Bunker Hill mine reopening planned later this year

Companies are taking a serious look at dormant base metal producers, including Bunker Hill Mining (U.S.), a subsidiary of VSE-listed Bunker Hill Mining Co.

Wright Engineers of Vancouver is preparing an updated feasibility study for the company’s Bunker Hill mine in the Coeur d’Alene mining district of Idaho where production could resume later this year.

It was the largest and most productive mine in the district when it closed in late 1981. Reserves in all categories currently total 2.4 million tons grading 2.9% lead, 1.6 oz silver and 6.4% zinc. There are several other areas in the mine which are favorable to ore deposition and $1.2 million(US) will be allocated for reserve development and about $500,000 for exploration.

Bunker Hill Mining says smelter contracts have been concluded for production from the mine which would be operated at 800-1,000 tons per day and at 1,500 tons with a larger reserve base. The milling operation, which is nearly 40 years old, has a rated capacity of 2,400 tons from the Bunker Hill mine. Because it’s so old, higher operating and maintenance costs are expected in comparison to a modern plant.

The mill has two circuits, one for Bunker Hill ore and the other for the nearby Crescent mine which has limited reserves and is predominantly a silver mine. Capital costs to reactivate the Bunker Hill mine have been estimated at $3.6 million and this includes working capital of $2.5 million. Operating costs are estimated to be $28 to $35 per ton.