Bunker Hill Mining Corp. (BNKR: CSE; BHLL: OTCMKTS) published the findings of a preliminary economic assessment (PEA) of the restart of 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 quickly restarted as a low-cost, long-lasting, sustainable operation,” said the CEO Sam Ash in the statement.

The report describes 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 9.3%.

The company called the project a strong economic one, with the mine generating an average of $ 20 million per year in free cash flow and EBITDA of $ 30 million over 10 years, a return on investment in 2.5 years, a value net present value of $ 101 million and an internal rate of return of 46%.

To restart the mine, the initial capex is estimated at $ 42 million, to be paid over the first 15 months. All-inclusive sustaining costs are expected to be $ 0.65 per pound of zinc payable, net of by-products.

“The strong financial returns of the PEA, including a NPV of $ 101 million, an IRR of 46% and a return on investment of 2.5 years, do not include the significant future benefits of the exploration underway. high grade silver which we believe will further increase cash flow. margins, ”Ash said. “Based on an annual average free cash flow of $ 20 million at below spot metal prices, we can self-fund these exploration efforts while continuing to grow the company.”

“We look forward to advancing technical studies and project finance discussions over the coming months,” Ash added.

The company also said that a restart of Bunker Hill will provide the local community in Shoshone County with 150-200 new mining and administrative jobs and other benefits.

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