Issue link: http://resourceworld.uberflip.com/i/937377
F E B R U A R Y / M A R C H 2 0 1 8 www.resourceworld.com 77 company can execute its option to pur- chase at any time. Included in the purchase price is an agreement to pay US $20 million over nine years to compensate the US Environmental Protection Agency (EPA) for the past and future operation of a water treatment facil- ity at the Bunker Hill Mine. In return, the EPA will give the company a water use permit, which is the only permit needed to re-start the mine. The agreement also indemnifies Bunker Hill Mining for all the historical environmental liability on the Bunker Hill Mining Complex. Now with the initial financing and the agreement with the EPA complete, Bunker Hill management are looking at their options to have the mine in production within 12-14 months. One possibility is to have a toll milling and contract mining agreement. The area is peppered with mills which are not running at full capacity and an agreement will lower the initial produc- tion costs while the company ramps up to a 3,500 ton per day operation from a pro- posed initial 1,500 tons per day. "I am pleased with our progress in undertaking Bunker Hill Mine develop- ment activities. The size and scope of this endeavour necessitates a slow and system- atic process," said Bruce Reid, President and CEO of Bunker Hill Mining. Reid is well known in the Coeur D'Alene mining district for putting shut- tered mines back into production. He was the founder, President and CEO of US Silver Corp. which put the Galena Mine, historically the second most prolific silver mine in US and located in the heart of the Coeur D'Alene mining district, back into production. Now Reid is taking his experience and applying it to the Bunker Hill Mine, which was the largest producing mine in the Coeur D'Alene mining district of northern Idaho. Historically, the mine produced over 35 million tons of ore grading on average 8.76% lead, 3.67% zinc, and 155 g/t silver. The Coeur D'Alene mining district, also known as Silver Valley, has produced a billion ounces of silver, 3 million ounces of zinc and 8 million tons of lead, totaling US $6 billion in value, ranking the valley among the top 10 richest mining districts in the world. The area is also rich with mining advo- cates. Kellogg's mayor, Mac Pooler, is excited about the possibility of more min- ing returning to his town. "They're good paying jobs with good benefits and it's the kind of industry we need. We're never going to get a Boeing, we're never going to get the big stores, but we need the type of jobs that pay well and have good benefits that can take care of families," he said. And with a history of mining in the area, Kellogg and the surrounding communi- ties boast a willing and skilled workforce with generations of experience along with the infrastructure including power, water, housing and roads, all which contribute to potential cost savings as the Bunker Hill Mine ramps up to production and kick starts the renaissance of mining in the region. n