Bunker Hill Mining Corp BHLL

Bunker Hill Announces Robust Restart PEA: $101M NPV, 46% IRR

[niceindy]

 

Bunker Hill Announces Robust Restart PEA: $101M NPV, 46% IRR, 2.5 Year Payback, $42M Initial Capex, $20M Average Annual FCF Over 10 Years

Bunker Hill to Host Live Interactive Virtual Event on Wednesday, April 21 @ 11:00am ET / 8:00am PT

HIGHLIGHTS:

• Attractive returns: $101 million NPV, 46% IRR, and 2.5 year payback at $1.15/lb Zn, $0.90/lb Pb, $20.00/oz Ag
• Low-cost, rapid restart based on $42 million initial capital expenditures over a 15-month period
• Robust annual average free cash flow of $20 million and EBITDA of $30 million over a 10-year mine life
• Competitive cost position with all-in sustaining costs of $0.65 per payable pound of zinc, net of by-products
• Low environmental footprint with minimal surface disturbance and long-term water management solution
• Significant positive economic impact for the Shoshone County, Idaho community
• Life of mine zinc equivalent production of 912 million pounds at a zinc equivalent grade of 9.3%, including over 550 million pounds of zinc, 290 million pounds of lead, and 7 million ounces of silver
• Key upsides include ongoing exploration focused on high-grade silver and resource expansion
• Executive Chairman Richard Williams, CEO Sam Ash, and CFO David Wiens to host live interactive 6ix virtual investor event on Wednesday, April 21 ^st at 11:00AM ET / 8:00AM PT to discuss the PEA results and next steps. Investors are invited to register for this event at: LINK

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

	YEARS 1 - 5		YEARS 6 - 10		LIFE OF MINE
Metal prices
Zinc ($/lb)	1.15		1.15		1.15
Lead ($/lb)	0.90		0.90		0.90
Silver ($/oz)	20.00		20.00		20.00
Mine plan
Total mineralized material mined (kt)	2,708		2,651		5,460
Average annual mineralized material mined (kt)	542		530		536
Average zinc grade (%)	6.5	%	4.5	%	5.5	%
Average lead grade (%)	2.2	%	3.7	%	2.9	%
Average silver grade (oz/t)	1.0		2.1		1.5
Average zinc equivalent grade (%) (1)	9.3	%	9.4	%	9.3	%
Total Production over LOM (2)
Zinc produced (klbs)	326,273		218,138		555,977
Lead produced (klbs)	109,701		176,130		290,157
Silver produced (koz)	2,439		4,849		7,401
Zinc equivalent produced (klbs) (1)	454,538		440,315		911,773
Average Annual Production (2)
Zinc produced (klbs)	65,255		43,628		54,441
Lead produced (klbs)	21,940		35,226		28,583
Silver produced (koz)	488		970		729
Zinc equivalent produced (klbs) (1)	90,908		88,063		89,485
Average Unit Costs over LOM
Opex - total ($/t)	83		74		78
Sustaining capex ($/t)	12		16		14
Cash costs ($/lb Zn payable) (3)	0.67		0.10		0.49
AISC: ($/lb Zn payable) (3)	0.78		0.33		0.65
Total Cash Flow over LOM ($'000)
EBITDA (3)	135,071		162,947		298,018
Pre-tax free cash flow (3), ( 4 )	101,435		131,544		232,978
Free cash flow (3), ( 4 )	86,107		110,391		196,498
Average Annual Cash Flow ($'000)
EBITDA (3)	27,014		32,589		29,802
Pre-tax free cash flow (3)	20,287		26,309		23,298
Free cash flow (3)	17,221		22,078		19,650
Financial Returns
After-tax NPV (5%)	100,737
After-tax NPV (8%)	78,355
After-tax IRR (%)	46.2	%
Payback (years)	2.5

 

(1)		Zinc equivalency calculated using metal prices shown above and based on recovery rates of 91% for Pb and 89% for Ag and 92% for Zn.
(2)		Includes zinc produced in zinc concentrate, lead and silver produced in lead concentrate.
(3)		Cash costs and AISC per payable pound of zinc sold, earnings before interest, taxes, depreciation and amortization (“EBITDA”), pre-tax free cash flow and free cash flow are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”.
(4)		Life of mine (“LOM”) includes initial capital expenditures.

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

Zinc Resources	K Tons	Pb%	Ag opt	Zn%
Indicated	4,410	2.00	0.69	5.52
Inferred	4,569	1.67	0.83	5.66
Lead-Silver Resources	K Tons	Pb%	Ag opt	Zn%
Indicated	-	-	-	-
Inferred	1,050	7.56	4.28	1.50
Total Resources	K Tons	Pb%	Ag opt	Zn%
Indicated	4,410	2.00	0.69	5.52
Inferred	5,618	2.77	1.48	4.88

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.

Figure 1 accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/084ff119-aff1-4257-b794-84e97a85b49f

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

(in $‘000)	Initial Capital
Process plant	25,440
Shaft and tunnel rehabilitation	7,380
Development	6,446
Other	4,931
Pre-production revenue (net)	(2,162	)
Total	42,034

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

Year	Pre- Prod		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10			LOM Total
Mineralized material mined (kt)	101		485		559		556		556		553		555		548		548		548		453			5,460
Zinc grade (%)	6.2	%	7.0	%	6.2	%	6.9	%	6.3	%	6.4	%	5.8	%	4.6	%	4.2	%	3.5	%	4.3	%		5.5	%
Lead grade (%)	2.4	%	2.7	%	2.3	%	2.0	%	2.1	%	2.2	%	2.3	%	1.8	%	3.8	%	4.2	%	6.7	%		2.9	%
Silver grade (oz/t)	1.3		0.9		0.7		1.1		1.3		1.2		1.1		1.1		2.2		2.8		3.2			1.5
Zinc eq grade (%) (1)	9.3	%	9.9	%	8.7	%	9.5	%	9.3	%	9.2	%	8.6	%	7.1	%	9.4	%	9.6	%	12.8	%		9.3	%

 

(1)		Zinc equivalency calculated using metal prices shown above and based on recovery rates of 91% for Pb and 89% for Ag and 92% for Zn.
(2)		Mineral resources are not mineral reserves and do not have demonstrated economic viability.

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

Year	Pre- Prod	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9	Year 10		LOM Total
Zinc concentrate (t)	9,971	53,677	55,214	60,510	55,891	55,978	50,683	39,850	36,297	30,167	31,054		479,290
Lead concentrate (t)	3,229	17,578	17,119	15,049	15,725	16,395	17,079	13,519	28,332	31,133	41,377		216,535
Zinc produced (Zn concentrate) (klbs)	11,566	62,265	64,048	70,191	64,833	64,935	58,792	46,226	42,104	34,993	36,022		555,977
Lead produced (Pb concentrate) (klbs)	4,327	23,554	22,940	20,165	21,071	21,970	22,886	18,115	37,965	41,719	55,445		290,157
Silver produced (Pb concentrate) (koz)	113	379	334	522	636	568	526	549	1,080	1,384	1,311		7,401
Zinc equivalent production (klbs) (1)	16,921	87,290	87,808	95,049	92,378	92,013	85,843	69,946	90,595	91,710	102,221		911,773

 

(1)

Zinc equivalency calculated using metal prices shown above and based on recovery rates of 91% for Pb and 89% for Ag and 92% for Zn.

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

Year	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9		Year 10			LOM Total
Mining ($/t)	70	64	62	61	57	61	52	51	50		51			58
Processing ($/t)	15	15	15	15	15	15	15	15	15		15			15
G&A ($/t)	6	6	6	6	6	6	6	6	6		7			6
Opex - total ($/t)	91	84	83	82	78	81	72	72	71		73			78
Sustaining capex ($/t)	14	8	10	9	18	19	15	17	19		9			14
Cash costs ($/lb Zn payable)	0.68	0.75	0.67	0.64	0.61	0.69	0.73	0.14	(0.18	)	(0.60	)		0.49
AISC ($/lb Zn payable)	0.81	0.83	0.76	0.73	0.79	0.90	0.93	0.40	0.17		(0.47	)		0.65

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

Year (1) (in $‘000)	Initial Capex		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10			LOM Total
Zinc revenue			50,286		62,607		68,612		63,374		63,474		57,469		45,186		41,157		34,206		35,212			521,583
Lead revenue			17,065		19,614		17,241		18,016		18,784		19,567		15,489		32,460		35,669		47,406			241,311
Silver revenue			6,014		6,344		9,916		12,076		10,799		9,986		10,426		20,516		26,293		24,917			137,286
Gross revenue			73,365		88,564		95,769		93,467		93,057		87,022		71,100		94,133		96,168		107,534			900,181
Smelter charges and freight			(16,360	)	(19,914	)	(21,014	)	(20,082	)	(20,205	)	(18,906	)	(15,050	)	(18,692	)	(18,147	)	(21,048	)		(189,419	)
Net smelter return			57,006		68,650		74,755		73,385		72,851		68,116		56,050		75,440		78,021		86,486			710,762
Mining costs			(28,048	)	(35,546	)	(34,674	)	(34,057	)	(31,709	)	(33,979	)	(28,424	)	(28,011	)	(27,457	)	(22,981	)		(304,887	)
Processing costs			(5,831	)	(8,132	)	(8,100	)	(8,095	)	(8,052	)	(8,089	)	(7,985	)	(7,985	)	(7,985	)	(6,757	)		(77,011	)
G&A costs			(2,369	)	(3,172	)	(3,171	)	(3,171	)	(3,169	)	(3,171	)	(3,167	)	(3,167	)	(3,167	)	(3,121	)		(30,845	)
EBITDA			20,757		21,800		28,810		28,063		29,922		22,877		16,474		36,277		39,411		53,627			298,018
Sustaining capex			(5,690	)	(4,480	)	(5,736	)	(5,185	)	(9,888	)	(10,631	)	(7,978	)	(9,501	)	(10,252	)	(4,161	)		(73,503	)
Initial capex	(42,034	)																						(42,034	)
Land & salvage value																					8,463			8,463
Pre-tax free cash flow	(42,034	)	15,067		17,321		23,074		22,878		20,034		12,246		8,495		26,775		29,159		57,929			190,944
Taxes	(319	)	(1,351	)	(2,366	)	(4,129	)	(3,818	)	(3,344	)	(1,283	)	(312	)	(5,896	)	(6,074	)	(7,909	)		(36,800	)
Free cash flow	(42,354	)	13,716		14,954		18,945		19,060		16,690		10,964		8,184		20,879		23,085		50,021			154,144
Annual metrics - post initial capex (2)
Gross revenue			98,675		87,973		91,042		96,740		91,548		83,042		76,858		94,642		99,010		80,651			900,181
EBITDA			28,548		21,397		26,116		30,849		28,161		21,276		21,424		37,060		42,965		40,220			298,018
Pre-tax free cash flow			22,649		16,017		21,324		23,357		18,087		11,308		13,065		27,371		36,352		43,447			232,978
Free cash flow			20,707		13,210		17,273		19,658		15,258		10,269		11,358		21,431		29,819		37,516			196,498
NPV (5%)	100,737
NPV (8%)	78,355
IRR (%)	46.2	%
Payback (years)	2.5

 

(1)		Initial capex period is expressed on a 15 month basis; "Year 1" is expressed on a 9 month basis; all other years expressed on a 12 month basis.
(2)		All metrics expressed on a 12 month basis, beginning after the 15 month initial capex period.

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

	Metal Prices								Operating & Capital Costs
NPV (5%) ($M)			Zinc Price ($/lb)								Operating Costs (+/- %)
			0.95	1.05	1.15	1.25	1.35				-20%	-10%	0%	10%	20%
	Lead Price ($/lb)	0.70	10	43	71	98	125		Total Capital Costs (+/- %)	-20%	183	151	120	89	58
		0.80	29	58	86	113	141			-10%	173	142	110	79	48
		0.90	45	73	101	128	156			0	163	132	101	69	38
		1.00	61	88	116	144	172			10%	154	122	91	60	28
		1.10	76	104	131	155	187			20%	144	113	81	50	19
IRR (%)			Zinc Price ($/lb)								Operating Costs (+/- %)
			0.95	1.05	1.15	1.25	1.35				-20%	-10%	0%	10%	20%
	Lead Price ($/lb)	0.70	9%	22%	35%	48%	62%		Total Capital Costs (+/- %)	-20%	94%	79%	63%	47%	32%
		0.80	15%	28%	41%	54%	68%			-10%	82%	68%	54%	40%	25%
		0.90	21%	33%	46 %	60%	73%			0	72%	59%	46 %	33%	20%
		1.00	27%	39%	52%	65%	79%			10%	64%	52%	40%	28%	16%
		1.10	32%	44%	57%	71%	85%			20%	56%	45%	34%	23%	12%