Sierra Metals To Invest US$28 Million For An Iron Ore Processing Plant Expected To Produce Approximately 500,000 Tonnes Per Year Of Magnetite Concentrate At The Bolivar Mine, Mexico

 

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) today announces that its Board of Directors has approved the investment by the Company of US$28 million for the construction of a magnetite processing plant including an initial expenditure of $5.2 million for early procurement and contracting on the project. The plant is expected to produce approximately 500,000 tonnes per year of 62% iron ore fines concentrate at the Company’s Bolivar Mine located in the Chihuahua State, Mexico.

Engineering and test work of the final process is currently underway, and construction of the processing plant is expected to commence this June and will take approximately six months to complete. The Company expects to concentrate magnetite as an additional process to the existing copper concentrator plant through a series of magnetic drums and regrinding equipment, at an added marginal cost for the process.

The magnetite project was previously mentioned in the Bolivar Mine’s Preliminary Economic Assessment (the “Report”) which was filed on SEDAR (sedar.com) and EDGAR (SEC.gov) on November 5, 2020. In the Report the Company mentioned that the economic analysis did not include the potential sale of magnetite but that the Company was studying this potential development and believed that doing so could result in the following outcomes:

1. Increased sales revenue

2. Reduced future closure costs; and

3. Reduced tailings for deposition, and its related costs.

The project has now been approved and will be included in an updated PEA for the Bolivar Mine which will be filed within 45 days.

Luis Marchese, CEO of Sierra Metals commented: “We are very excited about initiating this new process the potential for additional revenue for the Company. The iron ore market is presenting value enhancing opportunities for Sierra Metals and the Company is taking decisive action to extract value from its existing iron ore-copper mineral resources. As well, this process is expected to have additional benefits including reduced haulage costs of our copper concentrate by rail and enhance the Bolivar mine’s economics due to this new revenue stream. Overall, we believe that this is a great value-enhancing initiative for the Company and its shareholders.”

Quality Control

Américo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning, is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Augusto Chung, FAusIMM CP (Metallurgist) and Vice President of Metallurgy and Projects, is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The Company’s Common Shares trade on the Bolsa de Valores de Lima and on the Toronto Stock Exchange under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

For further information regarding Sierra Metals, please visit www.sierrametals.com

Continue to Follow, Like and Watch our progress:

Web: www.sierrametals.com | Twitter: sierrametals | Facebook: SierraMetalsInc | LinkedIn: Sierra Metals Inc | Instagram: sierrametals

Disclaimer Regarding Risks and Forward-Looking Statements

The decision to construct the processing plant has not been made based on a feasibility study and accordingly, involves increased uncertainty and risks.

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the timing of construction of the processing plant, its capacity and production, construction costs and expected iron content of the concentrate. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in the Company’s annual information form dated March 30, 2021 for its fiscal year ended December 31, 2020 and other risks identified in the Company’s filings with Canadian securities regulators and the United States Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company’s forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations, and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

Mike McAllister
Vice President, Investor Relations
Sierra Metals Inc.
(416) 366 7777
Email: info@sierrametals.com

Luis Marchese
CEO
Sierra Metals Inc.
(416) 366 7777

Source: Sierra Metals Inc.

Sierra Metals To Invest US$28 Million For An Iron Ore Processing Plant Expected To Produce Approximately 500,000 Tonnes Per Year Of Magnetite Concentrate At The Bolivar Mine, Mexico

 

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) today announces that its Board of Directors has approved the investment by the Company of US$28 million for the construction of a magnetite processing plant including an initial expenditure of $5.2 million for early procurement and contracting on the project. The plant is expected to produce approximately 500,000 tonnes per year of 62% iron ore fines concentrate at the Company’s Bolivar Mine located in the Chihuahua State, Mexico.

Engineering and test work of the final process is currently underway, and construction of the processing plant is expected to commence this June and will take approximately six months to complete. The Company expects to concentrate magnetite as an additional process to the existing copper concentrator plant through a series of magnetic drums and regrinding equipment, at an added marginal cost for the process.

The magnetite project was previously mentioned in the Bolivar Mine’s Preliminary Economic Assessment (the “Report”) which was filed on SEDAR (sedar.com) and EDGAR (SEC.gov) on November 5, 2020. In the Report the Company mentioned that the economic analysis did not include the potential sale of magnetite but that the Company was studying this potential development and believed that doing so could result in the following outcomes:

1. Increased sales revenue

2. Reduced future closure costs; and

3. Reduced tailings for deposition, and its related costs.

The project has now been approved and will be included in an updated PEA for the Bolivar Mine which will be filed within 45 days.

Luis Marchese, CEO of Sierra Metals commented: “We are very excited about initiating this new process the potential for additional revenue for the Company. The iron ore market is presenting value enhancing opportunities for Sierra Metals and the Company is taking decisive action to extract value from its existing iron ore-copper mineral resources. As well, this process is expected to have additional benefits including reduced haulage costs of our copper concentrate by rail and enhance the Bolivar mine’s economics due to this new revenue stream. Overall, we believe that this is a great value-enhancing initiative for the Company and its shareholders.”

Quality Control

Américo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning, is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Augusto Chung, FAusIMM CP (Metallurgist) and Vice President of Metallurgy and Projects, is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The Company’s Common Shares trade on the Bolsa de Valores de Lima and on the Toronto Stock Exchange under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

For further information regarding Sierra Metals, please visit www.sierrametals.com

Continue to Follow, Like and Watch our progress:

Web: www.sierrametals.com | Twitter: sierrametals | Facebook: SierraMetalsInc | LinkedIn: Sierra Metals Inc | Instagram: sierrametals

Disclaimer Regarding Risks and Forward-Looking Statements

The decision to construct the processing plant has not been made based on a feasibility study and accordingly, involves increased uncertainty and risks.

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the timing of construction of the processing plant, its capacity and production, construction costs and expected iron content of the concentrate. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in the Company’s annual information form dated March 30, 2021 for its fiscal year ended December 31, 2020 and other risks identified in the Company’s filings with Canadian securities regulators and the United States Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company’s forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations, and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

Mike McAllister
Vice President, Investor Relations
Sierra Metals Inc.
(416) 366 7777
Email: info@sierrametals.com

Luis Marchese
CEO
Sierra Metals Inc.
(416) 366 7777

Source: Sierra Metals Inc.

Bunker Hill Announces Robust Restart PEA: $101m Npv, 46% Irr, 2.5 Year Payback, $42m Initial Capex, $20m Average Annual Fcf Over 10 Years

 

TORONTO, April 20, 2021 (GLOBE NEWSWIRE) — Bunker Hill Mining Corp. (CSE: BNKR) (“Bunker Hill” or the “Company) is pleased to report the results of its Preliminary Economic Assessment (“PEA”) for the Bunker Hill Mine in Idaho’s Silver Valley, USA.

The PEA contemplates a $42 million initial capital cost (including 20% contingency) to rapidly restart the mine, generating approximately $20 million of annual average free cash flow over a 10-year mine life, and producing over 550 million pounds of zinc, 290 million pounds of lead, and 7 million ounces of silver at all-in sustaining costs (“AISC”) of $0.65 per payable pound of zinc (net of by-products).

Sam Ash, CEO of Bunker Hill, stated: “Our PEA confirms that by maximizing the use of existing resources, partnerships and infrastructure, the Bunker Hill Mine has the potential to be re-started rapidly as a low-cost, long life, sustainable operation. Pleasingly for our investors, the robust financial returns in the PEA, including a $101 million NPV, 46% IRR, and 2.5 year payback, do not include the significant upside to come from the on-going high-grade silver exploration which we expect to further increase cash flow margins. Based an annual average free cash flow of $20 million at metal prices below spot levels, we can self-fund these exploration efforts while continuing to grow the company. We look forward to progressing further technical studies and project finance discussions over the coming months.”

The early and robust cash-flow generated by this restart plan is designed to deliver optimal returns to all stakeholders, creating 150-200 new mining and administrative jobs within the local community, ensuring long-term environmental-management partnerships with the U.S. EPA and IDEQ, and driving the long-term development of the mine’s resources for many years to come.

The PEA was prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). MineTech USA, LLC (“MineTech”) developed the mine infrastructure, capital expenditures and operating expenditures related portions of the PEA as well as portions of the mine plan and operating schedules in coordination with Resource Development Associates Inc. (“RDA”) and Pro Solv Consulting, LLC. The Company plans to file the completed PEA technical report on SEDAR within 45 days of this press release and make it available on the Company’s website. All “t” references in this press release are to short tons and “$” references are in U.S. dollars.

Table 1 summarizes the key findings of the PEA.

Table 1: PEA Summary

 

The PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the project described in the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Sustainability Impacts

The mine’s development and operations will generate between 150-200 new jobs in Shoshone County that will pay twice the county’s median household income, on average. This has the potential to reduce unemployment in the county by more than ten percent. Procurement by the mine is projected to inject an additional $15 million into the local economy annually.

The mine will achieve carbon neutrality in year one of operations while depositing all waste and tailings underground to maintain a minimal environmental footprint. The production of low porosity paste from tailings will be an integral part of long-term water management. By sealing sulfide and pyrite-rich mineralization with paste, production of acid rock drainage will be reduced substantially and permanently. This will reduce the challenge and cost of water management from year one onward.

Mineral Resource Inventory

The Bunker Hill Mine is located in the historic Coeur d’Alene Mining District in Kellogg, Idaho at the base of Silver Mountain. It was operated from 1885 until 1981 when it was closed due to low metal prices, an extended labor strike, and capital short-falls required to meet new environmental standards. Although attempts were made to modernize and operate the mine until 1991, the mill and smelter facilities were removed and reclaimed along with the tailings impoundment. The underground workings, surface portal and shaft access points remain intact along with the mine office and maintenance complex. Given the historic reserves and existing infrastructure, Bunker Hill management has assessed the mine’s rapid restart potential, which is the subject of today’s published PEA.

The PEA is based on the Bunker Hill Mineral Resource, which was published on March 22, 2021, following the drilling program conducted in 2020 and early 2021 to validate the historical reserves. The PEA includes a mining inventory of 5.5Mt, which represents a portion of the 4.4Mt Indicated mineral resource and 5.6Mt Inferred mineral resource. Given the 10-year mine life, the mine plan has been based on prioritizing higher grade material. The mine production schedule is based on a 5.0% zinc operating cut-off grade and the 3.3% zinc cut-off grade which includes Indicated and Inferred mineral resources.

Table 2: Mineral Resources

Notes: Mineral resources are reported at a zinc cutoff grade of 3.3%. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves. Mineral resources are reported in situ and undiluted. Mineral resources meet the reasonable prospects of eventual economic extraction due to the fact that the entire vertical extents of the mineralization have been developed on mining levels every two-hundred feet. Newgard and Quill were being actively exploited and developed prior to the shutdown of mining operations in 1991. High grade capping was applied to the assays prior to grade estimation. Grades are estimated using Inverse Distance Cubed (ID3) interpolation techniques. Grades were estimated into a regularized 5 ft x 5 ft x 5 ft block model. A bulk density of 11.3 cubic feet per ton was applied to the entire mineral resource based upon historic density values from production records at the Bunker Hill Mine. Two-hundred sixty-one (261) drillholes, totaling 29,380-feet, containing 5,720 Pb, Zn and Ag assays were used in the determination of mineralization. Drill hole data was collected on 5-foot composite intervals which resulted in 4,483 composite assays. Additionally, 4,545 actual production car samples and 394 recent channel sample verification samples were used for the resource estimate. Historic mining voids, stopes and development drifting have been accounted for in the mineral resource estimate. For additional information regarding the mineral resources estimate, please refer to the Company’s news release dated March 22, 2021.

 

 

Infrastructure Overview and Initial Capital Costs

The vast underground workings, surface portals, mine office, maintenance complex, and 9-level shaft access points for the Bunker Hill Mine remain intact. The Kellogg Tunnel (“KT”) portal adjacent to the surface infrastructure connects horizontally by rail to the underground hoisting facilities on 9-level, approximately 9,500 feet to the south. Water seepage above the 9-level drains naturally out of the KT, and laterals below the 9-level must be dewatered prior to production commencement. All water is collected at the portal and sent for treatment. The underground workings are extensive, and only the infrastructure germane to the opening of the mine is being described in the PEA. Several shafts and raises connect to the 9-level and its underground infrastructure is central to the mine and home to the #1 and #2 hoistrooms, material bins, substations and shops. Shafts at the mine are inclined rail; the #1 being the production shaft and #2 materials and personnel.

The mine is currently accessed by the KT and 5-level portals located just above the Town of Wardner.

The utilization of this pre-existing infrastructure allows for a restart of the mine with an initial capital investment of approximately $42 million, net of pre-commercial production revenue, as detailed in the Table below.   Each of the initial capital items listed (excluding pre-production revenue) include a 20% contingency.

Table 3: Initial Capital

Mill capacity and power consumption are based on 1,500 tons per day at 90% availability, a Bond Work Index of 14.5 kW-hrs/t and a 150-mesh grind, which is supported by the preliminary metallurgical work. Capital costs include equipment and installation labor. Metallurgical work is ongoing at Resource Development, Inc. (“RDI”) and the Company is evaluating multiple sourcing alternatives for processing and equipment.

Other life of mine capital improvements include the following, as set forth in the PEA:

• Connect the 5-level and 9-level with an access ramp
• Remove and replace Shaft#1 hoist and hoist works
• Recondition Shaft #2 hoist and hoist works
• Recondition Shafts #1 and #2; replace the existing rail with a modular track system and associated conveyances
• Install new mine wide power distribution
• Install fiber optic and Sentinel communications from the surface to the main underground facilities
• Install a backfill paste plant on the 5-level; allows efficient access to cement, fly ash and reagents
• Install a primarily gravity backfill distribution system to active and historical mining areas
• Recondition the KT and remove existing rail to convert to rubber tire access
• Introduce rubber tire development to the stopes as required
• Vertical development for muck passes, escapeways and ventilation
• Excavations for milling, flotation and backfilling equipment
• Fan and air control installations
• Tailings water treatment plant

Mining

The Newgard/Quill resource was designed and scheduled utilizing a traditional overhead cut and fill mining method. The cut and fill stopes are accessed via an incline ramp developed between levels. The ramp provides ventilation, utilities, and secondary escapeway, as well as connecting the entire mine with rubber tire access. Long-hole open stoping (“LHOS”) is also employed similar to the previous mining extraction methods. The LHOS areas are accessed through existing excavations rehabilitated to modern mining standards. Backfill requirements are provided via an underground paste plant and distribution system.

Production commences six months following the start of construction, targeting 200 tons/day (“tpd”) ramping up to 1,500 tpd over a 14-month period. The slow ramp up allows for infrastructure components to be completed and commissioned and to ensure the mine is adequately developed to maintain consistent production. Initially, production will be targeted above the 9-level as the hoists and first 200-foot section of shaft rehabilitation are completed. The mine plan is developed to allow sequential water draw down and shaft rehabilitation between levels as new production horizons are required. This sequencing is continued to the 26-level.

As the mine matures and progresses deeper, the resource transitions from primarily zinc to primarily lead mineralization in Year 9. In Year 8, the mine plan also transitions away from cut and fill production to LHOS for the remainder of the mine life.

Exploration potential is significant throughout the mine. Due to the substantial existing workings, Bunker Hill has the opportunity to delineate specific mineralized zones (zinc or lead) that maximizes cash flow potential depending on commodity pricing.

The mining schedule is presented in the Table below.

Table 4: Mine Schedule

 

Processing
 

The PEA envisages a crushing and milling plant to be centrally located on the 9-level. Milled material will then be pumped in slurry to the flotation and paste plant on the 5-level. The flotation plant will generate concentrates which will be transported to surface for shipment. The paste plant will generate paste for geotechnical fill and tailings disposal in open drifts and stopes in the mine. This approach optimizes material transport costs while eliminating the need for surface tailings disposal.

The local utility substation is located next to the mine main offices and supplies power to the mine and other local consumers. The existing power feeds to the mine are scheduled to be replaced prior to full production and the substation will require upgrades by Year 3 to allow for the additional dewatering loads as the mine advances to depth.

A traditional mill grinding circuit followed by zinc and lead flotation circuits is envisioned in the PEA. Payable silver follows the lead and reports to the lead concentrate.

Metallurgical test work with the recent drilling samples is being conducted at RDI. Preliminary results indicate that a conventional polymetallic process flowsheet will be able to produce the marketable grade concentrates. Historical metallurgical results have been used for concentrate recoveries and grade. The results were averaged for the last five years of operation. The lead concentrate, assaying an average 67% Pb and 34 oz/t Ag, is estimated to recover 91% Pb and 89% Ag. The zinc concentrate, assaying 58% Zn, will recover 92% Zn.

The production schedule is presented in the Table below.

Table 5: Production Schedule

 

Operating Costs
 

Cash costs and AISC per payable pound of zinc sold are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”.

Mine operating costs are based on experienced local contract labor and equipment for mining operations. A zero-based efficiency and cost estimate was completed based on current underground contractors’ rates and guidance benchmarked against other like operations. Electrical power costs are based on scheduled projected loads applying an estimated power factor correction and applicable Avista Utilities rates for all projected mine, milling and site operations. Mining costs are based on cut and fill techniques in the Newgard, Quill and UTZ mineral zones, and LHOS in the remaining deposits.

Mill operating costs are within guidance resulting from bench marking similar mill operations in north Idaho. Mine site general and administrative (G&A) costs are determined based on anticipated staffing levels and similar compensation compatible with area salaries.

Annual and LOM cost metrics are presented in the Table below.

Table 6: Operating Costs

Cash Flow & Valuation

EBITDA, pre-tax cash flow and cash flow are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”.

The project is expected to generate pre-tax free cash flow of $191 million over its 10-year mine life and $154 million on an after-tax basis. The Company expects to reinvest a portion of its pre-tax cash flows on its high-grade silver program, which may reduce the tax assumptions accounted for in the project economics. Annual free cash flow increases in later years of the mine plan due to higher silver grades at deeper elevations. The Company’s goal is to significantly increase the free cash flow in earlier years based on its ongoing high-grade silver exploration program.

The financial summary is presented in the Table below.

Table 7: Cash Flow & Valuation

 

Note: all figures expressed in USD 000’s unless otherwise stated
 

Sensitivities

The tables below summarize the after-tax sensitivities of NPV and IRR, with respect to metal prices and costs.

Table 8: Sensitivities

 

UPCOMING EVENTS
 

HC Wainwright Mining Conference

Bunker Hill presentation: April 20, 2021 at 1:30PM ET / 10:30AM PT

Join Us: REGISTER NOW

121 Mining Investment Americas

April 27-29, 2021

https://www.weare121.com/121mininginvestment-new-york/

QUALIFIED PERSON

MineTech developed the mine infrastructure, capital expenditures and operating expenditures related portions of the PEA, as well as portions of the mine plan and operating schedules in coordination with RDA and Pro Solv Consulting, LLC. Robert Todd, P.E. is a Principal of MineTech, a registered engineer in Idaho, consultant to the Company and an independent “qualified person” as defined by NI 43-101.

Mr. Scott E. Wilson, CPG, President of RDA and a consultant to the Company, is an independent “qualified person” as defined by NI 43-101 and is acting as the qualified person for the Company. He has reviewed and approved the technical information summarized in this news release.

The qualified persons have verified the information disclosed herein, including the sampling, preparation, security and analytical procedures underlying such information, and are not aware of any significant risks and uncertainties that could be expected to affect the reliability or confidence in the information discussed herein.

ABOUT BUNKER HILL MINING CORP.

Under new Idaho-based leadership, Bunker Hill Mining Corp. intends to sustainably restart and develop the Bunker Hill Mine as the first step in consolidating a portfolio of North American precious-metal assets with a focus on silver. Information about the Company is available on its website, www.bunkerhillmining.com , or under the Company’s profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov .

For additional information contact: ir@bunkerhillmining.com

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. Forward-looking statements are not comprised of historical facts. 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 terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “projects”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts.

Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. The key risks and uncertainties include, but are not limited to: local and global political and economic conditions; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy, government ownership requirements, changes in environmental, tax and other laws or regulations and the interpretation thereof; developments with respect to the coronavirus disease 2019 (“COVID-19”) pandemic, including the duration, severity and scope of the pandemic and potential impacts on mining operations; and other risk factors detailed from time to time in the Company’s reports filed on SEDAR and EDGAR.

Forward-looking information and statements in this news release include statements concerning, among other things: the potential of the Bunker Hill Mine to be re-started rapidly as a low-cost, long life, sustainable operation based on the results of the PEA; the PEA representing robust financial returns; the potential of the restart plan to create jobs, ensure long-term environmental-management partnerships, and drive the long-term development of the Bunker Hill Mine’s resources; the timing for filing the PEA technical report; the timing, amount and duration of future production; future cash costs and AISC; commodity prices; the estimated capital and operating costs; the Company’s ability to discover new mineralization; the Company’s ability to self-fund high-grade silver exploration efforts to further increase cash flow margins; the timing for the Company’s progression of further technical studies and project finance discussions; potential sustainability impacts based on the results of the PEA, including the Bunker Hill Mine’s development and operations generating new jobs in Shoshone County, with such job creation having the potential to reduce unemployment in the county, procurement by the Bunker Hill Mine injecting additional funds into the local economy annually, and the Bunker Hill Mine achieving carbon neutrality in year one of operations and maintaining a minimal environmental footprint for the LOM; the potential for a reduction in the production of acid rock drainage; the potential for a reduction in the challenge and cost of water management; LOM capital improvements; metal recoveries; the Company’s plans to reinvest a portion of its pre-tax cash flows on its high-grade silver program; the Company’s goal to significantly increase free cash flow in the earlier years of the PEA based on its ongoing high-grade silver exploration program; the estimates of free cash flow, net present value and economic returns from the Bunker Hill Mine based on the results of the PEA; opportunities to increase the economics of the Bunker Hill Mine; our plans and expectations for the Bunker Hill Mine; and the Company’s intentions regarding its objectives, goals or future plans and statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: the ability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labor and international travel and supply chains; failure to identify mineral resources; failure to convert estimated mineral resources to reserves; the inability to complete a feasibility study which recommends a production decision; the preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; political risks; changes in equity markets; uncertainties relating to the availability and costs of financing needed in the future; the inability of the Company to budget and manage its liquidity in light of the failure to obtain additional financing, including the ability of the Company to complete the payments pursuant to the terms of the agreement to acquire the Bunker Hill Mine Complex; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of projects; capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry; and those risks set out in the Company’s public documents filed on SEDAR and EDGAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Cautionary Note to United States Investors

This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve estimates included in this press release have been disclosed in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian disclosure standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (“SEC”), and resource and reserve information contained in this press release may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term “resource” does not equate to the term “reserves”. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC’s disclosure standards normally do not permit the inclusion of information concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” by U.S. standards in documents filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. U.S. investors should also understand that “inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that all or any part of an “inferred mineral resource” exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in-place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for disclosure of “reserves” are also not the same as those of the SEC, and reserves disclosed by the Company in accordance with NI 43-101 may not qualify as “reserves” under SEC standards. Accordingly, information concerning mineral deposits may not be comparable with information made public by companies that report in accordance with U.S. standards.

Cautionary Note Regarding Non-GAAP Measures

This news release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards (“IFRS”) or U.S. GAAP, including cash costs and AISC per payable pound of zinc sold,EBITDA, pre-tax cash flow and free cash flow. Non-GAAP measures do not have any standardized meaning prescribed under IFRS or U.S. GAAP and, therefore, they may not be comparable to similar measures employed by other companies. The Company believes that, in addition to conventional measures prepared in accordance with IFRS and U.S. GAAP, certain investors use this information to evaluate its performance. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS or U.S. GAAP.

Bunker Hill Announces Robust Restart PEA: $101m Npv, 46% Irr, 2.5 Year Payback, $42m Initial Capex, $20m Average Annual Fcf Over 10 Years

 

TORONTO, April 20, 2021 (GLOBE NEWSWIRE) — Bunker Hill Mining Corp. (CSE: BNKR) (“Bunker Hill” or the “Company) is pleased to report the results of its Preliminary Economic Assessment (“PEA”) for the Bunker Hill Mine in Idaho’s Silver Valley, USA.

The PEA contemplates a $42 million initial capital cost (including 20% contingency) to rapidly restart the mine, generating approximately $20 million of annual average free cash flow over a 10-year mine life, and producing over 550 million pounds of zinc, 290 million pounds of lead, and 7 million ounces of silver at all-in sustaining costs (“AISC”) of $0.65 per payable pound of zinc (net of by-products).

Sam Ash, CEO of Bunker Hill, stated: “Our PEA confirms that by maximizing the use of existing resources, partnerships and infrastructure, the Bunker Hill Mine has the potential to be re-started rapidly as a low-cost, long life, sustainable operation. Pleasingly for our investors, the robust financial returns in the PEA, including a $101 million NPV, 46% IRR, and 2.5 year payback, do not include the significant upside to come from the on-going high-grade silver exploration which we expect to further increase cash flow margins. Based an annual average free cash flow of $20 million at metal prices below spot levels, we can self-fund these exploration efforts while continuing to grow the company. We look forward to progressing further technical studies and project finance discussions over the coming months.”

The early and robust cash-flow generated by this restart plan is designed to deliver optimal returns to all stakeholders, creating 150-200 new mining and administrative jobs within the local community, ensuring long-term environmental-management partnerships with the U.S. EPA and IDEQ, and driving the long-term development of the mine’s resources for many years to come.

The PEA was prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). MineTech USA, LLC (“MineTech”) developed the mine infrastructure, capital expenditures and operating expenditures related portions of the PEA as well as portions of the mine plan and operating schedules in coordination with Resource Development Associates Inc. (“RDA”) and Pro Solv Consulting, LLC. The Company plans to file the completed PEA technical report on SEDAR within 45 days of this press release and make it available on the Company’s website. All “t” references in this press release are to short tons and “$” references are in U.S. dollars.

Table 1 summarizes the key findings of the PEA.

Table 1: PEA Summary

 

The PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the project described in the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Sustainability Impacts

The mine’s development and operations will generate between 150-200 new jobs in Shoshone County that will pay twice the county’s median household income, on average. This has the potential to reduce unemployment in the county by more than ten percent. Procurement by the mine is projected to inject an additional $15 million into the local economy annually.

The mine will achieve carbon neutrality in year one of operations while depositing all waste and tailings underground to maintain a minimal environmental footprint. The production of low porosity paste from tailings will be an integral part of long-term water management. By sealing sulfide and pyrite-rich mineralization with paste, production of acid rock drainage will be reduced substantially and permanently. This will reduce the challenge and cost of water management from year one onward.

Mineral Resource Inventory

The Bunker Hill Mine is located in the historic Coeur d’Alene Mining District in Kellogg, Idaho at the base of Silver Mountain. It was operated from 1885 until 1981 when it was closed due to low metal prices, an extended labor strike, and capital short-falls required to meet new environmental standards. Although attempts were made to modernize and operate the mine until 1991, the mill and smelter facilities were removed and reclaimed along with the tailings impoundment. The underground workings, surface portal and shaft access points remain intact along with the mine office and maintenance complex. Given the historic reserves and existing infrastructure, Bunker Hill management has assessed the mine’s rapid restart potential, which is the subject of today’s published PEA.

The PEA is based on the Bunker Hill Mineral Resource, which was published on March 22, 2021, following the drilling program conducted in 2020 and early 2021 to validate the historical reserves. The PEA includes a mining inventory of 5.5Mt, which represents a portion of the 4.4Mt Indicated mineral resource and 5.6Mt Inferred mineral resource. Given the 10-year mine life, the mine plan has been based on prioritizing higher grade material. The mine production schedule is based on a 5.0% zinc operating cut-off grade and the 3.3% zinc cut-off grade which includes Indicated and Inferred mineral resources.

Table 2: Mineral Resources

Notes: Mineral resources are reported at a zinc cutoff grade of 3.3%. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves. Mineral resources are reported in situ and undiluted. Mineral resources meet the reasonable prospects of eventual economic extraction due to the fact that the entire vertical extents of the mineralization have been developed on mining levels every two-hundred feet. Newgard and Quill were being actively exploited and developed prior to the shutdown of mining operations in 1991. High grade capping was applied to the assays prior to grade estimation. Grades are estimated using Inverse Distance Cubed (ID3) interpolation techniques. Grades were estimated into a regularized 5 ft x 5 ft x 5 ft block model. A bulk density of 11.3 cubic feet per ton was applied to the entire mineral resource based upon historic density values from production records at the Bunker Hill Mine. Two-hundred sixty-one (261) drillholes, totaling 29,380-feet, containing 5,720 Pb, Zn and Ag assays were used in the determination of mineralization. Drill hole data was collected on 5-foot composite intervals which resulted in 4,483 composite assays. Additionally, 4,545 actual production car samples and 394 recent channel sample verification samples were used for the resource estimate. Historic mining voids, stopes and development drifting have been accounted for in the mineral resource estimate. For additional information regarding the mineral resources estimate, please refer to the Company’s news release dated March 22, 2021.

 

 

Infrastructure Overview and Initial Capital Costs

The vast underground workings, surface portals, mine office, maintenance complex, and 9-level shaft access points for the Bunker Hill Mine remain intact. The Kellogg Tunnel (“KT”) portal adjacent to the surface infrastructure connects horizontally by rail to the underground hoisting facilities on 9-level, approximately 9,500 feet to the south. Water seepage above the 9-level drains naturally out of the KT, and laterals below the 9-level must be dewatered prior to production commencement. All water is collected at the portal and sent for treatment. The underground workings are extensive, and only the infrastructure germane to the opening of the mine is being described in the PEA. Several shafts and raises connect to the 9-level and its underground infrastructure is central to the mine and home to the #1 and #2 hoistrooms, material bins, substations and shops. Shafts at the mine are inclined rail; the #1 being the production shaft and #2 materials and personnel.

The mine is currently accessed by the KT and 5-level portals located just above the Town of Wardner.

The utilization of this pre-existing infrastructure allows for a restart of the mine with an initial capital investment of approximately $42 million, net of pre-commercial production revenue, as detailed in the Table below.   Each of the initial capital items listed (excluding pre-production revenue) include a 20% contingency.

Table 3: Initial Capital

Mill capacity and power consumption are based on 1,500 tons per day at 90% availability, a Bond Work Index of 14.5 kW-hrs/t and a 150-mesh grind, which is supported by the preliminary metallurgical work. Capital costs include equipment and installation labor. Metallurgical work is ongoing at Resource Development, Inc. (“RDI”) and the Company is evaluating multiple sourcing alternatives for processing and equipment.

Other life of mine capital improvements include the following, as set forth in the PEA:

• Connect the 5-level and 9-level with an access ramp
• Remove and replace Shaft#1 hoist and hoist works
• Recondition Shaft #2 hoist and hoist works
• Recondition Shafts #1 and #2; replace the existing rail with a modular track system and associated conveyances
• Install new mine wide power distribution
• Install fiber optic and Sentinel communications from the surface to the main underground facilities
• Install a backfill paste plant on the 5-level; allows efficient access to cement, fly ash and reagents
• Install a primarily gravity backfill distribution system to active and historical mining areas
• Recondition the KT and remove existing rail to convert to rubber tire access
• Introduce rubber tire development to the stopes as required
• Vertical development for muck passes, escapeways and ventilation
• Excavations for milling, flotation and backfilling equipment
• Fan and air control installations
• Tailings water treatment plant

Mining

The Newgard/Quill resource was designed and scheduled utilizing a traditional overhead cut and fill mining method. The cut and fill stopes are accessed via an incline ramp developed between levels. The ramp provides ventilation, utilities, and secondary escapeway, as well as connecting the entire mine with rubber tire access. Long-hole open stoping (“LHOS”) is also employed similar to the previous mining extraction methods. The LHOS areas are accessed through existing excavations rehabilitated to modern mining standards. Backfill requirements are provided via an underground paste plant and distribution system.

Production commences six months following the start of construction, targeting 200 tons/day (“tpd”) ramping up to 1,500 tpd over a 14-month period. The slow ramp up allows for infrastructure components to be completed and commissioned and to ensure the mine is adequately developed to maintain consistent production. Initially, production will be targeted above the 9-level as the hoists and first 200-foot section of shaft rehabilitation are completed. The mine plan is developed to allow sequential water draw down and shaft rehabilitation between levels as new production horizons are required. This sequencing is continued to the 26-level.

As the mine matures and progresses deeper, the resource transitions from primarily zinc to primarily lead mineralization in Year 9. In Year 8, the mine plan also transitions away from cut and fill production to LHOS for the remainder of the mine life.

Exploration potential is significant throughout the mine. Due to the substantial existing workings, Bunker Hill has the opportunity to delineate specific mineralized zones (zinc or lead) that maximizes cash flow potential depending on commodity pricing.

The mining schedule is presented in the Table below.

Table 4: Mine Schedule

 

Processing
 

The PEA envisages a crushing and milling plant to be centrally located on the 9-level. Milled material will then be pumped in slurry to the flotation and paste plant on the 5-level. The flotation plant will generate concentrates which will be transported to surface for shipment. The paste plant will generate paste for geotechnical fill and tailings disposal in open drifts and stopes in the mine. This approach optimizes material transport costs while eliminating the need for surface tailings disposal.

The local utility substation is located next to the mine main offices and supplies power to the mine and other local consumers. The existing power feeds to the mine are scheduled to be replaced prior to full production and the substation will require upgrades by Year 3 to allow for the additional dewatering loads as the mine advances to depth.

A traditional mill grinding circuit followed by zinc and lead flotation circuits is envisioned in the PEA. Payable silver follows the lead and reports to the lead concentrate.

Metallurgical test work with the recent drilling samples is being conducted at RDI. Preliminary results indicate that a conventional polymetallic process flowsheet will be able to produce the marketable grade concentrates. Historical metallurgical results have been used for concentrate recoveries and grade. The results were averaged for the last five years of operation. The lead concentrate, assaying an average 67% Pb and 34 oz/t Ag, is estimated to recover 91% Pb and 89% Ag. The zinc concentrate, assaying 58% Zn, will recover 92% Zn.

The production schedule is presented in the Table below.

Table 5: Production Schedule

 

Operating Costs
 

Cash costs and AISC per payable pound of zinc sold are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”.

Mine operating costs are based on experienced local contract labor and equipment for mining operations. A zero-based efficiency and cost estimate was completed based on current underground contractors’ rates and guidance benchmarked against other like operations. Electrical power costs are based on scheduled projected loads applying an estimated power factor correction and applicable Avista Utilities rates for all projected mine, milling and site operations. Mining costs are based on cut and fill techniques in the Newgard, Quill and UTZ mineral zones, and LHOS in the remaining deposits.

Mill operating costs are within guidance resulting from bench marking similar mill operations in north Idaho. Mine site general and administrative (G&A) costs are determined based on anticipated staffing levels and similar compensation compatible with area salaries.

Annual and LOM cost metrics are presented in the Table below.

Table 6: Operating Costs

Cash Flow & Valuation

EBITDA, pre-tax cash flow and cash flow are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”.

The project is expected to generate pre-tax free cash flow of $191 million over its 10-year mine life and $154 million on an after-tax basis. The Company expects to reinvest a portion of its pre-tax cash flows on its high-grade silver program, which may reduce the tax assumptions accounted for in the project economics. Annual free cash flow increases in later years of the mine plan due to higher silver grades at deeper elevations. The Company’s goal is to significantly increase the free cash flow in earlier years based on its ongoing high-grade silver exploration program.

The financial summary is presented in the Table below.

Table 7: Cash Flow & Valuation

 

Note: all figures expressed in USD 000’s unless otherwise stated
 

Sensitivities

The tables below summarize the after-tax sensitivities of NPV and IRR, with respect to metal prices and costs.

Table 8: Sensitivities

 

UPCOMING EVENTS
 

HC Wainwright Mining Conference

Bunker Hill presentation: April 20, 2021 at 1:30PM ET / 10:30AM PT

Join Us: REGISTER NOW

121 Mining Investment Americas

April 27-29, 2021

https://www.weare121.com/121mininginvestment-new-york/

QUALIFIED PERSON

MineTech developed the mine infrastructure, capital expenditures and operating expenditures related portions of the PEA, as well as portions of the mine plan and operating schedules in coordination with RDA and Pro Solv Consulting, LLC. Robert Todd, P.E. is a Principal of MineTech, a registered engineer in Idaho, consultant to the Company and an independent “qualified person” as defined by NI 43-101.

Mr. Scott E. Wilson, CPG, President of RDA and a consultant to the Company, is an independent “qualified person” as defined by NI 43-101 and is acting as the qualified person for the Company. He has reviewed and approved the technical information summarized in this news release.

The qualified persons have verified the information disclosed herein, including the sampling, preparation, security and analytical procedures underlying such information, and are not aware of any significant risks and uncertainties that could be expected to affect the reliability or confidence in the information discussed herein.

ABOUT BUNKER HILL MINING CORP.

Under new Idaho-based leadership, Bunker Hill Mining Corp. intends to sustainably restart and develop the Bunker Hill Mine as the first step in consolidating a portfolio of North American precious-metal assets with a focus on silver. Information about the Company is available on its website, www.bunkerhillmining.com , or under the Company’s profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov .

For additional information contact: ir@bunkerhillmining.com

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. Forward-looking statements are not comprised of historical facts. 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 terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “projects”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts.

Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. The key risks and uncertainties include, but are not limited to: local and global political and economic conditions; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy, government ownership requirements, changes in environmental, tax and other laws or regulations and the interpretation thereof; developments with respect to the coronavirus disease 2019 (“COVID-19”) pandemic, including the duration, severity and scope of the pandemic and potential impacts on mining operations; and other risk factors detailed from time to time in the Company’s reports filed on SEDAR and EDGAR.

Forward-looking information and statements in this news release include statements concerning, among other things: the potential of the Bunker Hill Mine to be re-started rapidly as a low-cost, long life, sustainable operation based on the results of the PEA; the PEA representing robust financial returns; the potential of the restart plan to create jobs, ensure long-term environmental-management partnerships, and drive the long-term development of the Bunker Hill Mine’s resources; the timing for filing the PEA technical report; the timing, amount and duration of future production; future cash costs and AISC; commodity prices; the estimated capital and operating costs; the Company’s ability to discover new mineralization; the Company’s ability to self-fund high-grade silver exploration efforts to further increase cash flow margins; the timing for the Company’s progression of further technical studies and project finance discussions; potential sustainability impacts based on the results of the PEA, including the Bunker Hill Mine’s development and operations generating new jobs in Shoshone County, with such job creation having the potential to reduce unemployment in the county, procurement by the Bunker Hill Mine injecting additional funds into the local economy annually, and the Bunker Hill Mine achieving carbon neutrality in year one of operations and maintaining a minimal environmental footprint for the LOM; the potential for a reduction in the production of acid rock drainage; the potential for a reduction in the challenge and cost of water management; LOM capital improvements; metal recoveries; the Company’s plans to reinvest a portion of its pre-tax cash flows on its high-grade silver program; the Company’s goal to significantly increase free cash flow in the earlier years of the PEA based on its ongoing high-grade silver exploration program; the estimates of free cash flow, net present value and economic returns from the Bunker Hill Mine based on the results of the PEA; opportunities to increase the economics of the Bunker Hill Mine; our plans and expectations for the Bunker Hill Mine; and the Company’s intentions regarding its objectives, goals or future plans and statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: the ability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labor and international travel and supply chains; failure to identify mineral resources; failure to convert estimated mineral resources to reserves; the inability to complete a feasibility study which recommends a production decision; the preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; political risks; changes in equity markets; uncertainties relating to the availability and costs of financing needed in the future; the inability of the Company to budget and manage its liquidity in light of the failure to obtain additional financing, including the ability of the Company to complete the payments pursuant to the terms of the agreement to acquire the Bunker Hill Mine Complex; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of projects; capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry; and those risks set out in the Company’s public documents filed on SEDAR and EDGAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Cautionary Note to United States Investors

This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve estimates included in this press release have been disclosed in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian disclosure standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (“SEC”), and resource and reserve information contained in this press release may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term “resource” does not equate to the term “reserves”. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC’s disclosure standards normally do not permit the inclusion of information concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” by U.S. standards in documents filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. U.S. investors should also understand that “inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that all or any part of an “inferred mineral resource” exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in-place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for disclosure of “reserves” are also not the same as those of the SEC, and reserves disclosed by the Company in accordance with NI 43-101 may not qualify as “reserves” under SEC standards. Accordingly, information concerning mineral deposits may not be comparable with information made public by companies that report in accordance with U.S. standards.

Cautionary Note Regarding Non-GAAP Measures

This news release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards (“IFRS”) or U.S. GAAP, including cash costs and AISC per payable pound of zinc sold,EBITDA, pre-tax cash flow and free cash flow. Non-GAAP measures do not have any standardized meaning prescribed under IFRS or U.S. GAAP and, therefore, they may not be comparable to similar measures employed by other companies. The Company believes that, in addition to conventional measures prepared in accordance with IFRS and U.S. GAAP, certain investors use this information to evaluate its performance. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS or U.S. GAAP.

Bunker Hill Mining to Announce PEA Results on Tuesday, April 20; Host 6ix Virtual Investor Event on Wednesday, April 21

 

TORONTO, April 19, 2021 (GLOBE NEWSWIRE) — Bunker Hill Mining Corp. (the “Company”) (CSE: BNKR) announces that it will be releasing its Preliminary Economic Assessment (“PEA”) results on Tuesday, April 20, 2021 prior to markets opening.

On Wednesday, April 21, 2021 at 11:00 a.m. EST / 8:00 a.m. PST, Executive Chairman Richard Williams, CEO Sam Ash, and CFO David Wiens will discuss the results and next steps in a live interactive 6ix virtual investor event.

The virtual investor event can be accessed by registering with the following link: https://my.6ix.com/Heq9Km3U

About Bunker Hill Mining
Corp.

Under new Idaho-based leadership, Bunker Hill Mining Corp. intends to sustainably restart and develop the Bunker Hill Mine as the first step in consolidating a portfolio of North American precious-metal assets with a focus on silver. Information about the Company is available on its website, www.bunkerhillmining.com , or under the Company’s profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov .

For additional information contact: ir@bunkerhillmining.com

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. Forward-looking statements are not comprised of historical facts. 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”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the timing of the release of the Company’s PEA and live interactive 6ix virtual investor event. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Source: Bunker Hill Mining

Bunker Hill Mining to Announce PEA Results on Tuesday, April 20; Host 6ix Virtual Investor Event on Wednesday, April 21

 

TORONTO, April 19, 2021 (GLOBE NEWSWIRE) — Bunker Hill Mining Corp. (the “Company”) (CSE: BNKR) announces that it will be releasing its Preliminary Economic Assessment (“PEA”) results on Tuesday, April 20, 2021 prior to markets opening.

On Wednesday, April 21, 2021 at 11:00 a.m. EST / 8:00 a.m. PST, Executive Chairman Richard Williams, CEO Sam Ash, and CFO David Wiens will discuss the results and next steps in a live interactive 6ix virtual investor event.

The virtual investor event can be accessed by registering with the following link: https://my.6ix.com/Heq9Km3U

About Bunker Hill Mining
Corp.

Under new Idaho-based leadership, Bunker Hill Mining Corp. intends to sustainably restart and develop the Bunker Hill Mine as the first step in consolidating a portfolio of North American precious-metal assets with a focus on silver. Information about the Company is available on its website, www.bunkerhillmining.com , or under the Company’s profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov .

For additional information contact: ir@bunkerhillmining.com

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. Forward-looking statements are not comprised of historical facts. 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”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the timing of the release of the Company’s PEA and live interactive 6ix virtual investor event. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Source: Bunker Hill Mining

Monday, April 19, 2021

Sierra Metals (SMTS)(SMT:CA)
Updating Estimates Based on Lower-Than-Expected First Quarter Production

As of April 24, 2020, Noble Capital Markets research on Sierra Metals is published under ticker symbols (SMTS and SMT:CA). The price target is in USD and based on ticker symbol SMTS. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Sierra Metals Inc is a precious and base metals producer in Latin America. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold in Mexico and Peru. Its activity includes the operation of the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico. Yauricocha is an underground polymetallic mine using the sublevel block caving and cut-and-fill mining methods. Bolivar is a copper-silver-zinc-gold underground mine using room-and-pillar mining method. The majority of the revenue is earned by selling of the mineral concentrates to its customers in Peru.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

First quarter production was below expectations. First quarter production was negatively impacted by lower grades of ore mined at the Yauricocha and Bolivar mines. Copper, lead, and zinc production amounted to 7.9 million, 9.0 million, and 24.1 million pounds, respectively, while silver and gold production amounted to 961.0 and 2.6 thousand ounces. Copper production decreased 26% relative to the fourth quarter of 2020 and 33% compared to the prior year period.


2021 production guidance unchanged.  First quarter production results were impacted by some transitory operational issues that resulted in production from lower grade ore bodies. Despite lower-than-expected production, the company is still expected to meet its forecasted production guidance ranges despite the ongoing challenges of the pandemic. Sierra Metals will release first quarter 2021 financial …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Friday, April 16, 2021

Palladium One Mining Inc. (NKORF)(PDM:CA)
Shaping Up to be a Promising Open Pit Scenario

Palladium One Mining Inc is a palladium dominant, PGE, nickel, copper exploration and development company. Its assets consist of the Lantinen Koillismaa and Kostonjarvi PGE-Cu-Ni projects, located in north-central Finland and the Tyko Ni-Cu-PGE and Disraeli PGE-Ni-Cu properties in Ontario, Canada. LK is targeting disseminated sulphide along 38 kilometers of favorable basal contact. The KS project is targeting massive sulphide within a 20,000-hectare land package covering a regional scale gravity and magnetic geophysical anomaly. Tyko is a 13,000-hectare project targeting disseminated and massive sulphide in a highly metamorphosed Archean terrain. Disraeli is a 2,500-hectare project targeting PGE-rich disseminated and massive sulphide in a highly productive Proterozoic mid-continent rift.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Phase II drilling program at the LK Project. In November 2020, the company began its 17,500-meter Phase II resource definition drilling program at its palladium-dominant Lantinen Koillismaa (LK) project in Finland. To date, 46 holes, representing 9,220 meters of drilling have been completed at Kaukua South. Results for 29 drill holes have been released, while 17 are pending. Drilling has focused on defining mineralization to a depth of 200 meters and continues to affirm continuity of near surface open pit grades and widths. Drilling at greater depth has also returned impressive results as demonstrated by Hole LK21-061 which returned 2.32 grams of palladium equivalent at 203.2 meters to 250.0 meters depth. Drilling has been paused for the spring thaw and is scheduled to resume in mid-May.


Opportunity for a deeper open pit mine.  Kaukua South consists of two mineralized zones. The upper zone typically returns higher Cu-Ni values and lower PGE grades. While less continuous than the lower zone, it exhibits greater widths. The continuous lower zone, the focus of the drilling program, is like the Kaukua deposit with high PGE tenors. Management plans to increase the average drilling depth …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Sierra Metals Reports First Quarter 2021 Production Results

 

Maintaining Full-Year 2021 Production Guidance

(All metal prices reported in USD)

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) announces first quarter 2021 production results featuring 4.5% growth of consolidated ore throughput.

Results are from Sierra Metals’ three underground mines in Latin America: The Yauricocha polymetallic mine in Peru, and the Bolivar copper and Cusi silver mines in Mexico.

First Quarter 2021 Production Highlights

• Silver production of 1.0 million ounces; a 1% increase from Q1 2020
• Copper production of 7.9 million pounds; a 33% decrease from Q1 2020; mainly due to a temporary shift from copper-rich zones to lower grade polymetallic areas at Yauricocha caused by temporary operational challenges.
• Lead production of 9.0 million pounds; a 1% decrease from Q1 2020
• Zinc production of 24.1 million pounds; an 11% increase from Q1 2020
• Gold production of 2,636 ounces; a 28% decrease from Q1 2020
• Copper equivalent production of 25.5 million pounds; an 18% decrease from Q1 2020
• Record quarterly throughput of 3,728 tpd at the Yauricocha Mine

The Yauricocha Mine achieved 14% higher throughput as compared to Q1 2020 despite the various operational challenges still posed by the COVID-19 pandemic. Lower grades for all metals negated the impact of higher throughput resulting in a 21% decrease in copper equivalent pounds produced during Q1 2021 compared to Q1 2020.

At Bolivar, a 2% decrease in throughput combined with lower grades for all metals resulted in a 20% decrease in copper equivalent pounds produced during Q1 2021 as compared to Q1 2020. At Cusi, 30% higher silver grades offset the impact of 2% lower throughput in Q1 2021 as compared to Q1 2020, resulting in 17% higher silver equivalent Q1 2021 production.

Luis Marchese, CEO of Sierra Metals, commented, “The health and safety of our work force and surrounding communities continues to be of the upmost importance and we continue to manage the implications of COVID-19 using best practices with a goal of avoiding any mine closures, while continuing to aim for production targets.”

He continued,“Facing ongoing operational difficulties due to Covid-19 in Peru and México, the Company performed relatively well during the first quarter with a 4.5% increase in consolidated throughout as well as record quarterly throughput at Yauricocha. These results were despite of other additional challenges, including a power failure at the Cusi Mine resulting from the large scale power outage originating in Texas. Additionally, at Yauricocha we experienced some operational issues at the Esperanza Zone which provides most of the copper ore for the mine. However, these have since been resolved and normal operations have resumed. Furthermore, the annual production guidance previously provided remains in place without any changes.”

He concluded,“The coming months continue to look challenging for the Company due to Covid-19 operational constraints at all mines but particularly in Peru. We expect to improve upon the first quarter production results and continue to work on completion of Preliminary Feasibility Studies for all three mines building upon the positive Preliminary Economic Assessments released in 2020. Brownfield and Greenfield Exploration continues, and we strive to optimize and improve operations with an aim of reducing costs where possible at all mines.”

Consolidated Production Results

^{(1) Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2021 were calculated using the following realized prices: $26.44/oz Ag, $3.88/lb Cu, $1.24/lb Zn, $0.92/lb Pb, $1,778/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2020 were calculated using the following realized prices: $16.57/oz Ag, $2.53/lb Cu, $0.93/lb Zn, $0.80/lb Pb, $1,585/oz Au.}

Yauricocha Mine, Peru

The Yauricocha Mine processed 326,211 tonnes during Q1 2021, which is a 14% increase from Q1 2020, despite continuing to face various COVID-19 related operational challenges during the quarter.

Negative variances in grades resulted from the irregular contribution from the high-grade cuerpos chicos zones,due to lack of development as well as operational issues at the copper rich Esperanza Zone which has subsequently been corrected This led to a higher proportion of ore coming from the low-grade larger ore bodies. Q1 2021 metal production was 50%, 29% and 9% lower for copper, gold and silver respectively, while zinc and lead production were 11% and 1% higher as compared to Q1 2020.

A summary of production from the Yauricocha Mine for Q1 2021 is provided below:

^{(1) Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2021 were calculated using the following realized prices: $26.44/oz Ag, $3.88/lb Cu, $1.24/lb Zn, $0.92/lb Pb, $1,778/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2020 were calculated using the following realized prices: $16.57/oz Ag, $2.53/lb Cu, $0.93/lb Zn, $0.80/lb Pb, $1,585/oz Au.}

Bolivar Mine, Mexico

Mining operations at Bolivar in Q1 2021 were impacted by the lack of manpower due to COVID-19 and bad weather earlier during the quarter. As a result, the Bolivar mine processed 371,608 tonnes in Q1 2021, representing a 2% decrease from Q1 2020. Head grades were also impacted by delays in development attributable to COVID-19 issues. Grades for copper, silver and gold were 13%, 7% and 32% lower respectively, as compared to Q1 2020. The decrease in throughput and grades resulted in a 20% decrease in copper equivalent pounds produced during Q1 2021 as compared to Q1 2020. In Q1 2021, copper production decreased by 18% to 5.2 million pounds, silver production decreased 6% to 0.2 million ounces, and gold production decreased 27% to 1,591 ounces compared to Q1 2020.

A summary of production for the Bolivar Mine for Q1 2021 is provided below:

^{(1) Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2021 were calculated using the following realized prices: $26.44/oz Ag, $3.88/lb Cu, $1.24/lb Zn, $0.92/lb Pb, $1,778/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2020 were calculated using the following realized prices: $16.57/oz Ag, $2.53/lb Cu, $0.93/lb Zn, $0.80/lb Pb, $1,585/oz Au.}

Cusi Mine, Mexico

Operating at an average throughput of 875 tpd, Cusi processed 2% lower tonnes of ore in Q1 2021 as compared to Q1 2020. Silver grades were 30% higher than Q1 2020 as mining continued in the high-grade Northeast Southwest vein system. Silver production increased 29% to 0.3 million ounces, but gold and lead production were 27% and 37% lower due to lower grades for these metals. Additionally, production was impacted by the large scale power outage originating in Texas that was experienced during the quarter. Silver equivalent ounces produced for the quarter increased to 336,000 ounces or 17% higher as compared to Q1 2020.

A summary of production for the Cusi Mine for Q1 2021 is provided below:

^{(1) Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2021 were calculated using the following realized prices: $26.44/oz Ag, $3.88/lb Cu, $1.24/lb Zn, $0.92/lb Pb, $1,778/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2020 were calculated using the following realized prices: $16.57/oz Ag, $2.53/lb Cu, $0.93/lb Zn, $0.80/lb Pb, $1,585/oz Au.}

Quality Control

All technical production data contained in this news release has been reviewed and approved by Americo Zuzunaga, FAusIMM (CP Mining Engineer) and Vice President of Corporate Planning is a Qualified Person and chartered professional qualifying as a Competent Person under the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Augusto Chung, FAusIMM (CP Metallurgist) and Vice President Special Projects and Metallurgy and a chartered professional qualifying as a Competent Person on metallurgical processes.

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The Company’s Common Shares trade on the Toronto Stock Exchange and the Bolsa de Valores de Lima under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

For further information regarding Sierra Metals, please visit www.sierrametals.com.

Continue to Follow, Like and Watch our progress:

Web: www.sierrametals.com | Twitter: sierrametals | Facebook: SierraMetalsInc | LinkedIn: Sierra Metals Inc | Instagram: sierrametals

Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws related to the Company (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the Company’s operations, including anticipated developments in the Company’s operations in future periods, the Company’s planned exploration activities, the adequacy of the Company’s financial resources, and other events or conditions that may occur in the future. Statements concerning mineral reserve and resource estimates may also be considered to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if and when the properties are developed or further developed. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in our Annual Information Form dated March 18, 2021 in respect of the year ended December 31, 2020 and other risks identified in the Company’s filings with Canadian securities regulators and the U.S. Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above is not exhaustive of the factors that may affect any of the Company’s forward-looking information. Forward looking information includes statements about the future and are inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

Mike McAllister
V.P., Investor Relations
Sierra Metals Inc.
+1 (416) 366-7777
Email: info@sierrametals.com

Luis Marchese
CEO
Sierra Metals Inc.
+1(416) 366-7777

Source: Sierra Metals Inc.

Sierra Metals Reports First Quarter 2021 Production Results

 

Maintaining Full-Year 2021 Production Guidance

(All metal prices reported in USD)

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) announces first quarter 2021 production results featuring 4.5% growth of consolidated ore throughput.

Results are from Sierra Metals’ three underground mines in Latin America: The Yauricocha polymetallic mine in Peru, and the Bolivar copper and Cusi silver mines in Mexico.

First Quarter 2021 Production Highlights

• Silver production of 1.0 million ounces; a 1% increase from Q1 2020
• Copper production of 7.9 million pounds; a 33% decrease from Q1 2020; mainly due to a temporary shift from copper-rich zones to lower grade polymetallic areas at Yauricocha caused by temporary operational challenges.
• Lead production of 9.0 million pounds; a 1% decrease from Q1 2020
• Zinc production of 24.1 million pounds; an 11% increase from Q1 2020
• Gold production of 2,636 ounces; a 28% decrease from Q1 2020
• Copper equivalent production of 25.5 million pounds; an 18% decrease from Q1 2020
• Record quarterly throughput of 3,728 tpd at the Yauricocha Mine

The Yauricocha Mine achieved 14% higher throughput as compared to Q1 2020 despite the various operational challenges still posed by the COVID-19 pandemic. Lower grades for all metals negated the impact of higher throughput resulting in a 21% decrease in copper equivalent pounds produced during Q1 2021 compared to Q1 2020.

At Bolivar, a 2% decrease in throughput combined with lower grades for all metals resulted in a 20% decrease in copper equivalent pounds produced during Q1 2021 as compared to Q1 2020. At Cusi, 30% higher silver grades offset the impact of 2% lower throughput in Q1 2021 as compared to Q1 2020, resulting in 17% higher silver equivalent Q1 2021 production.

Luis Marchese, CEO of Sierra Metals, commented, “The health and safety of our work force and surrounding communities continues to be of the upmost importance and we continue to manage the implications of COVID-19 using best practices with a goal of avoiding any mine closures, while continuing to aim for production targets.”

He continued,“Facing ongoing operational difficulties due to Covid-19 in Peru and México, the Company performed relatively well during the first quarter with a 4.5% increase in consolidated throughout as well as record quarterly throughput at Yauricocha. These results were despite of other additional challenges, including a power failure at the Cusi Mine resulting from the large scale power outage originating in Texas. Additionally, at Yauricocha we experienced some operational issues at the Esperanza Zone which provides most of the copper ore for the mine. However, these have since been resolved and normal operations have resumed. Furthermore, the annual production guidance previously provided remains in place without any changes.”

He concluded,“The coming months continue to look challenging for the Company due to Covid-19 operational constraints at all mines but particularly in Peru. We expect to improve upon the first quarter production results and continue to work on completion of Preliminary Feasibility Studies for all three mines building upon the positive Preliminary Economic Assessments released in 2020. Brownfield and Greenfield Exploration continues, and we strive to optimize and improve operations with an aim of reducing costs where possible at all mines.”

Consolidated Production Results

^{(1) Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2021 were calculated using the following realized prices: $26.44/oz Ag, $3.88/lb Cu, $1.24/lb Zn, $0.92/lb Pb, $1,778/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2020 were calculated using the following realized prices: $16.57/oz Ag, $2.53/lb Cu, $0.93/lb Zn, $0.80/lb Pb, $1,585/oz Au.}

Yauricocha Mine, Peru

The Yauricocha Mine processed 326,211 tonnes during Q1 2021, which is a 14% increase from Q1 2020, despite continuing to face various COVID-19 related operational challenges during the quarter.

Negative variances in grades resulted from the irregular contribution from the high-grade cuerpos chicos zones,due to lack of development as well as operational issues at the copper rich Esperanza Zone which has subsequently been corrected This led to a higher proportion of ore coming from the low-grade larger ore bodies. Q1 2021 metal production was 50%, 29% and 9% lower for copper, gold and silver respectively, while zinc and lead production were 11% and 1% higher as compared to Q1 2020.

A summary of production from the Yauricocha Mine for Q1 2021 is provided below:

^{(1) Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2021 were calculated using the following realized prices: $26.44/oz Ag, $3.88/lb Cu, $1.24/lb Zn, $0.92/lb Pb, $1,778/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2020 were calculated using the following realized prices: $16.57/oz Ag, $2.53/lb Cu, $0.93/lb Zn, $0.80/lb Pb, $1,585/oz Au.}

Bolivar Mine, Mexico

Mining operations at Bolivar in Q1 2021 were impacted by the lack of manpower due to COVID-19 and bad weather earlier during the quarter. As a result, the Bolivar mine processed 371,608 tonnes in Q1 2021, representing a 2% decrease from Q1 2020. Head grades were also impacted by delays in development attributable to COVID-19 issues. Grades for copper, silver and gold were 13%, 7% and 32% lower respectively, as compared to Q1 2020. The decrease in throughput and grades resulted in a 20% decrease in copper equivalent pounds produced during Q1 2021 as compared to Q1 2020. In Q1 2021, copper production decreased by 18% to 5.2 million pounds, silver production decreased 6% to 0.2 million ounces, and gold production decreased 27% to 1,591 ounces compared to Q1 2020.

A summary of production for the Bolivar Mine for Q1 2021 is provided below:

^{(1) Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2021 were calculated using the following realized prices: $26.44/oz Ag, $3.88/lb Cu, $1.24/lb Zn, $0.92/lb Pb, $1,778/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2020 were calculated using the following realized prices: $16.57/oz Ag, $2.53/lb Cu, $0.93/lb Zn, $0.80/lb Pb, $1,585/oz Au.}

Cusi Mine, Mexico

Operating at an average throughput of 875 tpd, Cusi processed 2% lower tonnes of ore in Q1 2021 as compared to Q1 2020. Silver grades were 30% higher than Q1 2020 as mining continued in the high-grade Northeast Southwest vein system. Silver production increased 29% to 0.3 million ounces, but gold and lead production were 27% and 37% lower due to lower grades for these metals. Additionally, production was impacted by the large scale power outage originating in Texas that was experienced during the quarter. Silver equivalent ounces produced for the quarter increased to 336,000 ounces or 17% higher as compared to Q1 2020.

A summary of production for the Cusi Mine for Q1 2021 is provided below:

^{(1) Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2021 were calculated using the following realized prices: $26.44/oz Ag, $3.88/lb Cu, $1.24/lb Zn, $0.92/lb Pb, $1,778/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2020 were calculated using the following realized prices: $16.57/oz Ag, $2.53/lb Cu, $0.93/lb Zn, $0.80/lb Pb, $1,585/oz Au.}

Quality Control

All technical production data contained in this news release has been reviewed and approved by Americo Zuzunaga, FAusIMM (CP Mining Engineer) and Vice President of Corporate Planning is a Qualified Person and chartered professional qualifying as a Competent Person under the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Augusto Chung, FAusIMM (CP Metallurgist) and Vice President Special Projects and Metallurgy and a chartered professional qualifying as a Competent Person on metallurgical processes.

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The Company’s Common Shares trade on the Toronto Stock Exchange and the Bolsa de Valores de Lima under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

For further information regarding Sierra Metals, please visit www.sierrametals.com.

Continue to Follow, Like and Watch our progress:

Web: www.sierrametals.com | Twitter: sierrametals | Facebook: SierraMetalsInc | LinkedIn: Sierra Metals Inc | Instagram: sierrametals

Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws related to the Company (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the Company’s operations, including anticipated developments in the Company’s operations in future periods, the Company’s planned exploration activities, the adequacy of the Company’s financial resources, and other events or conditions that may occur in the future. Statements concerning mineral reserve and resource estimates may also be considered to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if and when the properties are developed or further developed. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in our Annual Information Form dated March 18, 2021 in respect of the year ended December 31, 2020 and other risks identified in the Company’s filings with Canadian securities regulators and the U.S. Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above is not exhaustive of the factors that may affect any of the Company’s forward-looking information. Forward looking information includes statements about the future and are inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

Mike McAllister
V.P., Investor Relations
Sierra Metals Inc.
+1 (416) 366-7777
Email: info@sierrametals.com

Luis Marchese
CEO
Sierra Metals Inc.
+1(416) 366-7777

Source: Sierra Metals Inc.

Palladium One Continues to Intersect Significant Widths at Kaukua South, Drills 47 Meters @ 2.3 g/t Pd_

 

Toronto, Ontario–(Newsfile Corp. – April 15, 2021) – Drilling continues to return significant PGE grades and widths including 47 meters at 2.3 g/t Palladium equivalent (“Pd_Eq”), (Hole LK21-061) at Kaukua South on the Läntinen Koillismaa (“LK”) PGE-Ni-Cu project in Finland, said Palladium One Mining Inc. (TSXV: PDM) (FSE: 7N11) (OTCQB: NKORF) (“Palladium One” or the “Company”) today.

Thus far, 46 holes have been drilled as part of the 17,500-meter Phase II Resource Definition drill program at Kaukua South, including today’s results, 29 have been released, while results for 17 holes are pending. The program’s goal has been to define the mineralization from surface to a depth of only 200 metres over the known 4-kilometer strike length of Kaukua South. In total 9,220 meters have been drilled to date as part of the Phase II program. Drilling is currently in hiatus for the spring thaw and is schedule to resume in mid-May.

Derrick Weyrauch, President and CEO of Palladium One, said, “Drilling at Kaukua South continues to intersect impressive grades and widths, and as evidenced by hole LK21-061 these results also extend to depth. Induced Polarization (IP) surveys along the east and west extensions of Kaukua South have now been completed and we expect preliminary results shortly. The current hiatus in drilling will be used for modelling and target generation on these new extensions”

Highlights

• Drilling continues to demonstrate significant continuity of open pit grades and widths at Kaukua South
• 46.9 meters grading 2.32 g/t Pd_Eq in hole LK21-061
• 52.7 meters grading 1.50 g/t Pd_Eq in hole LK21-059
• 45.4 meters grading 1.58 g/t Pd_Eq in hole LK21-054
• 44.0 meters grading 1.46 g/t Pd_Eq in hole LK21-060
• Kaukua South’s Upper Mineralized Zone delineation could have significant positive implications in a mining scenario by significantly reducing the strip ratio, thereby improving project economics.
• IP surveys on Kaukua South’s western and eastern extensions have been completed.

Kaukua South Infill Drilling

Kaukua South infill drilling continues to demonstrate consistent open pit grades and widths. A total of 29 holes from the Phase II infill drill program on Kaukua South have now been released with intersections such as 47 meters at 2.6 g.t Pd_Eq in hole LK21-045 (see press release March 18, 2021) and 53 meters at 2.1 g/t Pd_Eq*, in hole LK20-028 (see press release January 18, 2021). These 29 holes cover approximately 2 kilometers of the Kaukua South Zone and have returned similar widths and grades to those in the Kaukua NI43-101 Open Pit resource estimate. (Figure 1 and 2).

Kaukua South Upper Mineralized Zone

As the Phase II infill drill program progresses the importance of the Upper Mineralized Zone at Kaukua South is taking shape. Kaukua South consists of two subparallel mineralized zones, the very continuous “Lower Zone” near the base of the Intrusion which is very similar to the Kaukua deposit with high PGE tenors and is the main focus of the current drill program. The “Upper Mineralized Zone” occurs in the hanging wall to the Lower Zone and is characterised by higher Cu-Ni values and lower PGEs (Table 1). The Upper Zone is typically lower grade and more sporadic than the Lower Zone but can exhibit greater widths (Figure 3). It’s position in the hanging wall relative to the Lower Zone is key, its presence has significant positive implications for the open pit potential of Kaukua South as it could reduce the strip ratio and allow an open pit to extend to greater depths than originally contemplated and thereby improve overall project economics.

As such, the Company has revisited and is planning to increase the average drilling depth at Kaukua South in areas with strong Upper Zone mineralization. The revised plan now targets the Lower Zone down to a 300-meter depth compared to the original 200-meter depth target.

IP Survey

The current IP surveys to the west and east of the existing 4-km Kaukua South zone have been completed and preliminary results are anticipated in the coming weeks. The hiatus in the drilling due to the spring thaw will be used to analyse this new data and generate targets to expand the Kaukua South zone. IP has proven to be highly successful at outlining palladium-rich disseminated copper-nickel sulphide mineralization on the LK Project. The discovery of Kaukua South in an overburden covered area with no previous drilling was a direct result of the Company’s 2020 IP survey. The Company believes there is potential to extend the currently Kaukua South IP chargeability anomaly from the currently defined four to over seven kilometres of strike length (Figure 1).

 

Figure 1. Greater Kaukua area plan map, showing current NI 43-101 Kaukua Deposit conceptual pit outline (dashed yellow), Kaukua South and Murtolampi IP chargeability anomalies, and Palladium One drill hole locations. Holes labels in red form part of this release.

 

Figure 2. Kaukua South Long section looking north, holes labelled in red form part of this release

 

Figure 3. Cross Section showing Kaukua South infill holes LK20-027, 028, 045, and 061 looking west.

Table 1: Phase II infill drill results to date on Kaukua South

Hole	Zone	From (m)	To (m)	Width (m)	Pd_Eq g/t*	PGE g/t (Pd+Pt+Au)	Pd g/t	Pt g/t	Au g/t	Cu %	Ni %
LK20-027	Lower Zone	103.4	155.0	51.6	1.98	1.07	0.72	0.27	0.08	0.17	0.15
	Inc.	105.6	113.0	7.4	2.58	1.34	0.90	0.31	0.13	0.26	0.18
	And	149.5	155.0	5.5	3.12	1.96	1.34	0.52	0.10	0.27	0.17
	Inc.	153.5	155.0	1.5	6.14	4.09	2.79	1.15	0.15	0.56	0.28
LK20-028	Lower Zone	42.6	95.5	52.9	2.06	1.44	1.00	0.36	0.08	0.11	0.11
	Inc.	46.9	72.0	25.1	2.92	2.08	1.44	0.52	0.12	0.17	0.14
	Inc.	50.5	60.0	9.5	3.56	2.52	1.75	0.61	0.16	0.23	0.16
LK20-029	Lower Zone	37.5	62.9	25.4	2.57	1.87	1.30	0.46	0.11	0.15	0.11
	Inc.	47.0	62.0	15.0	3.16	2.36	1.65	0.58	0.13	0.17	0.13
	Inc.	56.5	62.0	5.5	4.34	3.36	2.36	0.82	0.18	0.20	0.16
	Inc	56.5	57.7	1.2	6.15	4.97	3.54	1.26	0.17	0.25	0.21
LK20-030	Lower Zone	26.4	86.5	60.1	1.88	1.00	0.68	0.24	0.07	0.17	0.14
	Inc.	47.0	68.0	21.0	2.44	1.43	0.98	0.35	0.10	0.21	0.16
	Inc.	53.0	54.5	1.5	3.94	2.69	1.78	0.78	0.12	0.28	0.20
LK20-031	Lower Zone	17.9	61.5	43.6	1.94	1.12	0.76	0.27	0.09	0.16	0.13
	Inc.	17.9	55.5	37.6	2.17	1.25	0.85	0.30	0.10	0.19	0.14
	Inc.	24.5	35.0	10.5	2.81	1.60	1.09	0.39	0.11	0.27	0.18
LK20-032	Lower Zone	60.3	108.3	48.0	1.81	0.84	0.57	0.21	0.06	0.16	0.16
	Inc.	61.4	75.0	13.7	2.12	0.90	0.58	0.23	0.09	0.22	0.20
LK20-033	Lower Zone	41.3	85.0	43.7	1.76	0.87	0.58	0.21	0.07	0.18	0.14
	Inc.	42.7	56.3	13.7	2.33	1.21	0.83	0.28	0.10	0.21	0.18
LK20-034	Lower Zone	86.9	119.5	32.7	2.05	1.16	0.81	0.26	0.09	0.16	0.15
	Inc.	88.5	97.5	9.0	3.06	1.98	1.41	0.45	0.12	0.20	0.17
	Inc.	94.5	96.0	1.5	4.20	2.94	2.15	0.66	0.14	0.25	0.20
LK20-035	Lower Zone	66.0	118.0	52.0	1.32	0.63	0.44	0.15	0.04	0.11	0.11
	Inc	67.5	69.0	1.5	3.49	2.44	2.10	0.27	0.07	0.23	0.15
	And	95.5	104.7	9.2	2.04	1.23	0.80	0.32	0.11	0.17	0.13
LK20-036	Lower Zone	245.3	280.0	34.6	1.05	0.39	0.25	0.11	0.03	0.10	0.11
	Inc.	259.0	260.5	1.5	1.72	0.86	0.62	0.16	0.07	0.15	0.14
LK20-042	Lower Zone	115.5	158.9	43.4	1.41	0.77	0.53	0.19	0.05	0.09	0.12
	Inc.	118.5	123.0	4.5	2.29	1.23	0.82	0.32	0.09	0.14	0.19
LK20-043	Lower Zone	131.5	162.3	30.8	1.24	0.55	0.36	0.15	0.04	0.11	0.12
	Inc.	133.0	136.0	3.0	2.05	1.16	0.82	0.32	0.02	0.05	0.20
LK20-044	Lower Zone	156.8	173.8	17.0	1.38	0.62	0.41	0.14	0.06	0.14	0.12
	Inc.	166.0	169.5	3.4	2.10	1.07	0.73	0.25	0.08	0.20	0.16
LK20-045	Upper Zone	23.0	86.5	63.5	0.72	0.15	0.09	0.02	0.04	0.07	0.10
	Inc.	23.0	42.1	19.1	0.94	0.22	0.12	0.04	0.06	0.10	0.12
	Lower Zone	122.8	170.2	47.4	2.59	1.74	1.20	0.42	0.11	0.17	0.14
	Inc.	155.0	166.6	11.6	4.21	2.92	2.03	0.72	0.18	0.27	0.20
	Inc.	156.0	160.6	4.6	5.09	3.67	2.57	0.89	0.21	0.33	0.21
LK20-046	Lower Zone	65.9	118.6	52.7	1.53	1.05	0.73	0.26	0.06	0.09	0.08
	Inc.	73.0	89.5	16.5	2.52	1.79	1.23	0.44	0.12	0.13	0.13
	Inc.	73.0	79.0	6.0	3.31	2.42	1.69	0.60	0.12	0.18	0.15
LK20-047	Lower Zone	36.0	58.0	22.0	1.77	1.11	0.75	0.29	0.07	0.12	0.11
	Inc.	40.5	43.5	3.0	3.15	1.85	1.23	0.49	0.13	0.27	0.20
LK20-048	Lower Zone	80.0	93.0	13.0	1.08	0.55	0.35	0.15	0.05	0.09	0.09
	Inc.	89.0	91.3	2.3	1.91	1.13	0.73	0.31	0.09	0.18	0.12
LK20-049	Lower Zone	16.2	27.0	10.8	1.18	0.52	0.33	0.13	0.06	0.13	0.10
	Inc.	23.5	27.0	3.5	1.53	0.87	0.57	0.21	0.09	0.16	0.09
LK21-051	Lower Zone	118.8	145.0	26.2	1.46	0.55	0.36	0.13	0.06	0.16	0.15
	Inc.	133.2	145.0	11.8	1.87	0.77	0.49	0.18	0.10	0.21	0.17
LK21-052	Upper Zone	53.0	62.7	9.7	1.04	0.36	0.22	0.10	0.04	0.09	0.12
	Lower Zone	147.5	172.0	24.5	1.67	0.79	0.55	0.17	0.07	0.18	0.13
	Inc.	147.5	152.0	4.5	2.17	0.91	0.65	0.20	0.06	0.38	0.14
LK21-053	Upper Zone	60.0	63.0	3.0	1.20	0.51	0.33	0.13	0.06	0.11	0.11
	Lower Zone	93.9	101.4	7.5	0.77	0.25	0.15	0.07	0.03	0.05	0.10
LK21-054	Upper Zone	30.0	32.5	2.6	1.82	0.58	0.34	0.08	0.16	0.22	0.19
	Lower Zone	117.7	163.0	45.4	1.58	0.80	0.53	0.19	0.07	0.15	0.12
	Inc.	149.0	158.8	9.8	2.00	1.16	0.78	0.27	0.11	0.20	0.12
	Inc.	157.3	158.8	1.4	4.04	2.41	1.58	0.53	0.31	0.41	0.21
LK21-055	Upper Zone	31.0	45.0	14.0	1.04	0.26	0.15	0.04	0.07	0.13	0.13
	Lower Zone	69.0	81.0	12.0	1.26	0.38	0.23	0.10	0.05	0.14	0.14
	Inc.	76.2	80.0	3.8	1.59	0.55	0.33	0.16	0.06	0.20	0.16
LK21-056	Lower Zone	10.6	14.5	3.9	1.00	0.26	0.17	0.05	0.04	0.14	0.11
LK21-057		no significant values, dyked out
LK21-058	Lower Zone	87.0	101.0	14.0	1.01	0.53	0.32	0.15	0.06	0.09	0.07
	Inc.	90.0	95.0	5.0	1.57	0.88	0.52	0.26	0.10	0.14	0.11
	Inc.	90.0	90.7	0.7	3.10	2.10	1.33	0.64	0.14	0.22	0.16
LK21-059	Upper Zone	29.0	41.7	12.7	1.08	0.27	0.15	0.05	0.08	0.13	0.13
	Inc.	39.5	41.7	2.2	1.74	0.50	0.33	0.07	0.11	0.21	0.20
	Lower Zone	135.3	188.0	52.7	1.50	0.74	0.49	0.18	0.07	0.13	0.12
	Inc.	135.3	169.2	33.9	1.72	0.84	0.55	0.20	0.08	0.17	0.14
	Inc.	165.3	169.2	3.9	1.90	1.17	0.82	0.28	0.07	0.14	0.12
LK21-060	LK21-060	59.0	71.5	12.5	1.27	0.33	0.19	0.05	0.08	0.15	0.16
	Inc.	69.1	70.3	1.2	2.90	1.01	0.75	0.14	0.12	0.24	0.34
	Lower Zone	171.0	215.0	44.0	1.46	0.53	0.35	0.14	0.05	0.15	0.16
	Inc.	203.5	213.5	10.0	1.80	0.68	0.46	0.16	0.06	0.20	0.18
	Inc.	203.5	209.0	5.5	2.04	0.81	0.55	0.20	0.07	0.21	0.20
LK21-061	Upper Zone	92.5	155.5	63.0	0.62	0.14	0.08	0.02	0.03	0.06	0.08
	Inc.	92.5	108.8	16.3	0.77	0.21	0.12	0.05	0.04	0.07	0.10
	Lower Zone	203.2	250.0	46.9	2.32	1.43	0.97	0.34	0.13	0.17	0.14
	Inc.	215.0	221.0	6.0	3.28	1.95	1.33	0.48	0.15	0.24	0.22
	And	227.5	231.4	3.9	3.31	2.39	1.68	0.55	0.16	0.22	0.13
	Inc.	230.7	231.4	0.7	6.02	4.61	3.35	1.10	0.16	0.32	0.22
	And	237.0	239.7	2.7	3.65	2.52	1.76	0.64	0.12	0.25	0.17

 

* Reported widths are “drilled widths” not true widths.
** Orange shaded values previously released (see press release January 18, 2021, March 11, 2021, March 18, 2021)

*Palladium Equivalent

Palladium equivalent is calculated using US$1,100 per ounce for palladium, US$950 per ounce for platinum, US$1,300 per ounce for gold, US$6,614 per tonne for copper, and US$15,432 per tonne for nickel. This calculation is consistent with the calculation in the Company’s September 2019 NI 43-101 Kaukua resource estimate. The palladium price used approximates the US$1,156 per ounce for palladium reported by UBS in its February 2021 commodity consensus price forecast report, while the current price of palladium is approximately US$2,600 per ounce.

QA/QC

The Phase I drilling program was carried out under the supervision of Neil Pettigrew, M.Sc., P. Geo., Vice President of Exploration and a director of the Company.

Drill core samples were split using a rock saw by Company staff, with half retained in the core box and stored indoors in a secure facility, in Taivalkoski, Finland. The drill core samples were transported by courier from the Company’s core handling facility in Taivalkoski, Finland, to ALS Global (“ALS”) laboratory in Outokumpu, Finland. ALS, is an accredited lab and are ISO compliant (ISO 9001:2008, ISO/IEC 17025:2005). PGE analysis was performed using a 30 grams fire assay with an ICP-MS or ICP-AES finish. Multi-element analyses, including copper and nickel were analysed by four acid digestion using 0.25 grams with an ICP-AES finish.

Certified standards, blanks and crushed duplicates are placed in the sample stream at a rate of one QA/QC sample per 10 core samples. Results are analyzed for acceptance at the time of import. All standards associated with the results in this press release were determined to be acceptable within the defined limits of the standard used

Qualified Person

The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo., Vice President of Exploration and a director of the Company and the Qualified Person as defined by National Instrument 43-101.

About Palladium One

Palladium One Mining Inc. is an exploration company targeting district scale, platinum-group-element (PGE)-copper nickel deposits in Finland and Canada. Its flagship project is the Läntinen Koillismaa or LK Project, a palladium dominant platinum group element-copper-nickel project in north-central Finland, ranked by the Fraser Institute as one of the world’s top countries for mineral exploration and development. Exploration at LK is focused on targeting disseminated sulfides along 38 kilometers of favorable basal contact and building on an established NI 43-101 open pit resource.

ON BEHALF OF THE BOARD
“Derrick Weyrauch”
President & CEO, Director

For further information contact: Derrick Weyrauch, President & CEO
Email: info@palladiumoneinc.com

Neither the TSX Venture Exchange nor its Market Regulator (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release includes “forward-looking information” that is subject to a few assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding listing of the Company’s common shares on the TSXV are subject to all of the risks and uncertainties normally incident to such events. Investors are cautioned that any such statements are not guarantees of future events and that actual events or developments may differ materially from those projected in the forward-looking statements. Such forward-looking statements represent management’s best judgment based on information currently available. Factors that could cause the actual results to differ materially from those in forward-looking statements include regulatory actions and general business conditions. Such forward-looking information reflects the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions, including those set out in the Company’s annual information form dated April 29, 2020 and filed under the Company’s profile on SEDAR at www.sedar.com. The Company does not undertake to update forward?looking statements or forward?looking information, except as required by law. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.