Bunker Hill reopening remains on track

KELLOGG –– The Bunker Hill Mining Corporation (BHM) announced last week that several projects are underway and are on track to reopen the mine by the end of 2024.

At the local level, the reopening of the mine would be an economic stimulator for a historically economically depressed area – which began its decline with the mine’s closing in the 1980s.

It is expected that with the reopening, more than 250 direct jobs could be available, as well as over 1,000 indirect jobs. The reopening will it will be the first major mine reopening in an EPA Superfund Site.

BHM CEO Sam Ash and Board Executive Chairman Richard Williams hosted a live press conference on Monday morning where they detailed much of the news from the previous week.

Perhaps most importantly, on-site construction has been restarted, including the rehabilitation of the Russell Portal, located on the mine’s property at the top of Wardner.

Originally built in the 1980s, the original portal was constructed as a primary access point to underground Level 4, but was constructed at the 10-foot by 10-foot dimensions that were common for the industry at that time. Maryland-based company, GMS Mine Repair and Maintenance Inc. is handling the rehabilitation work on the portal, which includes expansion to dimensions of 16 feet by 16 feet, which will increase efficiency once the mine is back in operation. This phase of the project is expected to be completed by September of this year.

Once this is completed several other projects will begin, these include the refurbishing of an existing ramp between underground Levels 6 and 8, the stabilization of the ramp as it crosses the Cate Fault at Levels 5 and 6, completing the ventilation system, construction of key underground facilities, getting the mine connected to the power grid, and definition drilling of initial mining areas.

“I am delighted to report that we have now restarted physical construction work on-site, and that our post-financing project review affirms that we remain on track to start production in Q4 2024 in accordance with the existing budget,” Ash said. “This aligns with our strategy of delivering a low capex (capital expenditure) restart to set a solid foundation to unlock significant value creation via subsequent optimization and exploration.”

Plans are in place for the mine to move away from any reliance on diesel power and work has already begun to complete several different upgrades that will deliver lower-cost, hydro-electric/green grid power to the facility.

The mine has also been working closely with Avista Utilities to complete a feeder line between the Bunker Hill and Big Creek substations to allow for a shifting load between the two facilities – future plans include the development of a large transformer that can be dedicated solely to powering the mine.

BHM has also completed its purchase of an additional mill from Barrick’s Golden Sunlight Mine in Montana, this facility, along with the Pend O’Reille mill that they purchased in June of 2022, will ensure that the Bunker Hill site is furnished with the necessary crushing, grinding, flotation, and thickening equipment and instrumentation that it needs for the mine to responsibly resume operations.

During Monday morning’s press conference, Williams addressed the potential global strategic importance of reopening the Bunker Hill Mine – due to a growing need for the zinc that the mine should produce.

“Long-term zinc demand is being driven by investment in infrastructure, transport, and construction to underpin urbanization, economic growth, and green energy transition,” Williams said. “Emerging geopolitical competition threatens to cut global metals supply chain in half.”

Williams discussed how the disruption of this supply chain could lead to the destabilization of high-risk countries and that currently, the largest production of the mineral is coming from countries that aren’t traditional allies of the United States.

Currently, the Red Dog Mine in Alaska is the leading producer of zinc in the United States and Canada at more than 500,000 tonnes per year, however, Williams explained that there is potential for it to be closed by 2031. According to Williams, once Bunker Hill resumes production in 2024, it could produce anywhere from 50,000 to 120,000 tonnes per year.

This wouldn’t be the first time that Silver Valley mining played a large part in the geopolitical world – during World War II, as the nation’s largest lead producer, the bullets used by US Troops came almost exclusively from ore mined in Shoshone County.

For more information on the Bunker Hill Mining Company please visit www.bunkerhillmining.com.