Bunker Hill Mining Corp. (the “Company”) (TSXV: BNKR) (OTCQB:
BHILL) is pleased to provide an update on restart project
activities during Q3 of 2023.
Sam Ash, CEO, said: “The execution of our Bunker
1.0 (1800tpd) restart project remains on time and budget; and is
testament to the leadership and skill of the team. This allows us
to focus on other value-creating opportunities, including the
Bunker 2.0 (2500tpd) mine plan, which will be shared with the
market during Q4 2023.”
A FIT FOR PURPOSE BASE FOR MINING
OPERATIONS
During the course of August and September, the
Wardner Operating Yard, the base for Bunker Hill’s mining
operations, underwent a significant transformation. This included
the removal of the old, prefabricated concrete (10’ x 10’) portal
and its replacement with upsized steel arch sets (16’ x 16’)
supported with bespoke lagging. This enlarged Russell Portal
supports the planned 1800tpd operation with significant additional
upside capacity and allows easy access/egress for the mine and its
fleet of 20ton+ trucks and 4-6yd Loaders. Whilst this work was
underway, executed by GMS Mine Repair & Maintenance based out
of Maryland, the Bunker Hill team also completed procurement of a
new 300hp Beckwith & Kuffel compressor and a 7ft 400hp mainline
fan (and starter), both of which will be installed before the end
of the year.
Additional activity in support of mining
operations during this period included the following: the
refurbishment on site of multiple electrical transformers by
Industrial Support Service LLC; rehabilitation of the surface
warehouse and workshop at Wardner; the rehabilitation and insertion
of ladders into a 100ft section of the Cherry Raise that ensures
the mine will have not one but two secondary escapeways (or a
tertiary escapeway option) when in operation; and a substantial
increase in yard laydown area due to the tactical dumping of waste
from the portal work.
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Initial earthwork in support of portal. |
First set of steel sets being positioned. |
Spreaders inserted prior to burying steel sets. |
CONNECTION TO MAINLINE
POWER
In parallel with the portal upgrade, Bunker Hill
also partnered with Avista Utilities and Wilson Construction Co. to
connect the Wardner footprint with mainline power. This work, now
completed, equips the site with 1.85MW of electricity, generated
through the hydroelectric-dominated supply of the Pacific
Northwest, at rates of below 6c per kwh as the operation gets
underway and below 5c per kwh as cumulative electrical usage ramps
up and the operation falls into the highest-usage category. This is
a significant milestone for Bunker Hill’s operating cost base and
for the first time gets the site away from an almost exclusive
reliance on diesel generators at Wardner.
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Figure 1: Avista Utilities
working to install upgraded power from the nearby substation up
Division Street in Wardner and to site. |
Figure 2: Wilson Construction Co.
installing overhead powerlines on Bunker Hill property. |
Figure 3: Overhead power
installation complete at Wardner. |
PROCESSING AND TAILINGS
FACILITIES
Engineering of the main Process Plant is
advancing on track with deep pier establishment scheduled to
commence in the next month as part of geotechnical stabilization
and preparation of the land for the construction of the Process
Plant itself. All main civil, structural and mechanical outputs are
on track to be at IFC before year end and long-lead procurement has
resulted in purchase orders having already been issued for the Pre
Engineered Metal Building (PEMB), ore silo, conveyors, Ball Mill
starter motor, thickeners tanks and inching drive. Refurbishment of
the Pend Oreille mill equipment, the source of the overwhelming
majority of mill components, is now underway in the refurbished
Motor Barn on site.
The Bunker Hill team hosted an onsite visit by
Ausenco, which is leading on the design and engineering of the
Filtration Plant and Paste Plant, on 3-4 October 2023. This visit
identified the potential for some pre-existing structures in
Wardner to be repurposed to help house the Paste Plant. Tierra
Group International, which is leading on the Dry Stack design and
engineering, the second part of Bunker Hill’s dual tailings
solution, has started to issue preliminary designs for a Life of
Mine facility on the Bunker Hill footprint. Further geotechnical
work in support of these designs is scheduled to commence on 18
October 2023.
Preliminary Dry Stack Tailings Storge Facility
designs for Bunker Hill
RECRUITING
The team continues a careful upwards recruiting trajectory and
is currently onboarding a Maintenance Planner, Chief Geologist and
Site Controller. Additional Mine Engineering personnel are coming
on board in early 2024. Further to a previous Management Update (14
August 2023), the new CFO is expected to start on or around the
beginning of November.
14 Oct - Newly completed and enlarged Russell
Portal
QUALIFIED PERSON
Mr. Scott E. Wilson, CPG, President of RDA and a
consultant to the Company, is an independent “qualified person” as
defined by NI 43-101 and is acting as the qualified person for the
Company. He has reviewed and approved the technical information
summarized in this news release.
The Qualified Person has verified the
information disclosed herein, including the sampling, preparation,
security and analytical procedures underlying such information, and
is not aware of any significant risks and uncertainties that could
be expected to affect the reliability or confidence in the
information discussed herein.
ABOUT BUNKER HILL MINING
CORP.
Under new Idaho-based leadership Bunker Hill
Mining Corp, intends to sustainably restart and develop the Bunker
Hill Mine as the first step in consolidating a portfolio of North
American mining assets with a focus on silver. Information about
the Company is available on its website, www.bunkerhillmining.com,
or within the SEDAR+ and EDGAR databases.
For additional information
contact:
Corporate Secretary+1 208 370
3665ir@bunkerhillmining.com
Cautionary Statements
The TSX Venture Exchange (the “TSX-V”) has
neither approved nor disapproved the contents of this news
release. Neither the TSX-V nor its Regulation Services
Provider (as that term defined in the policies of the TSX-V)
accepts responsibility for the adequacy or accuracy of this
release.
Certain statements in this news release are
forward-looking and involve a number of risks and uncertainties.
Such forward-looking statements are within the meaning of that term
in Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, as
well as within the meaning of the phrase ‘forward-looking
information’ in the Canadian Securities Administrators’ National
Instrument 51-102 – Continuous Disclosure Obligations
(collectively, “forward-looking statements”). Forward-looking
statements are not comprised of historical facts. Forward-looking
statements include estimates and statements that describe the
Company’s future plans, objectives or goals, including words to the
effect that the Company or management expects a stated condition or
result to occur. Forward-looking statements may be identified by
such terms as “believes”, “anticipates”, “expects”, “estimates”,
“may”, “could”, “would”, “will”, or “plan” or variations of such
words and phrases. Since forward-looking statements are based on
assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Although
these statements are based on information currently available to
the Company, the Company provides no assurance that actual results
will meet management’s expectations. Risks, uncertainties and other
factors involved with forward-looking statements could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
statements.
Forward looking statements in this news release
include, but are not limited to: the Company’s intentions regarding
its objectives, goals or future plans and statements, including the
timing and budget of the planned restart of the Bunker Hill Mine;
estimations of the supply of power to the Russell Portal and the
benefits of same; the benefits of the Wardner Yard upgrades; the
expected budget and estimated completion time for the UG upgrades,
processing and tailing facilities, and operating yard, including
further geotechnical, design and engineering work in support
thereof; the publication and timing for a PEA and the mine plan;
the procurement of purchase orders and the timing for and
installation of operational equipment; the recruitment of
additional personnel; the expected start date of the new CFO;
revenue potential opportunities from mining and the sale of ore;
increases in cash flow; and the Company’s seeking other
value-creating opportunities. Factors that could cause actual
results to differ materially from such forward-looking statements
include, but are not limited to the Company’s inability to raise
sufficient capital for its operations; the ability to predict and
counteract the effects of COVID-19 on the business of the Company,
including but not limited to the effects of COVID-19 on the price
of commodities, capital market conditions, restriction on labour
and international travel and supply chains; failure to identify
mineral resources; failure to convert estimated mineral resources
to reserves; the inability to complete a feasibility study which
recommends a production decision; the preliminary nature of
metallurgical test results; the Company’s ability to restart and
develop the Bunker Hill Mine and the risks of not basing a
production decision on a feasibility study of mineral reserves
demonstrating economic and technical viability, resulting in
increased uncertainty due to multiple technical and economic risks
of failure which are associated with this production decision,
including, among others, areas that are analyzed in more detail in
a feasibility study, such as applying economic analysis to
resources and reserves, more detailed metallurgy and a number of
specialized studies in areas such as mining and recovery methods,
market analysis, and environmental and community impacts and, as a
result, there may be an increased uncertainty of achieving any
particular level of recovery of minerals or the cost of such
recovery, including increased risks associated with developing a
commercially mineable deposit with no guarantee that production
will begin as anticipated or at all or that anticipated production
costs will be achieved; failure to commence production would have a
material adverse impact on the Company's ability to generate
revenue and cash flow to fund operations; failure to achieve the
anticipated production costs would have a material adverse impact
on the Company's cash flow and future profitability; delays in
obtaining or failures to obtain required governmental,
environmental or other project approvals; political risks; changes
in equity markets; uncertainties relating to the availability and
costs of financing needed in the future; the inability of the
Company to budget and manage its liquidity in light of the failure
to obtain additional financing, including the ability of the
Company to complete the payments pursuant to the terms of the
agreement to acquire the Bunker Hill Mine Complex; inflation;
changes in exchange rates; fluctuations in commodity prices; delays
in the development of projects; capital, operating and reclamation
costs varying significantly from estimates and the other risks
involved in the mineral exploration and development industry; and
those risks set out in the Company’s public documents filed on
SEDAR+ and EDGAR. Although the Company believes that the
assumptions and factors used in preparing the forward-looking
statements in this news release are reasonable, undue reliance
should not be placed on such information, which only applies as of
the date of this news release, and no assurance can be given that
such events will occur in the disclosed time frames or at all. The
Company disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, other than as required by
law. No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained
herein.
Cautionary Note to United States
Investors Concerning Estimates of Measured, Indicated and Inferred
Mineral Resources
This news release has been prepared in
accordance with the requirements of the securities laws in effect
in Canada, which differ from the requirements of U.S. securities
laws. Unless otherwise indicated, all resource and reserve
estimates included in this news release have been disclosed in
accordance with NI 43-101 and the Canadian Institute of Mining,
Metallurgy, and Petroleum (“CIM”) Definition Standards on Mineral
Resources and Mineral Reserves. NI 43-101 is a rule developed by
the Canadian Securities Administrators which establishes standards
for all public disclosure an issuer makes of scientific and
technical information concerning mineral projects. The terms
“mineral reserve,” “proven mineral reserve” and “probable mineral
reserve” are Canadian mining terms as defined in accordance with NI
43-101 and the CIM standards. Pursuant to subpart 1300 of
Regulation S-K (“S-K 1300”), the U.S. Securities and Exchange
Commission (the “SEC”) now recognizes estimates of “measured
mineral resources,” “indicated mineral resources” and “inferred
mineral resources.” In addition, the SEC has amended its
definitions of “proven mineral reserves” and “probable mineral
reserves” to be substantially similar to the corresponding
standards of the CIM. Investors are cautioned that while terms are
substantially similar to CIM standards, there are differences in
the definitions and standards under S-K 1300 and the CIM standards.
Accordingly, there is no assurance any mineral reserves or mineral
resources that the Company may report as “proven reserves,”
“probable reserves,” “measured mineral resources,” “indicated
mineral resources” and “inferred mineral resources” under NI 43-101
will be the same as the reserve or resource estimates prepared
under the standards adopted under S-K 1300. Investors are also
cautioned that while the SEC now recognizes “measured mineral
resources,” “indicated mineral resources” and “inferred mineral
resources,” investors should not assume that any part or all of
mineral deposits in these categories will ever be converted into
reserves. Mineralization described using these terms has a great
amount of uncertainty as to their existence, and great uncertainty
as to their economic and legal feasibility. It cannot be assumed
that all or any part of an “measured mineral resource,” “indicated
mineral resource” or “inferred mineral resource” will ever be
upgraded to a higher category. Under Canadian rules, estimates of
inferred mineral resources may not form the basis of feasibility or
pre-feasibility studies, except in rare cases. Investors are
cautioned not to assume that all or any part of an inferred mineral
resource exists or is economically or legally mineable. Disclosure
of “contained ounces” in a resource is permitted disclosure under
Canadian regulations; however, the SEC normally only permits
issuers to report mineralization that does not constitute
“reserves” by SEC standards as in place tonnage and grade without
reference to unit measures. Accordingly, information concerning
mineral deposits contained in this news release may not be
comparable with information made public by companies that report in
accordance with U.S. standards.
Photos accompanying this
announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/dc65b0a8-0bc4-49bf-8154-7d1c9cfd2955
https://www.globenewswire.com/NewsRoom/AttachmentNg/8746e64c-c44b-40bb-8f6f-08df2e11c2b5
https://www.globenewswire.com/NewsRoom/AttachmentNg/1043536c-bb87-4d99-972e-0f0fd2fbb085
https://www.globenewswire.com/NewsRoom/AttachmentNg/728f5bdb-bf01-4d82-9dd5-6afe5ea0d798
https://www.globenewswire.com/NewsRoom/AttachmentNg/6cfbbff2-af28-4270-a1ce-6fda7fb906b5
https://www.globenewswire.com/NewsRoom/AttachmentNg/7d60acdd-c3f9-44dd-804e-038aabe29740
https://www.globenewswire.com/NewsRoom/AttachmentNg/1846426b-7664-47cf-a6ae-ef8052877e60
https://www.globenewswire.com/NewsRoom/AttachmentNg/8cac7edd-ed1c-4106-83a4-34525a1b11ac
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