Streetwise Live! News Flash from Nevada Exploration on 05/04/2021. Learn More

Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

News Update


'Robust' PEA for Restart of Idaho Mine
News Update

Share on Stocktwits


This report for Bunker Hill Mining's namesake mine outlines a low cost operation.

Bunker Hill Mining Corp. (BNKR:CSE; BHLL:OTCMKTS) released 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 million pounds (550 Mlb) of zinc, 290 Mlb of lead and 7 million ounces of 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 company called the project economics 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.

"The robust financial returns in the PEA, including a $101 million NPV, 46% IRR, and 2.5 year payback, do not include the significant upside to come from the on-going high-grade silver exploration which we expect to further increase cash flow margins," Ash said. "Based an 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," Ash added.

The company also indicated that a Bunker Hill restart will provide the local community, Shoshone County, with 150ľ200 new mining and administrative jobs and other benefits.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Bunker Hill. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Bunker Hill. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Bunker Hill, a company mentioned in this article.

Want to read more about Base Metals and Silver investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe