Resource World Magazine

A U G U S T / S E P T E M B E R 2 0 1 7 www.resourceworld.com 43 MINING LIBERTY SILVER CORP. [LSL-CSE] recently formalized its acquisi- tion of the past-producing Bunker Hill Mine near Kellogg, northern Idaho, the largest zinc-lead-silver deposit in the Americas not in production. The mine was in operation between 1885 and 1981 and produced over 35.8 million tons of ore averaging 8.76% lead, 4.52 oz/ton silver and 3.67% zinc. During operations, over 40 distinct zones were discovered and 24 of these zones have been mined. The acquisition price is US $30,000,000. The initial US $15,000,000 will be paid annually over five years from the clos- ing date, of which US $350,000 has been paid; US $3,350,000 will become due by the closing date. The balance of US $15,000,000 will become due in 10 equal installments beginning upon the anniversary of the closing date in 2023 and on each anniversary of the closing date thereafter. The mine did not run out of ore when it closed. The mine and smelter complex suspended operations when previous owner, Gulf Resources, was unable to comply with new environmental regulations enforced by the Environmental Protection Agency (EPA). Consequently, the lead smelter, electrolytic zinc plant and milling facilities were closed and demolished. This was followed by the now completed EPA's Superfund remediation of the entire Silver Valley district. During 1991, the Quill Zone Reserve was calculated as an SEC class of proven and probable reserve which totaled approximately 4.8 million tons grading 6.28% zinc, 2.27% lead and 1.16 oz/ton silver. The total for all the zinc zones including the Quill Zone, proven and probable reserves were calculated at 10.9 million tonnes grading 5.85% zinc, 1.23% lead and 0.58 oz/ton silver. Additionally the lead zones in the mine contain about 1 million tons of 7.79% lead, 1.32% zinc and 4.31 oz/ton silver. The com- pany will bring part of the Quill Zone up to a NI 43-101 standard with modest sampling and drilling in the near future. The 4.8 million tons in the Quill Zone is located between the 4th and 17th levels. Most of this is readily accessible for near-term mining at an initial 1,500 tons per day. The Quill Zone is known from historical drilling to continue to depths below the 2200 level and above the 2 level – a vertical extent of over 4,000 feet. The Bunker Hill property package is patented (private) ground with no impediments to development. There is also excellent infrastructure at the mine site, including hoists, power, water, and, as it is in a historic mining region, an experienced under- ground workforce. Plans call for upgrading the CSE listing to the TSX later this year. This year, the company will also undertake underground sampling, drilling to confirm resources, sampling loose ore in the mine, and upgrading reserves to NI 43-101 standards, as well as ongoing engineering studies and the digitizing of the extensive existing data. While still in the early planning stages, Liberty Silver expects the CapEx to get Bunker Hill back into production to be around US $25 million with an expected production target date of within 12 to 18 months. Ore will be trucked to nearby existing process- ing facilities for custom milling and production of concentrates. The company will also consider building its own mill in the future if warranted. Liberty Silver also holds the Trinity silver project in Nevada which is currently on hold. The company is headed by Bruce Reid, President and CEO, who holds degrees in both geology and finance. Reid is the former Executive Chairman of Carlisle Goldfields, a Canadian-based gold exploration and development company, recently purchased by Alamos Gold; he was also President and CEO of U.S. Silver Corp. Liberty Silver has about 24.3 million shares outstanding with management and insiders owning over 70%. n Liberty Silver acquiring Bunker Hill Mine in Idaho by Ellsworth Dickson The hoisting machinery is in good shape at Liberty Silver's Bunker Hill Mine in northern Idaho. Photo courtesy Liberty Silver Corp.

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