US$101M NPV And 46% IRR For Idaho Project
Bunker Hill Mining Corp. (CSE: BNKR) has reported positive results from its Preliminary Economic Assessment (PEA) for the Bunker Hill Mine in Idaho’s Silver Valley, USA.
The PEA contemplates a US$42 million initial capital cost (including 20% contingency) to rapidly restart the mine, generating approximately US$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 seven million ounces of silver at all-in sustaining costs (AISC) of US$0.65 per payable pound of zinc (net of by-products).
“Our PEA confirms that by maximising the use of existing resources, partnerships and infrastructure, the Bunker Hill Mine has the potential to be re-started rapidly as a low-cost, long life, sustainable operation,” CEO, Sam Ash, said.
“Pleasingly for our investors, the robust financial returns in the PEA, including a US$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.
“Based an annual average free cash flow of US$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.”
Mr Ash said the early and robust cash-flow generated by this restart plan is designed to deliver optimal returns to all stakeholders, creating 150-200 new mining and administrative jobs within the local community, ensuring long-term environmental-management partnerships with the U.S. EPA and IDEQ, and driving the long-term development of the mine’s resources for many years to come.
The Bunker Hill Mine is one of the most storied base metal and silver mines in American history. Initial discovery and development of the property began in 1885, and from that time until the mine closed in 1991 total production from the mine totaled 42.77 million tons at an average grade of 8.43% lead, 3.52 ounces silver per ton and 4.52% zinc.
Through its history the area encompassing the Bunker Hill mine accounts for nearly 42% of the total lead, 41% of the total zinc and 15% of the total silver production in the Coeur d’Alene Mining District.
Over this long, 95+ year history, more than 40 separate mineralized zones were exploited, producing 35 millions tons of ore concentrate, including a total of 165 Moz of silver. The Bunker Hill historical mine is located in the world class silver Coeur d’Alene Mining District.
