en.Wedoany.com Reported - Bunker Hill Mining Corp. (TSX:BNKR | OTCQB:BHLL) announced that the first shipment of concentrate has been dispatched to Teck Resources Limited's lead-zinc smelter in Trail, British Columbia. Produced at Bunker Hill's new processing plant in Kellogg, Idaho, this shipment marks the first sale of concentrate and generation of revenue from the mine since it ceased operations more than 45 years ago.
Sam Ash, President and CEO of Bunker Hill, stated that the team is proud of this milestone, which validates the company's ability to bring one of the oldest mining operations in U.S. history back into production. The company is currently continuing to optimize plant performance through commissioning activities, targeting full commercial production by the end of 2026.
The new processing plant, designed with a capacity of 1,800 tonnes per day, is now in its final commissioning phase. The facility is equipped with modern crushing, grinding, and selective flotation circuits to produce lead and zinc concentrates. A locally recruited operations team is driving the plant toward continuous operation 24 hours a day, seven days a week. The rapid progression from construction to commissioning has been supported by engineering, construction, and commissioning efforts involving Gypsy Life LLC, Ausenco, Mountain West Industrial, Metso Corporation, and several local contractors.
As is typical during the ramp-up phase of a new processing plant, the company expects to continue optimizing performance and implementing routine operational improvements. Concentrate is first assayed by Silver Valley Analytical Inc., then transported approximately 140 miles (220 kilometres) to Teck's smelter in Trail, where it is processed under an off-take arrangement. With Bunker Hill's restart spanning more than four decades since closure, the commencement of concentrate production is a critical step in restoring operations.
The processing plant is located in Kellogg, Idaho, approximately 3.5 miles (5.6 kilometres) from the portal of the Wardner underground mine. Flotation tailings are dewatered using filter presses, with the resulting filter cake used for underground paste backfill or placed in a dry-stack tailings storage facility to reduce water usage and environmental impact. Situated in Idaho's historic Silver Valley mining belt, the plant is one of the largest and most modern processing facilities in the region, with a capacity exceeding that of the nearby Hecla Mining Lucky Friday mine (1,100 tonnes per day) and Americas Gold and Silver Galena mine (500 tonnes per day). The plant includes provisions for expansion, allowing capacity to be increased to approximately 2,500 tonnes per day with modest incremental capital, in line with future mineral reserve development.
Construction of the paste backfill plant at the Wardner mine site is substantially complete, with final commissioning expected within the next three weeks. Once operational, the facility will provide paste backfill for underground mining to support ground stability and improve mining efficiency.
Bunker Hill also announced that it has drawn down $5 million under its standby financing agreement with Teck and its affiliates to support working capital requirements and ongoing operations during the ramp-up period. Sam Ash stated that this drawdown provides additional liquidity at a critical stage of the company's production ramp-up, strengthens the balance sheet, and offers flexibility in executing the operational plan. The standby financing is part of the company's broader financing strategy, designed to provide additional capital support during the early stages of operations, while the company continues to prudently manage liquidity and focus on increasing production, optimizing plant performance, and generating sustainable cash flow.
