KELLOGG –– Setbacks have delayed the restart of production at Bunker Hill Mine.  

Previously scheduled to restart during the first quarter of 2025, Bunker Hill Mining Corp. President and CEO Sam Ash said the mine would now restart in quarter two. The two driving factors behind the delay were the loss of a specialist contractor and rising costs associated with inflation.  

According to a recent release from Bunker Hill, the cost of skilled construction labor, specifically electricians, has increased by 53% over the last 12 months, from an average of $75/hour to $114/hour. The cost of structural steel has also increased by 40%, copper (a proxy for electrical fittings) by 40% and concrete by 20%. These increases are impacting the mining world, but with Bunker Hill still in several phases of construction and restart, the effects are being felt at the highest level.  

The specialist contractor who left in August had been handling the deep pier construction for one of the mine’s new processing plant’s tailings filter. Finding a replacement company to finish this type of specialized work was challenging. The mine attempted to find an alternative solution to maintain its schedule, but determined finishing the construction was the best course of action.

To combat inflation, Bunker Hill is drawing on a $21 million facility agreement with Sprott Private Resource Streaming and Royalty Corp., while also finalizing agreements with other partners to secure an additional $30 million.  

“This revised plan takes full account of the many challenges facing the project and the rest of the U.S. mining industry,” Ash said. “Work on site continues round the clock at the highest intensity possible to complete mechanical installation and commissioning and deliver the demanding restart plan."

Progress on the mine’s new processing plant sits at 70%, with only mechanical work to be completed. The rehabilitation and preparation work going on underground sits at 80% complete. Access to five mining stopes has already been prepared and they are ready to be mined,

On Dec. 17, the mine announced the discovery of a high-grade zinc zone, which was part of the recently completed underground resource conversion drill program. Zinc is a strategic metal for the United States, as defined by the U.S. Energy Act of 2022 — meaning it is essential to the economic or national security of the United States. 

This is just the latest in what have been many positive exploratory drill programs for the mine, which ultimately suggests the mine life may be greater than originally expected.  

"Our geology team continues to be impressed by the drill results, which consistently meet or exceed our initial projections,” Ash said. “The mineralized intercepts align well with historical mining records, allowing us to confidently model grade distribution and variability."