Bunker Hill Mining Corp. launches Preliminary Economic Assessment

TORONTO, CANADA – Bunker Hill Mining Corporation (the “Company”) (CSE: BNKR) is pleased to report that it has launched a Preliminary Economic Assessment (“PEA”), due in Q1-2021, to assess the potential to quickly restart production for minimal capital expenditure at its Bunker Hill Mine located in Idaho’s Silver Valley, USA.

Sam Ash, CEO of Bunker Hill Mining, stated: “We believe that there is strong potential to quickly restart production, which stopped in the early 1980s, for minimal capital by focusing on the de-watered upper areas of the mine, utilizing existing infrastructure, and based on truck haulage and toll milling methods. The rapid restart would allow us to self-fund our ongoing high grade silver exploration, immediately crystalize the value created through exploration, and demonstrate our ability to successfully operate the mine based on modern techniques.”

The PEA will be based on the resource published on September 28, 2020. Consulting Engineers from MineTech International LLC have been engaged to deliver the PEA, which will be conducted in accordance with National Instrument 43-101 (“NI 43-01”). The focus will be upon the study of mining operations conducted above the current water level (Level 11). This will include a systematic study of existing infrastructure, capital cost estimates, operating cost estimates, metallurgy, resource modeling, mine design and scheduling, ventilation, haulage, and marketing. The key areas of trade-off study will include: 1) Truck haulage from Russell Tunnel vs rail haulage from Kellogg Tunnel; 2) Toll-milling vs construction of various in-house processing options; 3) Sensitivity to production rate from 400-1000 TPD; Contract vs. Owner-Operator Mining; and Grade vs Tonnage trade-offs.

In addition, the Company continues to make good progress on its ongoing high grade silver focused exploration campaign which commenced September. Particular focus will be made to follow up recently released drill results in the near surface UTZ target area with the intent of adding to the recently reported resource.

James Stonehouse, VP of Exploration, stated: “In my short time on site I have seen the outstanding mineral potential that exists at Bunker Hill. As our geologic understanding continues to grow through modeling and drilling, I am confident in our ability to add to our already sizable resource through continued exploration success in both the upper and lower levels of the mine.”

A total of 5000’ of core were already drilled from surface with two drill rigs currently in operation. The first rig is focused on developing further the high-grade silver targets identified in the UTZ Ore zone between the 5 and 6 Levels as described in the press release of 27 October 2020. The second is exploring the historic high-grade silver targets in close proximity to the 9 Level. Assay results are expected from mid-December. All of these silver targets are close to existing infrastructure and have the potential to add high-grade resources to the upper level inventory and add greatly to the value of any restart plan. In support of the PEA, the Company will conduct approximately 4000’ of infill drilling designed to upgrade the highest-grade inferred resources of contained within the UTZ, Newgard and Quill ore bodies, above the 9 Level, into the Indicated Resources category.

The Company advises that it does not propose to base its production decision on a feasibility study of mineral reserves, demonstrating economic and technical viability, 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. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved. The Company further cautions that a PEA is preliminary in nature. No mining study has been completed. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that the PEA will be realized.