Bunker Hill Provides August 2022 Project Restart Update
HIGHLIGHTS
- Demobilization of Pend Oreille Mill completed safely, ahead of schedule and on budget
- Underground decline advances, plan optimized to improve ventilation on break-through to 6 Level
- Purchased haul truck and jumbo drill mobilized to site
- Prefeasibility Study on schedule for results publication in September 2022
- CEO Sam Ash and CFO David Wiens to host interactive 6ix investor event on Friday, September 2 at 11:00am ET / 8:00am PT. Investors are invited to register at: [LINK]
TORONTO, Aug. 31, 2022 -- Bunker Hill Mining Corp. (the "Company") (CSE: BNKR, OTCQB: BHLL) is pleased to provide an update on restart project activities during the month of August 2022.
Sam Ash, CEO stated: "Project activities continued at pace in August, with a highlight being the completion of demobilization of our mill from Pend Oreille to the Bunker Hill site - achieved safely, ahead of schedule, and on budget. While we continue to progress restart activities on the ground, we are also excited for the upcoming release of our Prefeasibility Study results in the coming days, which will inform the remaining work required to reach commercial production at the Bunker Hill Mine."
PLANT DEMOBILIZATION COMPLETED; DEMOLITION ACTIVITIES TO COMMENCE
At Teck's Pend Oreille site, the dismantling and demobilization of the mill has been completed ahead of schedule and on budget, with the ball mills, regrind mill, crushers, flotation cells, lime silo, truck scales, pumps, motors, and other ancillary equipment all dismantled and transported safely approximately ~145 miles to the Bunker Hill site. All of the components are now located in the Bunker Hill yard, having been transported intact to preserve integrity and to simplify recommissioning.
The final phase of work at Pend Oreille will be the demolition of the former mill building, which is expected to commence in September.
Photo 1: Pend Oreille mill building, prior to demobilization
https://www.globenewswire.com/NewsRoom/AttachmentNg/66af462f-f483-4b69-9fd5-bb1209764b9c
Photo 2: Pend Oreille mill building, following demobilization
https://www.globenewswire.com/NewsRoom/AttachmentNg/a6dc09c4-2ab3-4c2f-885a-e3c02d0fd7c3
Photo 3: Bunker Hill site with Pend Oreille equipment demobilized
https://www.globenewswire.com/NewsRoom/AttachmentNg/1df22336-34ef-49d4-906e-0fd91fc8d426
UNDERGROUND ACTIVITY & MOBILE EQUIPMENT
As part of the restart plan, a decline continues to be driven from '5 Level' (the highest accessible level of the mine) to '6 Level', with advancement to approximately 1,100' by the end of August. The planned 'break through' location to the 6 Level has been adjusted to optimize the overall ventilation plan when the levels are connected. Ground support and shotcrete are being utilized to safeguard progress made thus far, and a second fan has also been installed that will maintain strong ventilation until the breakthrough occurs.
The mine plan envisages rehabilitation of pre-existing decline infrastructure that already connects to 8 Level, a substantial time and capital savings, as the next stage of development. Upon completion, this will provide access to mineralization and support mine restart activities.
The previously announced 16-ton underground haul truck and jumbo drill arrived at the Bunker Hill site, both of which are in the process of being serviced and prepared for deployment underground. An additional haul truck, already purchased, will be arriving on site in mid-September. The gradual expansion of the fleet is tailored to ensure adequate equipment availability as mining progresses.
Photo 4: 16-ton haul truck
https://www.globenewswire.com/NewsRoom/AttachmentNg/de6220bb-69f1-4879-bda8-bdc29fccfdb6
Photo 5: Jumbo drill
https://www.globenewswire.com/NewsRoom/AttachmentNg/11098fba-d4f6-4904-b90d-1a0b0fa72abf
Figure 1: Underground decline progress
https://www.globenewswire.com/NewsRoom/AttachmentNg/f5d6bf60-0392-4220-8bfe-6f4e5121f03e
PREFEASIBILITY STUDY AND NEXT STEPS
Detailed engineering, trade-off studies, mine planning, and capital and operating cost estimates for the Prefeasibility Study (the "PFS") are complete, with results expected to be released in the coming days. The PFS will define all remaining requirements to achieve an operational restart of the Bunker Hill Mine on the basis of published Measured and Indicated Mineral Resources.
Concurrent with a positive construction decision, which is expected shortly after the release of the PFS results, the Company intends to make its final selection of an EPCM contractor. Over the past couple of months, multiple EPCM candidates have been evaluated and vetted in detail.
Figure 2: Bunker Hill Planned Development Timeline
https://www.globenewswire.com/NewsRoom/AttachmentNg/31c9d71e-6fa5-420e-88c9-1fe2091b963d
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 the 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:
David Wiens, CFA
CFO & Corporate Secretary
+1 208 370 3665
ir@bunkerhillmining.com
Cautionary Statements
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. 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". 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 information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information.
Forward looking information in this news release includes, but is not limited to, the Company's intentions regarding its objectives, goals or future plans and statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: 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. Although the Company believes that the assumptions and factors used in preparing the forward-looking information 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 information, 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 Resources
This press 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 press release have been disclosed in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum 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. Canadian disclosure standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission ("SEC"), and resource and reserve information contained in this press release may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term "resource" does not equate to the term "reserves". Under U.S. standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC's disclosure standards normally do not permit the inclusion of information concerning "measured mineral resources", "indicated mineral resources" or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that do not constitute "reserves" by U.S. standards in documents filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. U.S. investors should also understand that "inferred mineral resources" have 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 "inferred mineral resource" will ever be upgraded to a higher category. 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. The requirements of NI 43-101 for disclosure of "reserves" are also not the same as those of the SEC, and reserves disclosed by the Company in accordance with NI 43-101 may not qualify as "reserves" under SEC standards. Accordingly, information concerning mineral deposits contained in our website may not be comparable with information made public by companies that report in accordance with U.S. standards.