Advancement Of Restart Activities At Bunker Hill Mine

TORONTO - Bunker Hill Mining Corp. reported on the restart project activities taking place at the Bunker Hill Mine. Sam Ash, CEO, said, “It’s exciting to witness the significant acceleration of physical activity at the Mine since we raised our last equity capital, driven by our expanded and Kellogg-based operational team. Whether it’s driving the underground decline to access areas for potential pre-production revenue opportunities, commissioning our pilot water treatment plant, or preparing surface infrastructure for the construction of the Pend Oreille Mill, we are moving forward at a rapid pace and remain on course to restart the Bunker Hill Mine by the end of 2023.”

To prepare the ground for potential toll-milling opportunities, and as part of the planned restart, a decline is being driven from the 5 Level (the highest accessible level of the mine) to the 6 Level, having just passed the 500’ point. In support of these efforts, the mine now has ventilation fans in full operation for the first time in 40 years and its first ever underground haul truck at work. Unit costs remain in the planned range and on track to complete the connection to Level 6 in Q3 2022. The significance of this work is threefold: 1) It provides rubber tire access from the Russell Portal (main mining operational base) through the highest four levels of the mine (the 6 Level already connects to the 8 Level, therefore the breakthrough will connect the 5, 6, 7 & 8 Levels). 2) It unlocks access to mineralized material, opening up potential pre-production revenue opportunities including toll milling and/or ore purchase agreements prior to commissioning of the Pend Oreille mill. 3) It informs the development cost and geotechnical estimates that will underpin the Prefeasibility Study mine plan. To date, actual performance is in line with zero based productivity and cost estimates.

In due course (scheduled in 2023) a further decline will be driven from the 8 Level to the 9 Level to connect the highest five levels of the mine with the historic Kellogg Tunnel that leads directly to the main Bunker Hill yard and processing plant.

A pilot water treatment plant is now operational on site. The system is a 1/20th scale version of the larger system that has been designed to meet the mine’s IPDES water discharge requirements. The system uses a Lamella clarifier to separate clean water from metals and solids after the mine’s effluent mixes with a lime slurry, blown air, recirculated sludge and eventually flocculant.

The Company will conduct a testing program throughout the Spring freshet period. It is treating effluent from the mine, separating it into clean water and sludge discharges to help determine the capabilities of the system. The two streams are later combined and mixed before being discharged where it is later treated by the Central Treatment Plant (the “CTP”) in Kellogg. Regular sampling and testing analysis is ongoing to evaluate the efficacy of the Pilot Plant and allow the team to make various parameter adjustments. Whilst this is a preliminary step in terms of the range of potential future effluent treatment outcomes, it has the potential to unlock options that create capacity at the CTP for other water treatment requirements across the Silver Valley. The Company believes the system operating at full scale may offer operating cost savings. The Company will work closely with environmental regulators to determine the best path forward for all stakeholders. The pilot plant was constructed on time and on budget and can be operated in a fully remote capacity.

Above ground, the clean-up and clear-out of the main Bunker Hill yard continues apace. This work is targeted at preparing the foundations for upcoming engineering and construction work as well as creating space for receipt of the Pend Oreille mill. The final location of all processing facilities will be finalized in the upcoming Prefeasibility Study, with final tradeoff studies nearing completion, but it is anticipated that the majority of processing facilities will be located on surface making extensive use of existing buildings and infrastructure.