Tuesday, April 27, 2021

Newrange Gold (NRGOF)(NRG:CA)
Geophysical Survey Informs Upcoming Drill Program at North Birch

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

Newrange Gold Corp is an exploration stage company focused on acquiring and exploring exploration and evaluation assets in Colombia and the United States. The Company operates in a single reportable operating segment-the acquisition, exploration, and development of mineral properties. Some of the projects acquired by the company are Pamlico gold project in Nevada and Rocky mountain project in Colorado. The company also holds an interest in the Yarumalito property, El Dovio property and Anori property in Colombia.

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.

IP survey informs drilling plans at North Birch. Newrange Gold has completed an induced polarization (IP) survey of the company’s North Birch Project in Ontario, Canada. A total of 73.7 line kilometers were completed, mostly over the eastern portion of the project area covering 7 kilometers of strike length along the main target horizon. The survey revealed several well-defined anomalies to target for the summer drilling program.


North Birch drilling program.  The company is preparing to establish a camp in late May staffed with a field crew for the summer. Mapping and sampling will be conducted across most of the 3,850-hectare property while diamond drilling is anticipated to commence in late June through early July and will consist of approximately 2,500 meters of drilling …

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. 

Aurania Provides Quarterly Update And Hosts Conference Call

 

Toronto, Ontario, April 27, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) is pleased to provide an update of activities, many of which are highlights from the Financial Statements and Management’s Discussion and Analysis for the year ended December 31, 2020.  These reports are available under Aurania’s public filings on SEDAR at www.sedar.com and on the Company’s website.   Aurania’s Chairman and CEO, Dr. Keith Barron and President, Dr. Richard Spencer will be hosting a webcasted quarterly update conference call today to discuss recent developments.  The webcast link and dial-in details for the conference call are listed below.

Conference Call & Webcast Details

April 27^th, 2021 at 12:30pm EDT.

Webcast URL:  Click here to join the webcast.

When prompted, webcast participants enter: First Name, Last Name, Company, Email Address.

Participant Telephone Numbers*

Canada/USA Toll Free: 1-800-319-4610

Toronto Toll: +1-416-915-3239

UK & Europe Toll Free: 0808-101-2791

*Callers should dial in 5 – 10 min prior to the scheduled start time and simply ask to join Aurania’s call.

Scout Drilling:

The Company has two drills operating: one at Kuri-Yawi and the lighter-weight rig at Tsenken N1.

• Tsenken N1 (Sedimentary-hosted copper-silver target): The Company reported in its press release dated April 23, 2021, that native copper had been intersected immediately beneath a lava seal in the sedimentary basin that is being targeted for sediment-hosted copper.  The first drill hole, TSN1-001 was drilled to a depth of 722 metres (“m”).  Results form the first hole have been used to site a second hole that aims to intersect an area in which copper in the metal-bearing fluids circulating in the sedimentary basin are likely to have interacted with sulphur-bearing fluids, resulting in the development of copper sulphide mineralization.  The second drill hole, TSN1-002 is currently at a depth of 200m and is planned to reach a depth of 400m-450m.
• Kuri-Yawi (Epithermal gold-silver and porphyry target): The objective of hole YW-008 at Kuri-Yawi (renamed from “Yawi”), is to explore a MobileMT target that includes a conductive column within a resistive zone – which is what an epithermal gold-silver system may look like, above a conductive cylinder that has the characteristics of a porphyry (a copper target).  The Company has reported on pyrobitumen occurring with pyrite (iron sulphide) and sphalerite (zinc sulphide) in banded carbonate and chalcedony veinlets that have epithermal characteristics.  The current hole is the 8^th, following the 7 scout drilling holes completed in 2020 in the Kuri-Yawi target.  The hole is currently at approximately 950m depth and is planned to 1,200m.

Exploration Highlights

Tiria-Shimpia (Silver-zinc target): More detailed channel sampling and geological mapping has started on the 15 kilometre (“km”) long silver-zinc target, with initial results of the channel-chip sampling having been reported in the press release dated April 12, 2021.  Mineralization has been found where limestone and dolomite are interlayered with sandstone.  To date, seven mineralized layers have been traced along trend for between 500m and 1.1km.

Regional Exploration: Stream sediment sampling and regional exploration has identified new target areas that will be reported on shortly when results are back from the lab.  A new epithermal gold-silver target, called Kuripan, has been identified and a new area of silver-zinc, called Shimpia North, has been discovered.

MobileMT Geophysical Survey

The final report on the heliborne, mobile magnetotelluric (“MobileMT”) geophysical survey has been received from Expert Geophysics Limited with MPX Geophysics as operator.  Five blocks were covered in the MobileMT survey and the Company’s intention is to fly another three blocks later in the year (likely early Q3) when the weather should be clearer, which should improve the efficiency of the data collection.  The MobileMT data are being integrated with other exploration data to refine targets for scout drilling.

Lost Cities

Field teams have discovered a collapsed cavity across one of the silver-zinc veins at Tiria-Shimpia close to the roads that were identified in LiDAR images reported in the press release dated December 15, 2020.  The cavity is suspected to be an old working from Colonial Spanish times.  Due to unstable rock formations, our exploration teams will not try to access the cavity, but they are looking for more of these possible old mine workings.

NI 43-101 Report on Peru Properties

The NI43-101 technical report on the Company’s mineral properties in Peru is nearing completion.  Another five mineral concessions have been granted, bringing the total granted to eleven.

COVID-19 Situation

In 2020, fifteen members of the Company’s complement of forty-four staff (34%) tested positive for COVID-19.  On testing positive, these employees were lodged in an isolated facility for 14 days or for longer, until they tested negative for COVID-19.  A similar conservative quarantine approach was taken with staff who had been exposed to people who later tested positive. This aggressive protocol resulted in 378 lost workdays by staff.  An advantage of this protocol was that, to the Company’s knowledge, it has not transmitted the virus that causes COVID-19 to the local communities in which it operates, or with which is in contact.

In Q1, 2021, the infection rate of staff and contractors fell to zero.  However, since April 1, 2021, four cases have been identified and these staff members have been isolated, resulting in 56 lost workdays.  The first two staff members infected in early-April have recovered and are back at work, while the other two have mild symptoms and are recovering well.  The Company’s strict protocols are being maintained in an attempt to avoid the introduction of new variants of the virus into the workplace and the communities in which the Company operates or is in contact with.

The Toronto office remains closed after all personnel started working remotely as a precaution to mitigate the spread of the COVID-19 virus in mid-March 2020.

Financial, Corporate and Regulatory

During the year-ended December 31, 2020, the Company raised $17.6M net, principally through a non-brokered private placement of units in March, the completion of an overnight marketed public offering in October, as well as through the exercise of warrants and stock options, resulting in the issuance of 5,617,833 shares. The Company also amended the Promissory Note 2017 and Promissory Note 2019 such that the notes become repayable on the day following the one-year anniversary of the lender requesting repayment.

Subsequent to year-end, in April 2021, the Company raised approximately $9M through an overnight marketed public offering and concurrent private placement.

Qualified Person

The technical information contained in this news release has been verified and approved by Jean-Paul Pallier, MSc.  Mr. Pallier is a designated EurGeol by the European Federation of Geologists and is a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

About Aurania

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America.  Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at  https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

For further information, please contact:

Carolyn Muir VP Investor Relations Aurania Resources Ltd. (416) 367-3200 carolyn.muir@aurania.com

Dr. Richard Spencer President Aurania Resources Ltd. (416) 367-3200 richard.spencer@aurania.com

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

Forward-Looking Statements

This news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurania. Forward-looking statements include estimates and statements that describe Aurania’s future plans, objectives or goals, including words to the effect that Aurania or its 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 Aurania, Aurania 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 Aurania’s objectives, goals or future plans, statements, exploration results, potential mineralization, the corporation’s portfolio, treasury, management team and enhanced capital markets profile, the estimation of mineral resources, exploration, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, 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, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, 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, restrictions on labour and international travel and supply chains, and those risks set out in Aurania’s public documents filed on SEDAR. Although Aurania 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. Aurania 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.

Bunker Hill Mining Engages Cutfield Freeman & Co. As Re-Start Financing Advisor

 

TORONTO, April 27, 2021 (GLOBE NEWSWIRE) — Bunker Hill Mining Corp. (the “Company”) (CSE: BNKR) is pleased to announce that it has engaged Cutfield Freeman & Co. (“CF&Co.”) to provide independent advice on all aspects of restart mining finance related to the Bunker Hill Mine in Idaho, USA.

Sam Ash CEO stated, “As a logical next step on the back of our robust restart PEA that envisages $42 million of initial capital expenditures over a 15 month period, we are excited to be partnering with CF&Co., the pre-eminent global mining finance advisory firm, to assist us in evaluating project finance alternatives. We look forward to continuing discussions, and initiating new ones, with interested parties over the coming months concurrent with the completion of ongoing technical studies.”

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 its profile on SEDAR and EDGAR.

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 results of the Company’s Preliminary Economic Assessment (“PEA”); the potential of the Bunker Hill Mine to be re-started rapidly based on the results of the PEA; the PEA representing robust financial returns; estimated capital expenditures and restart timeline; the timing for discussions with interested parties regarding restart financing and the completion of ongoing technical studies; 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 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.

Monday, April 26, 2021

Sierra Metals (SMTS)(SMT:CA)
Trimming Estimates Based on Modestly Lower 2021 Production Expectations

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.

Trimming 2021 production expectations. While Sierra is expected to meet its forecasted production guidance ranges, we now forecast silver, gold, copper, lead, and zinc production of 4.4 million ounces, 11.5 thousand ounces, 45.6 million pounds, 32.7 million pounds, and 105.0 million pounds, respectively. Our estimates are now closer to the midpoints of the company’s guidance for each metal. The company’s operations and ability to develop higher grade ore bodies have been hindered by the pandemic’s impact on Sierra’s work force. Upside to our estimates may depend on the negative impacts of the pandemic abating.


Updating estimates.  We have modestly lowered our 2021 EPS and EBITDA estimates to $0.36 and $166.1 million from $0.38 and $173.1 million, respectively. Our respective first quarter 2021 EPS and EBITDA estimates are $0.05 and $28.4 million. The reduction in our estimates reflects lower full year production and higher costs. Sierra Metals will release first quarter 2021 financial results after the …

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 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

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April 27-29, 2021

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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

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. 

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