Bunker Hill Mining Targets a Rapid Production Restart; Preliminary Economic Assessment Expected IN Q1-2021
BUNKER HILL MINING TARGETS A RAPID PRODUCTION RESTART;
PRELIMINARY ECONOMIC ASSESSMENT EXPECTED IN Q1-2021
TORONTO, CANADA, November 12, 2020 – 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, utilizin g
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, t he 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.
Figure 1: Isometric view of UTZ exploration target area showing completed 2020 drill holes and additional planned holes
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 betwee n 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 b e
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.
Qualified Person
Mr. Scott E. Wilson, CPG, President of Resource Development Associates Inc. and a consultant to the Company, is an
Independent “Qualified Person” as defined by NI 43 -101 and is acting at the Qualified Person for the Company. He has
reviewed and approved the technical information summarized in this news release.
About Bunker Hill Mining Corp.
Bunker Hill Mining Corp. has an option to acquire 100% of all saleable assets at the Bunker Hill Mine. Information about
the Company is available on its website, www.bunkerhillmining.com, or within the SEDAR and EDGAR databases.
For additional information contact:
Sam Ash, President and Chief Executive Officer
+1 208 786 6999
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 a re 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 expectatio ns.
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 stateme nts. 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 prel iminary nature of
metallurgical test results; risks of 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 specialize d 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 Co mplex; 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 thos e risks set out in the
Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing t he 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 C ompany 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 di ffer 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 conce rning “measured
mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mine ralization 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 caut ioned 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.