are forecasted at $0.65 per payable pound of zinc, net of byproducts.
Bunker Hill Mining noted that the Bunker Hill project also offers significant upside by way of ongoing high-grade silver exploration and resource expansion, to be funded by cash flow generated by the operation.
The company also indicated that a Bunker Hill restart will provide the local community, Shoshone County, with 150–200 new mining and administrative jobs and other benefits.
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