Letter from the CEO: Bunker Hill Gears Up for Significant Development
Letter from the CEO: Bunker Hill Gears Up for Significant Development
TORONTO, June 21, 2018 -- Bunker Hill Mining Corp. (CSE:BNKR) (“Bunker Hill” or the “Company”) is pleased to issue a
letter to investors from President and CEO, Bruce Reid, to update investors on recent developments and future plans.
Dear Investor,
I would like to take this opportunity to provide you with an update on recent developments at the Bunker Hill Mine, and on our
exciting plans going forward.
Fully Permitted: Patented Ground and signed EPA Agreement
The Company is now fully permitted to proceed with mining operations at the Bunker Hill mine. The entirety of the Bunker Hill
Mine land package lies on patented ground, which allows for underground mining activity, provided emissions permitting is
obtained. The agreement reached with the EPA (see press release dated March 7, 2018) essentially provides the Company
with the only emissions permit required - a water discharge permit which allows for the EPA to continue managing the
processing of the mine effluent from the Bunker Hill Mine, for at least 5 years, with an opportunity to continue this arrangement
thereafter. This agreement was met with significant support from municipal and county level governments.
Technical Report: TSX listing, Continuity and Grade demonstration
The Company has initiated a NI 43-101 technical report on the Bunker Hill property, and this report is expected to be released
in Q3 2018. Bunker Hill hopes to use this report to apply for a listing on the TSX. As part of the exercise, data from
approximately 1,000 historic diamond drill holes will be input into a wire frame software package, which will generate suitably
constrained solids that may demonstrate 3D continuity and economically interesting grades. This information may be
included in the report. These holes are part of over 3,400 holes historically drilled on the property, for which the Company has
the drill logs. Many high grade intercepts from these holes have never been followed up on, and these represent significant
exploration targets for future exploration programs.
Development Plans – Internal Mine Plan
Bunker Hill has spent considerable time and resources outlining an internal mine plan. As part of this exercise, an estimate of
mineable material, including tons and grade, which is based on non NI 43-101 compliant historical reserves and resources,
provided a basis around which a conceptual mine was designed. Subsequently, an external consultant (SRK Consulting
(Canada) Inc.’s underground mine team based in Sudbury, Ontario) was used to review the Company’s analysis. The resultant
mine plan indicates good economic returns at current commodity prices. Bunker Hill has built a very experienced mine
operations team at the mine site, with most individuals possessing decades of local experience. This team includes a mining
engineer, chief mine geologist, mine superintendent, logistics manager, and mine maintenance manager. The design
parameters and costs utilized in the mine plan therefore reflect very specific locally relevant knowledge of mining operations
brought by the Bunker Hill mine design team, in addition to SRK’s broad industry perspective and underground mining
experience. The main capital cost components of the mine plan include rehabilitation/repair of underground access (Kellogg
and Russell tunnels, number 1 and 2 hoists), additional underground development (inter-level ramps, etc.), civil
engineering/construction (surface buildings, roads), and process plant and tailings facility construction. The total cost of these
items, pre-production, are estimated at approximately US$75M.
Processing Plant: Proven Metallurgy
90 years of processing history has provided an extensive metallurgical database, which shows that excellent recoveries and
good concentrates can be produced from a simple flowsheet. Recoveries averaged 93% for zinc, and 92% for lead.
Concentrates were of high grade (56% zinc, 64% lead) and were clean with no deleterious elements. These results were
obtained with over 50-year-old technology, as the plant was last upgraded in the 1940’s (producing up to the 1980’s). The
Company will tender for an engineering study (bulk sample, metallurgical testing, flowsheet design, feasibility study,
engineering design, EPC contract) to be completed for an on-site 1,500 tpd modular processing facility, which would allow for
a potential future doubling of throughput rate. This tender process is expected to conclude during H2 2018.
Financing Activities: Ongoing discussions
The Company has been very active in searching out and engaging potential financing partners for funding the re-start of the
Bunker Hill mine. These include both financial groups, and mining companies. Bunker Hill is currently in discussions with
sophisticated potential investors with deep knowledge of mining risk and an understanding of the significant value that the
Bunker Hill mine represents. The key value drivers include:
1. fully permitted
2. extensively developed
3. good metallurgy proven by 90 years of past production
4. exploration potential of an underexplored intensely mineralized system
5. infrastructure rich, low cost (power rates of $0.045-0.05/kWh), first world setting.
The Bunker Hill management team has worked tirelessly over the last year to advance and de-risk the Bunker Hill mine on
many different levels. In 2018 we completed an agreement with the EPA, completed an internal mine plan, initiated a NI 43-
101 property report as a pre-condition to TSX listing, started planning for a process plant technical study, and worked
endlessly on arranging financing for the pre-production costs of a Bunker Hill mine re-start. We are pleased to have this
opportunity to update you on all these activities to-date and look forward to providing you with further news as we continue to
advance the project. Thank you for your patience and support.
We invite you to contact us anytime with questions and thank you for your support. Our key initiatives will provide ample
catalysts in the market and we plan to move forward quickly.
Regards,
Bruce Reid
President and CEO, Bunker Hill Mining Corp.
About Bunker Hill Mining Corp.
Bunker Hill Mining Corp. has an option to acquire 100% of the Bunker Hill Mine. The Bunker Hill Mine was the largest
producing mine in the Coeur D'Alene zinc, lead and silver mining district in northern Idaho. Historically, the mine produced
over 35M tons of ore grading on average 8.76% lead, 3.67% zinc, and 155 g/t silver (Bunker Hill Mines Annual Report 1980).
Qualified Person
The technical information in this press release has been reviewed and approved by Peter Karelse P.Geo., a consultant to the
Company, who is a Qualified Person as defined by NI 43-101. Mr. Karelse has more than 30 years of experience in exploration
and development.
Information about the Company is available on its website, www.bunkerhillmining.com, or in the SEDAR and EDGAR
databases.
For additional information contact:
Bruce Reid
Chief Executive Officer
Nicholas Konkin
Marketing and Communications
(647) 500-4495 (416) 567-9087
[email protected] [email protected]
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. The forward looking statements made herein are based on information currently available to the Company and the
Company provides no assurance that actual results will meet management's expectations or assumptions with respect to,
among other things, the ability of the Company to successfully complete the acquisition of the Bunker Hill Mine Complex
on the terms as announced or other satisfactory terms or at all, and fund the initial payments for which the Company does not
have funds at this time, the Company’s present and future financial condition, the Company’s ability to secure financing, and
the state of financial markets. 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”, and may include statements regarding, among other things, the terms of
the Bunker Hill Mine Complex acquisition and funding of the acquisition. Since forward-looking statements are based on
assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties.
Actual results relating to, among other things, results of exploration, project development, and the Company’s financial
condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as:
the inability of the Company to successfully acquire the Bunker Hill Mine Complex on the terms as announced or other
satisfactory terms or at all, and fund the payments for which the Company does not have funds at this time; the inability of the
Company to budget and manage its liquidity in light of the failure to obtain additional financing; the inability of the Company to
develop or sustain an active public market for its securities; development of changes in general economic conditions and
conditions in the financial markets; changes in demand and prices for precious metals; litigation, legislative, environmental
and other judicial, regulatory, political and competitive developments; operational difficulties encountered in connection with
the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that
may affect any of the Company’s forward-looking statements. These and other factors made in public disclosures and filings
by the Company should be considered carefully and readers should not place undue reliance on the Company’s forward-
looking statements. The Company does not undertake to update any forward-looking statement that may be made from time
to time by the Company or on its behalf, except in accordance with applicable securities laws.