A strategic review of the project has led to an increase in total restart expenditure to $103m (C$146.67m). Credit: Bunker Hill Mining Corp.

Bunker Hill Mining has announced an updated forecast for the restart of the Bunker Hill Mine in Idaho, US, which is now 64% complete with 98% of procurement finished.

The strategic review has led to an increase in total restart expenditure to $103m, up from the initial $67m and the $56m outlined in the 2022 Pre-Feasibility Study (PFS).

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Consequently, the project is expected to face a delay of up to four months, with revised start-up set for Q2 2025.

To finance the ongoing development, the company plans to draw down on a $21m standby facility provided by Sprott Private Resource Streaming and Royalty and finalise discussions for an additional $30m in potential offtake or similar financing.

Bunker Hill Mining President and CEO Sam Ash said: “This revised plan takes full account of the many challenges facing the project and the rest of the US mining industry. Work onsite continues round the clock at the highest intensity possible to complete mechanical installation and commissioning and deliver the demanding restart plan.

“The adjustment we are announcing reflects the outcome of weeks of intense work by the small Bunker team, Gypsy LLC, our procurement, construction and management contractor and their many supporters to counter the worst effects of inflation, scope changes since the PFS and an unplanned contractor change.

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“We are pleased to be able to draw upon the Standby Facility and conclude offtake and associated financing discussions to ensure that profitable and sustainable operations may commence by the revised start date of Q2 2025.”

The company’s strategic review over the past eight weeks has focused on mitigating the impact of input cost inflation, which has significantly affected skilled construction labour, steel, copper and concrete costs.

The decision to upgrade the tailings management system to a more effective and expensive filter press has also contributed to the increased forecast, with final costs rising from $10m to $18m.

Additionally, the unexpected walk-out of a specialist contractor in August 2024 has caused delays in the construction timeline.

The revised forecast also includes optimisation efforts to ensure a sustainable and profitable restart operation and incorporates additional drilling and technical work into the plan.