Bunker Hill Mining Corp. ships first concentrate in Idaho after 45 years

KELLOGG―Bunker Hill Mining Corp. has shipped its first batch of mineral concentrate from its newly commissioned processing plant in Kellogg, marking the first revenue-generating production from the historic Silver Valley mine since it ceased operations more than four decades ago.

The concentrate was shipped to Teck Resources‘ lead and zinc smelting complex in Trail, British Columbia, roughly 140 miles away, under an existing offtake agreement. Before shipment, the material was analyzed by Silver Valley Analytical Inc.

“This represents a defining milestone in the company’s redevelopment and validates the dedication of our team in safely bringing one of America’s most historic mining operations back into production,” said Sam Ash, president and CEO of Bunker Hill Mining. “While we continue to optimize plant performance through commissioning, we remain focused on achieving full commercial production by year-end.”

The Kellogg processing plant, designed to handle 1,800 tons per day, is located about 3.5 miles from the underground mine portal at Wardner. The facility uses crushing, grinding and differential flotation circuits to produce separate lead and zinc concentrates. Its capacity exceeds nearby Silver Valley operations, including Hecla Mining’s Lucky Friday Mine at 1,100 tons per day and Americas Gold and Silver’s Galena Mine at 500 tons per day.

The plant was built with expansion in mind and can be scaled to approximately 2,500 tons per day with relatively modest additional capital investment.

Flotation tailings are processed through a filter press, with the resulting material used as underground paste backfill or stored in a dry-stack tailings facility ― an approach the company said reduces water consumption and minimizes environmental impact. Construction of the paste backfill plant at the Wardner mine site is substantially complete, with commissioning expected within three weeks.

Bunker Hill also announced it has drawn $5 million from a standby credit facility provided by Teck to support working capital and ongoing operations during the production ramp-up.

“With the processing plant operating, concentrate shipments underway and production continuing to increase, this facility strengthens our balance sheet and provides additional flexibility as we execute our operating plan,” Ash said in a company press release.

The company is targeting full commercial production by the end of 2026. The Bunker Hill Mine, located in Idaho’s 25-mile-long Silver Valley, is one of the most historically significant mining operations in North America and had been closed and undergoing rehabilitation for more than 45 years before the current redevelopment effort.

This story was written using artificial intelligence with human oversight.