Hercules Silver Corp. (“Hercules Silver” or the “Company”) (TSX-V: BIG) (OTCQB: BADEF) (FWB: 8Q7) today announced completion of the previously announced non-brokered private placement (the “Placement”), resulting in Barrick Gold Corporation (“Barrick”) subscribing for 21,265,370 units of Hercules Silver (the “Units”) at a price of C$1.10 per Unit for gross proceeds to Hercules Silver of C$23,391,907. The Placement represents a significant step towards the equity requirements to fund the Hercules Project and a strategic investment by Barrick in Hercules Silver.
Each Unit consisted of one common share of Hercules (each, a “Hercules Share”) and 0.32 of a common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant has a term of two years and entitles the holder thereof to purchase one Hercules Share for a price of C$1.32 per Hercules Share.
With the closing of the Placement, Barrick now owns 12.33% of the issued and outstanding Hercules Shares on a non-diluted post-transaction basis and 15.02% of the outstanding Hercules Shares on a partially-diluted post-transaction basis, assuming exercise of all Warrants.
The proceeds from the Placement will be used by Hercules Silver to explore the Company’s Hercules Project located in western Idaho.
All securities issued in connection with the Placement are subject to a four-month-and-one-day statutory hold period expiring March 8, 2024 in accordance with applicable securities laws.
In connection with the Placement, Hercules Silver and Barrick also entered into an investor rights agreement, whereby, among other things, Barrick was granted certain participation rights, top-up rights, information rights and rights of first refusal, all as more particularly described in the Company’s news release dated November 6, 2023.
Advisors
Gowling WLG (Canada) LLP acted as Canadian legal counsel to Hercules Silver and Davies Ward Phillips & Vineberg LLP acted as Canadian legal counsel to Barrick.
About Hercules Silver Corp.
Hercules Silver Corp. is a junior mining company focused on the exploration and development of the 100% owned Hercules Silver Project, northwest of Cambridge, Idaho.
The Hercules project is a disseminated silver-lead-zinc system with 28,000 meters of historical drilling across 3.5 kilometers of strike. The additional discovery of a new porphyry copper system at depth in 2023 adds significant upside potential to the Property. The Company is well positioned for growth through the drill bit, having completed extensive surface exploration consisting of soil & rock sampling, geological mapping, IP geophysics.
The Company’s management team brings significant exploration experience through the discovery and development of numerous precious metals projects worldwide.
About Barrick Gold
Barrick is a senior gold mining company organized under the laws of the Province of British Columbia. Barrick’s corporate office is located at Brookfield Place, TD Canada Trust Tower, Suite 3700, 161 Bay Street, P.O. Box 212, Toronto, Ontario M5J 2S1.
The securities issued pursuant to the Placement have not and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws of an exemption from such registration is available. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.
Disclaimer for Forward-Looking Information
This news release contains certain information that may be deemed “forward-looking information” with respect to the Company within the meaning of applicable securities laws. Such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information includes statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. Forward-looking information in this press release include, without limitation, obtaining final approval of the TSX Venture Exchange; and the risks and uncertainties related to the use of proceeds of the Placement.
Although the Company believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by its nature, forward-looking information involves assumptions and known and unknown risks, uncertainties and other factors which may cause our actual results, level of activity, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; the Covid-19 pandemic; adverse industry events; the receipt of required regulatory approvals and the timing of such approvals; that the Company maintains good relationships with the communities in which it operates or proposes to operate, future legislative and regulatory developments in the mining sector; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and generally; the ability of the Company to implement its business strategies; competition; the risk that any of the assumptions prove not to be valid or reliable, which could result in delays, or cessation in planned work, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company’s expectations, as well as other assumptions risks and uncertainties applicable to mineral exploration and development activities and to the Company, including as set forth in the Company’s public disclosure documents filed on the SEDAR website at www.sedar.com.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF HERCULES SILVER AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE HERCULES SILVER MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Hercules Silver Corp. (“Hercules Silver” or the “Company”) (TSX-V: BIG) (OTCQB: BADEF) (FWB: 8Q7) today announced that it has entered into an agreement with Barrick Gold Corporation (“Barrick”) whereby Barrick has agreed to purchase 21,265,370 units of Hercules Silver (the “Units”) in a non-brokered private placement (the “Placement”) at a price of C$1.10 per Unit for gross proceeds of C$23,391,907. Each Unit consists of one common share of Hercules (each a “Hercules Share”) and 0.32 of a common share purchase warrant (each a “Warrant”). Each Warrant will have a term of two years and each whole Warrant will entitle the holder thereof to purchase one Hercules Share for a price of C$1.32 per Hercules Share.
The Placement will result in Barrick owning 12.33% of the issued and outstanding Hercules Shares on a non-diluted post-transaction basis and 15.02% of the outstanding Hercules Shares on a partially-diluted post-transaction basis, assuming exercise of all Warrants.
The proceeds from the Placement will be used by Hercules Silver to explore the Company’s Hercules property (the “Hercules Property”) located in western Idaho.
Closing of the Placement will occur on or before November 8, 2023 or such other date as may be agreed by Barrick and Hercules, subject in each case to customary closing conditions, including receipt of all necessary approvals, including the approval of the TSX Venture Exchange. All securities issued in connection with the Placement will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
“We’re very pleased with Barrick’s strategic investment into the Company and the support and validation it brings to the Hercules Property. We also look forward to leveraging Barrick’s US experience and technical expertise in the continued drilling and advancement of our exciting new porphyry copper discovery.” said Chris Paul, Chief Executive Officer of the Company. Transaction Details
In connection with the Placement, Hercules Silver and Barrick will also enter into an investor rights agreement (the “Investor Rights Agreement”), whereby so long as Barrick maintains a minimum of 5% ownership in Hercules Silver, Barrick will be granted:
A right to participate in future Hercules Silver equity issuances to maintain its then current pro rata interest in Hercules Silver;
Certain top-up rights triggered on a rolling basis to permit it to maintain its ownership interest in Hercules Silver in connection with dilutive events that are not otherwise subject to Barrick’s pre-emptive rights;
A right of first refusal over the sale or transfer of any interest in the Hercules Property; and
Information rights to data in respect of the Hercules Property and rights to visit and inspect the Hercules Property.
Pursuant to the Investor Rights Agreement, Barrick will also, (i) for a period of three years either vote its Hercules Shares in accordance with the recommendations of the board or management of Hercules, or abstain from voting on such matters; and (ii) be subject to a three year standstill whereby it is prohibited from acquiring more than 19.9% of the issued and outstanding Hercules Shares, in each case subject to certain exceptions. Barrick will also provide Hercules Silver with technical support and expertise for the 2024 season.
Advisors
Gowling WLG (Canada) LLP acted as Canadian legal counsel to Hercules Silver and Davies Ward Phillips & Vineberg LLP acted as Canadian legal counsel to Barrick.
About Hercules Silver Corp.
Hercules Silver Corp. is a junior mining company focused on the exploration and development of the 100% owned Hercules Silver Project, northwest of Cambridge, Idaho.
The Hercules project is a disseminated silver-lead-zinc system with 28,000 meters of historical drilling across 3.5 kilometers of strike. The additional discovery of a new porphyry copper system at depth in 2023 adds significant upside potential to the Property. The Company is well positioned for growth through the drill bit, having completed extensive surface exploration consisting of soil & rock sampling, geological mapping, IP geophysics.
The Company’s management team brings significant exploration experience through the discovery and development of numerous precious metals projects worldwide.
About Barrick Gold
Barrick is a senior gold mining company organized under the laws of the Province of British Columbia. Barrick’s corporate office is located at Brookfield Place, TD Canada Trust Tower, Suite 3700, 161 Bay Street, P.O. Box 212, Toronto, Ontario M5J 2S1.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. Any securities referred to herein have not and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws of an exemption from such registration is available.
Disclaimer for Forward-Looking Information
This news release contains certain information that may be deemed “forward-looking information” with respect to the Company within the meaning of applicable securities laws. Such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information includes statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. Forward-looking information in this press release include, without limitation, the closing of the Placement, obtaining final approval of the TSX Venture Exchange; and the risks and uncertainties related to the use of proceeds of the Placement.
Although the Company believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by its nature, forward-looking information involves assumptions and known and unknown risks, uncertainties and other factors which may cause our actual results, level of activity, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; the Covid-19 pandemic; adverse industry events; the receipt of required regulatory approvals and the timing of such approvals; that the Company maintains good relationships with the communities in which it operates or proposes to operate, future legislative and regulatory developments in the mining sector; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and generally; the ability of the Company to implement its business strategies; competition; the risk that any of the assumptions prove not to be valid or reliable, which could result in delays, or cessation in planned work, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company’s expectations, as well as other assumptions risks and uncertainties applicable to mineral exploration and development activities and to the Company, including as set forth in the Company’s public disclosure documents filed on the SEDAR website at www.sedar.com.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF HERCULES SILVER AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE HERCULES SILVER MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Hercules Silver Corp. (“Hercules Silver” or the “Company”) (TSX-V: BIG) (OTCQB: BADEF) (FWB: 8Q7) continues to wait on assays for the next deep drill hole (HER-23-08), and in the interim, is pleased to report silver-lead-zinc results from the next two shallow drill holes in sequence, HER-23-06 and HER-23-07, which were drilled above the recently-announced porphyry copper discovery at its Hercules Silver Property located in western Idaho (“Hercules” or the “Property”). These results continue to showcase strong silver mineralization, bolstered by critical metals credits in the near surface, which overlie the blind porphyry copper system at depth.
Accounting for the lower-grade silver (3-30 g/t Ag) that surrounds the headline intercepts, drill hole HER-23-06 returned 96.3 g/t Ag, 0.26 % Zn and 3.9% Mn, occuring as carbonate, over the entire 58.83 m length of the hole, and HER-23-07 returned 80.8 g/t Ag, 0.30% Zn, and 1.9% Mn over the entire 105.46 m length of the hole.
The Company’s ongoing 6,000-meter drill program was initially designed to confirm and expand upon near-surface silver mineralization, in addition to testing a blind IP-chargeability anomaly below the limit of historical drilling. The latter has resulted in the discovery of a major blind copper porphyry system in the first ever deep drill hole on the Property, HER-23-05, which intersected 185 m grading 0.84% Cu, 111 ppm Mo and 2.6 g/t Ag. For more details about this discovery hole, see our press release dated October 10, 2023 at www.herculessilver.com.
The Company is also pleased to announce it has received preliminary 3D point cloud data from Dias Geophysical on its ongoing 4km by 4km super IP survey, designed to cover a >3,000-acre target area, to more than twice the depth of the 2022 survey. Only the raw data has been received to date, which has not yet undergone 3D inversion modelling, but early signs show encouragement for expanding the 2022 anomaly.
The field work is almost complete, following which the Company anticipates approximately six weeks for processing of the large 3D dataset, meaning final 3D inversions will likely be available for release around Christmas of this year.
HER-23-06 and HER-23-07 were drilled topographically above the recently-reported porphyry copper intercept in HER-23-05, demonstrating significant silver-lead-zinc-manganese carbonate mineralization in the near-surface environment.
Low-grade silver (3-30 g/t Ag) surrounds the headline intercepts, demonstrating the potential for a large bulk tonnage target above the recent porphyry copper discovery.
1.5m-long composite channel samples returned grades of up to 500 g/t Ag from bedrock exposed by drill pad construction.
Preliminary 2023 IP data is beginning to outline anomalous chargeability extending from the 2022 survey.
Chris Paul, CEO and Director of the Company, noted: “We are pleased that near-surface drilling at the Frogpond Zone continues to demonstrate favorable silver grades above our recently announced porphyry copper discovery in HER-23-05. What began as a primary drilling target for this season has now evolved into just the upper levels of a much larger system, and the presence of critical minerals adds further encouragement from a permitting standpoint in the US. We are excited by the preliminary IP results and look forward to receiving the final 3D inversion models around Christmas of this year.”
Silver Mineralization at Frogpond
Shallow drilling at the Frogpond Zone in 2023 has been directed towards expanding historical silver mineralization along an interpreted northwest-southeast trend in the near-surface environment. Extensive shattering along both steep shear zones and low-angle thrust faults appears to have created the structural pathways along which the mineralization was focused.
Table 1: Significant Drill Intercepts (>30 g/t Ag cut-off)
Hole ID
From (m)
To (m)
Interval (m)
Ag (g/t)
Pb (%)
Zn (%)
Cu (%)
Mn (%)
Sb (ppm)
HER-23-06
2.44
27.58
25.14
195.2
0.21
0.33
0.24
5.9
302
including
18.59
27.58
8.99
305.0
0.25
0.42
0.20
5.8
295
AND
38.71
41.15
2.44
122.5
0.37
0.18
0.06
6.2
116
HER-23-07
34.81
76.66
41.85
138.7
0.13
0.48
0.09
3.3
145
including
42.12
46.85
4.73
423.0
0.20
0.33
0.12
4.2
268
including
53.04
54.86
1.82
493.8
0.16
0.43
0.24
6.8
575
AND
25.6
28.96
3.36
116.8
0.05
0.19
0.04
1.8
25
AND
96.01
97.84
1.83
919.7
0.01
0.27
0.25
0.2
632
Table 2: Ag-Zn-Mn Grades Over Complete Drill Lengths (>3 g/t Ag cut-off)
Hole ID
From (m)
To (m)
Interval (m)
Ag (g/t)
Zn (%)
Mn (%)
HER-23-06
0
58.83
58.83
96.3
0.26
3.9
HER-23-07
0
105.46
105.46
80.8
0.30
1.9
Table 3: 2023 Drill Hole Locations
Hole ID
Easting
Northing
Depth (m)
Azimuth
Dip
Hole type
HER-23-06
511265
4956663
58.83
30.26
-60
Core
HER-23-07
511256
4956646
105.46
31.03
-60.27
Core
Critical Minerals
A potential critical minerals component is emerging within the near-surface silver environment, made possible through the implementation of modern multi-element analyses which were not performed historically. Zinc, manganese and antimony are included in the USGS’ “List of Critical Minerals” and occur in conjunction with the silver mineralization at Hercules. Importantly, the manganese is prevalent in carbonate form as rhodochrosite and manganiferous calcite, which is potentially attractive both from a metallurgical standpoint, and for its suitability in battery metals processing. While it is too early to ascertain the potential significance of these metals within the system as a whole, their presence is positive from a future permitting standpoint. Projects in the United States which can demonstrate a critical minerals component tend to be viewed favorably by political and regulatory regimes, as the country moves towards securing a robust and secure domestic supply.
Figure 1: Plan view highlighting the results of 2022-2023 drilling and channel samples taken at the Frogpond Zone. Callouts shown for reported drill holes HER-23-06 and HER-23-07.
Silver equivalent (AgEq) grades reported in previous holes are calculated using metal price assumptions of: silver US$23.50/oz., copper US$4.00/lb, lead US$1.00/lb and zinc US$1.50/lb. Silver equivalent grade is calculated as AgEq (g/t) = Ag (g/t) x Ag rec. + (Cu (%) x Cu rec. x 118.558) + (Pb (%) x Pb rec. x 28.568) + (Zn (%) x Zn rec. x 42.852). Metallurgical recoveries assumed are 93% for silver, 80% for lead and 79% for zinc, based on historical sulfide floatation tests by Britton, 1977. A reasonable assumption of 80% recovery is applied for copper based on comparable base metal recovery values.
Figure 2: Cross-section view of drill holes HER-23-05, -06, -07 at the Frogpond Zone showing significant near-surface silver intercepts relative to the recently announced porphyry copper intercept at depth.
Surface Sampling
Bedrock exposed during drill pad construction for HER-23-06 was found to contain significant silver mineralization, as determined by a portable pXRF analyzer. The Company elected to channel sample the exposed bedrock along the perimeter of the pad at 1.5-meter intervals (Figure 3) to gain additional information on the 3D geometry of the silver mineralization. The analytical results, which are presented in Table 3 and illustrated on Figure 1, support the interpreted northwest-southeast trend to the mineralization. Of the 10 samples taken, 5 graded upwards of 100 g/t Ag, up to a maximum of 500 g/t Ag (Table 4).
Figure 3: Yellow dashed line indicating bedrock channel – sampled at 1.5m long composite intervals (photo looking northeast, sample bags are 18” x 24” for scale).
Figure 4: Plan view of all holes drilled to date during the 2023 Phase II drill Program at Hercules
Sample Analysis and QAQC
All drill core and rock samples were prepped and analyzed at MSA Labs in Langley, British Columbia, an ISO 17025 and ISO 9001 certified laboratory. Samples were dried and crushed to 2mm, from which a 250g sub-sample split was then pulverized to 85% passing a 75 micron sieve. Following preparation, assays were determined by the IMS-230 method. A 0.25g aliquot of the prepared pulp was digested in a 4-acid solution consisting of hydrochloric, nitric, perchloric and hydrofluoric acids. 4-acid is a near total digest and only the most highly resistant minerals are not dissolved. The resulting solution was analyzed via ICP-MS and ICP-ES for 48 elements and was corrected for inter-element spectral interferences. Lower detection limits for this procedure are 0.01 ppm for silver, 0.5 ppm for lead, 2 ppm for zinc, and 0.2 ppm for copper. Mercury is not reported due to volatilization in reaction with hydrofluoric acid and gold is not reported due to the small, 0.25g aliquot size being insufficient to overcome the nugget effect.
Samples with initial results beyond the upper detection limit of the IMS-230 method were analyzed by procedures ICF—6Ag, ICF-6Pb and ICF-6Zn. The thresholds were 100 ppm for silver, and >1% for lead and zinc. Preliminary silver assays that returned values >1000 ppm were determined by fire assay with a 50g charge for the final result.
MSA Labs employs internal quality control standards, duplicates and blank samples at set frequencies.
Blind certified reference materials (CRMs) and blank samples were systematically inserted by the Company into the sample stream and analyzed as part of the Company’s quality assurance/quality control protocol.
Qualified Person
The scientific and technical information in this news release has been reviewed and approved for disclosure by Christopher Longton BS, CPG, Hercules’ Vice President, Exploration. Mr. Longton is a “Qualified Person” for Hercules Silver within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
Amendment to Previously Announced Mineral Property Agreement
The Company also announces that further to its press release dated September 29, 2023, it has entered into an amended and restated lease option agreement (the “Amended Agreement”) between the Company, Anglo-Bomarc, U.S., Inc., a wholly owned subsidiary of the Company (the “Lessee”) and local prospector Merrill Palmer (the “Lessor”), dated effective September 27, 2023 replacing and superseding the lease option agreement (the “Original Agreement”) relating to the Mineral property, comprising eighty-seven (87) unpatented lode mining claims within the Mineral mining district (the “Mineral Property“) between the Company, Anglo-Bomarc, U.S., Inc., a wholly owned subsidiary of the Company (the “Lessee”) and local prospector Merrill Palmer (the “Lessor”), also dated September 27, 2023.
The parties entered into the Amended Agreement to provide for a floor price for common shares of the Company (the “Common Shares”) that are being issued as lease payments and as purchase price for the Mineral Property under the Amended Agreement (each, a “Consideration Share”). Pursuant to the Amended Agreement, the Consideration Shares are now being issued at a deemed price per Consideration Share equal to the 10-day VWAP of the Common Shares on the TSX Venture Exchange on the day preceding the anniversary of the effective date of this Agreement, subject to a minimum deemed price of Cdn$0.23 per Consideration Share. Furthermore, as a result of the Amended Agreement, if the Lessee elects not to exercise the option to purchase the Mineral Property and elects to continue to lease the Mineral Property, all annual lease payments shall be made in cash.
The Amended Agreement remains subject to approval by the TSXV.
About Hercules Silver Corp.
Hercules Silver Corp. is a junior mining company focused on the exploration and development of the 100% owned Hercules Silver Project, northwest of Cambridge, Idaho.
The Hercules project is a disseminated silver-lead-zinc system with 28,000 meters of historical drilling across 3.5 kilometers of strike. The additional discovery of a new porphyry copper system at depth in 2023 adds significant upside potential to the Property. The Company is well positioned for growth through the drill bit, having completed extensive surface exploration consisting of soil & rock sampling, geological mapping, IP geophysics.
The Company’s management team brings significant exploration experience through the discovery and development of numerous precious metals projects worldwide.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. Any securities referred to herein have not and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws of an exemption from such registration is available.
Disclaimer for Forward-Looking Information
This news release contains certain information that may be deemed “forward-looking information” with respect to the Company within the meaning of applicable securities laws. Such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information includes statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. Forward-looking information contained in this press release may include, without limitation, the expected results of the 3D modeling of its IP survey; significance of presence of critical metals at the Property; exploration plans and expected exploration and drilling results at the Property, results of operations, the required regulatory approvals and the expected financial performance of the Company; the expectation that the Company will fulfil its obligations under the Amended Agreement and make the required payments.
Although the Company believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by its nature, forward-looking information involves assumptions and known and unknown risks, uncertainties and other factors which may cause our actual results, level of activity, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; the Covid-19 pandemic; adverse industry events; the receipt of required regulatory approvals and the timing of such approvals; that the Company maintains good relationships with the communities in which it operates or proposes to operate, future legislative and regulatory developments in the mining sector; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and generally; the ability of the Company to implement its business strategies; competition; the risk that any of the assumptions prove not to be valid or reliable, which could result in delays, or cessation in planned work, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company’s expectations, as well as other assumptions risks and uncertainties applicable to mineral exploration and development activities and to the Company, including as set forth in the Company’s public disclosure documents filed on the SEDAR website at www.sedar.com.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF HERCULES SILVER AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE HERCULES SILVER MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Hercules Silver Corp. (“Hercules Silver” or the “Company”) (TSX-V: BIG) (OTCQB: BADEF) (FWB: 8Q7) is very pleased to confirm a major new copper porphyry discovery at its Hercules Property located in western Idaho (“Hercules” or the “Property”).
HER-23-05, the first hole to test a large-scale (>1.8km) blind chargeability anomaly, intersected 185.29m of 0.84% Cu and 111 ppm Mo from 246m to 431.2m, including 45.33m of 1.94% Cu. The hole ended prematurely due to drilling challenges encountered at a post-mineral dyke, however observations in subsequent holes indicate that the mineralization likely extends significantly below HER-23-05 at 435 meters.
The newly discovered porphyry system is situated below rhyolite-hosted silver mineralization defined by over 300 historical drill holes. The system is therefore completely blind and open in all directions from HER-23-05. A follow-up 3D IP survey is currently underway to expand the chargeability anomaly in all directions and help track the system with further drilling.
Additional step-out holes drilled at various orientations to the southeast of HER-23-05, where chargeability data is currently available, have intersected similar alteration, veining and copper mineralization over variable lengths. Many directions remain to be tested, and the potassic center, which often carries the highest grades within porphyry systems, remains to be found. Assay results will be released for step-out holes as they are received. Core photographs for the intercept reported in this release have been posted to the Company’s website at the following link:
Blind copper porphyry discovered in first deep drill hole grading 0.84% Cu, 111 ppm Mo, 2.6 g/t Ag over 185m, including 45m of 1.94% Cu.
Hole ended prematurely in mineralization due to drilling challenges. Step-out drilling indicates system extends considerably deeper.
Mineralization open in all directions from discovery hole.
Additional 3D IP geophysics underway to establish limits of the system and guide further drilling.
Assays pending for additional step-out drill holes.
Chris Paul, CEO and Director of the Company, noted: “We are incredibly pleased with the grades returned from our first blind drill hole into this new discovery. It has significantly exceeded our expectations, considering phyllic alteration typically occurs outside of the grade shell in porphyry copper systems. The strength of the alteration, veining and mineralization in HER-23-05 and subsequent step-out holes however is demonstrating the presence of a very large system which remains open in all directions.
HER-23-05 also represents the first significant porphyry copper system discovered in the state of Idaho, which breaks the discovery gap between BC and Nevada, presenting an entirely new district for porphyry exploration in a tier 1 jurisdiction.
The Triassic-Jurassic island arc geology of the Hercules Copper Belt is reminiscent of British Columbia’s famous Golden Triangle, where some of the world’s largest porphyry copper systems have been discovered. The Hercules Copper Belt, however, is accessible year-round, with excellent infrastructure and a supportive, pro mining state government.”
Figure 1: Plan view of discovery hole HER-23-05, collared in the Frogpond Zone showing grade bars for copper (orange) and molybdenum (blue).
Figure 2: HER-23-05 cross-section with interpreted geology, grade bars for copper (orange), molybdenum (blue), and silver (grey).
Figure 3: Copper in soil and rock samples, IP chargeability, 2023 deep drill holes completed.
Blind Porphyry Copper System
Field work completed by the Company in 2022 previously demonstrated the potential for a porphyry copper feeder system on the east side of the Property, within the Seven Devils Group volcanics. However, due to logistical constraints, a shallow IP geophysical survey was only run over silver mineralization on the west side of the Property in 2022. Regardless, the deeper parts of the survey showed a strong chargeability anomaly below the silver mineralization on the west side of the Property.
HER-23-05 was the first drill hole to test this new chargeability target, and unexpectedly encountered the Seven Devils Group volcanics, but accompanied by stronger porphyry-style alteration, veining, and mineralization than was observed at surface on the east side of the Property. The mineralization in HER-23-05 extends well below the limit of the 2022 survey data. Subsequent holes, for which assays remain pending, have now intersected similar alteration, veining and mineralization below the silver mineralization in other places. The 2022 IP survey was designed with tight node spacing, to focus on shallow silver mineralization; however, a 2023 survey is now underway, employing a much larger node spacing to more effectively target this newly discovered porphyry system at depth.
On surface, a shallow west-dipping thrust fault (shown in red on Figure 3), separates copper-gold-molybdenum bearing Seven Devils volcanics (the “Lower Plate”) to the east from the silver-lead-zinc-manganese bearing Hercules Rhyolite (the “Upper Plate”), to the west. East of this thrust, several known copper-gold targets, including the Big Cut Skarn, Lightning Breccia, and Metheny Zones are exposed at surface, and remain to be tested. West of the thrust, 2023 drilling has now demonstrated that the copper porphyry system dips shallowly below the silver mineralization at moderate depths of just 100m-300m.
HER-23-05 Geological Description
HER-23-05 intersected silver-lead-zinc-manganese mineralization at surface and was continued to depth to test the blind chargeability anomaly. At approximately 197 meters (645 feet) depth, a strongly hematized (oxidized) “red conglomerate” unit was intersected, which is interpreted to mark the base of the Jurassic volcanics. The conglomerate also marks the top of the porphyry system, below which strongly silicified andesite and quartz porphyry intrusions contain abundant quartz-hematite veining. Hematite is a common oxidation/weathering product, suggesting the conglomerate may represent an ancient (paleo) erosional surface, on which the silver system was subsequently thrust over. Molybdenum mineralization (soluble in high pH) begins immediately below the red conglomerate; however, copper appears to have been leached by acidic (low pH) solutions within the hematized/weathered zone (Figure 2).
Strong bornite-chalcopyrite mineralization then begins at 246 meters (807 feet), immediately below the leached/hematized zone, extending over a 45-meter drilled length of enrichment. Studies are currently underway to better understand the mechanism of enrichment/remobilization, however it appears to be significant, as the same pattern has now been observed in four deep drill holes.
Below the enriched zone, mineralization transitions to a typical pyrite-chalcopyrite (phyllic) assemblage, which extends to the bottom of the hole, where the post-mineral dyke was encountered, and at which point drilling challenges caused the hole to end prematurely. The same phase of post-mineral dyke has now been intersected in two other deep drill holes, where it only shows several meters of drilled length. It is likely the post-mineral dyke at the end of HER-23-05 has a similar thickness and was meters away from being back in strong mineralization.
Alteration observed in HER-23-05 and other deep holes consists of quartz-sericite-pyrite (phyllic alteration) with abundant porphyry-style A, B, and D-type veining. Phyllic alteration manifests as an outer shell of highly chargeable pyrite (+/- chalcopyrite) mineralization, that often surrounds an inner shell of chalcopyrite (+/- bornite) mineralization with lesser pyrite. The inner shell is often accompanied by high temperature potassic alteration, characterized by biotite and k-feldspar. Figure 3 illustrates the many directions and broad search area that remain to be tested for the potentially higher-grade potassic core as well as further extensions of the system. HER-23-05 and this news release represent just the first blind test of the porphyry system at depth.
2023 3D IP Survey
Surveying is currently underway, to expand the 2022 survey, which measures approximately 2,200m by 650m, to a significantly larger area of approximately 4.2 km by 3.6 km. It is anticipated that the 2023 survey will better define and likely extend the 2022 chargeability anomaly, indicate the trend of the system, and provide up to 3x deeper data.
Sample Analysis and QAQC
All drill core samples were prepped and analyzed at MSA Labs in Langley, British Columbia, an ISO 17025 and ISO 9001 certified laboratory. Samples were dried and crushed to 2mm, from which a 250g sub-sample split was then pulverized to 85% passing a 75 micron sieve. Following preparation, assays were determined by the IMS-230 method. A 0.25g aliquot of the prepared pulp was digested in a 4-acid solution consisting of hydrochloric, nitric, perchloric and hydrofluoric acids. 4-acid is a near total digest and only the most highly resistant minerals are not dissolved. The resulting solution was analyzed via ICP-MS and ICP-ES for 48 elements and was corrected for inter-element spectral interferences. Lower detection limits for this procedure are 0.01 ppm for silver, 0.5 ppm for lead, 2 ppm for zinc, and 0.2 ppm for copper. Mercury is not reported due to volatilization in reaction with hydrofluoric acid and gold is not reported due to the small, 0.25g aliquot size being insufficient to overcome the nugget effect.
Gold was analyzed by FAS-111, a 30-gram fire assay fusion with AAS finish. No significant results were reported.
Samples with initial results beyond the upper detection limit of the IMS-230 method were analyzed by procedures ICF-6Ag, ICF-6Cu, ICF-6Pb and ICF-6Zn. The thresholds are 100 ppm for silver, and >1% for copper, lead and zinc.
MSA Labs employs internal quality control standards, duplicates and blank samples at set frequencies.
Blind certified reference materials (CRMs) and blank samples were systematically inserted by the Company into the sample stream and analyzed as part of the Company’s quality assurance/quality control protocol.
Qualified Person
The scientific and technical information in this news release has been reviewed and approved for disclosure by Christopher Longton BS, CPG, Hercules’ Vice President, Exploration. Mr. Longton is a “Qualified Person” for Hercules Silver within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
About Hercules Silver Corp.
Hercules Silver Corp. is a junior mining company focused on the exploration and development of the 100% owned Hercules Silver Project, northwest of Cambridge, Idaho.
The Hercules project is a disseminated silver-lead-zinc system with 28,000 meters of historical drilling across 3.5 kilometers of strike. The additional discovery of a new porphyry copper system at depth in 2023 adds significant upside potential to the Property. The Company is well positioned for growth through the drill bit, having completed extensive surface exploration consisting of soil & rock sampling, geological mapping, IP geophysics.
The Company’s management team brings significant exploration experience through the discovery and development of numerous precious metals projects worldwide.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. Any securities referred to herein have not and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws of an exemption from such registration is available.
Disclaimer for Forward-Looking Information
This news release contains certain information that may be deemed “forward-looking information” with respect to the Company within the meaning of applicable securities laws. Such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information includes statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.
Although the Company believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by its nature, forward-looking information involves assumptions and known and unknown risks, uncertainties and other factors which may cause our actual results, level of activity, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; the Covid-19 pandemic; adverse industry events; the receipt of required regulatory approvals and the timing of such approvals; that the Company maintains good relationships with the communities in which it operates or proposes to operate, future legislative and regulatory developments in the mining sector; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and generally; the ability of the Company to implement its business strategies; competition; the risk that any of the assumptions prove not to be valid or reliable, which could result in delays, or cessation in planned work, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company’s expectations, as well as other assumptions risks and uncertainties applicable to mineral exploration and development activities and to the Company, including as set forth in the Company’s public disclosure documents filed on the SEDAR website at www.sedar.com.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF HERCULES SILVER AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE HERCULES SILVER MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Hercules Silver Corp. (“Hercules Silver” or the “Company”) (TSX-V: BIG) (OTCQB: BADEF) (FWB: 8Q7) is pleased to announce it has entered into a lease option agreement (the “Agreement”) between the Company, Anglo-Bomarc, U.S., Inc., a wholly owned subsidiary of the Company (the “Lessee”) and local prospector Merrill Palmer (the “Lessor”), dated September 27, 2023, which grants Hercules Silver the option to acquire a 100% interest in the Mineral property, comprising eighty-seven (87) unpatented lode mining claims within the Mineral mining district (“Mineral” or the “Property”) located on Bureau of Land Management (“BLM”) administered lands, 14 miles southwest of the Company’s flagship Hercules property in Washington County, Idaho.
Chris Paul, CEO and Director of the Company, noted: “We’ve entered into a lease option agreement to secure another key piece of ground in the Hercules mining district, which the Company believes shows strong potential to emerge into a significant copper porphyry belt. The Hercules Copper Belt, as it’s referred to internally, represents a trend of underexplored copper porphyry targets with excellent discovery potential. Relative to Hercules, the Mineral Project appears to be the next best developed prospect in the district and adds another compelling copper-gold porphyry target to the portfolio. We are highly encouraged by Mineral’s historical drilling, strong soil geochemistry and similar geological setting to the Hercules project.”
About the Mineral Property:
The Mineral Property was staked by renowned prospector, Merrill Palmer, who previously staked and discovered the Palmer VMS Project in Alaska. Mr. Palmer resides in the nearby town of Oxbow, Oregon, and has been prospectingthe Hercules and Mineral mining districts for the past 15 years, including staking of the Mineral Property in 2011.
The Mineral mining district was so-named after prospectors discovered rhyolite-hosted silver-copper-lead-zinc-bearing replacement mineralization in the area during the 1870s. A town site was established, and small-scale mining began in the 1880s and continued in earnest until the repeal of the Sherman Silver Purchase Act by U.S. President Cleveland in 1893, which caused a collapse in the silver price and decimated the silver mining industry. The mines and smelters at Mineral shut down at that time, and subsequent mining was very sporadic and conducted at a small scale through to 1950. The district has been essentially dormant ever since, apart from a few years of historical exploration during the late 1960s/early 1970s, but has never had a modern, systematic exploration approach applied to it.
Cyprus Mines Corporation (“Cyprus”) acquired a position in the district in 1968, after reconnaissance work indicated the presence of two potential deposit types: rhyolite-hosted, replacement-style silver-copper-lead-zincmineralization on the southern half of the Property (similar in nature to the near-surface mineralization style that occurs at Hercules) and porphyry copper-gold style mineralization, hosted in potassium-rich dioritic intrusive rocks which underlie the rhyolite and outcrop on the northern half of the Property.
Cyprus carried out exploration activities between April of 1968 and February of 1970, consisting of geological mapping, geochemical soil surveys, a 17 line-mile IP-resistivity geophysical survey, and a 40-hole program of reverse circulation, churn, and core drilling. Cyprus’s exploration efforts were focused on near-surface silver mineralization, amenable to bulk mining methods. Although they intersected narrow, high-grade silver-bearing structures – including up to 7 meters grading 701 g/t Ag and 3.5% Cu in MDD-4,2 a hole drilled between the historical Boone and Enterprise mines, on an inlying (adjacent) patented mining claim currently held by a 3rdparty – they terminated the program without evaluating the copper-gold porphyry potential in the underlying and adjacent intrusive rocks which outcrop on the northern half of the Property. Merrill Palmer has provided the Company with significant exploration data from these historicalexploration programs by Cyprus.
Cyprus’s soil survey outlined a >400 ppm Cu-in-soil anomaly over an approximate area of 1.5 km by 3 km, which overlies a broad zone of anomalous IP chargeability associated with the potassium-rich dioritic intrusions1.
Cyprus drilled just two holes into the copper porphyry target zone. These holes were drilled prior to Cyprus conducting their IP survey. A 2014 geophysical inversion of the IP data shows that the holes were both drilled at the northeast edge of a weaker portion of the anomaly, as shown in Figures 1-3. Regardless, holes MDD-1 and MDD-2 both intersected copper mineralization accompanied by distal alteration (propylitic) that typically surrounds the outer margin of a porphyry copper system. Gold and molybdenum were not assayed for at the time, howevermodern sampling indicates the presence of both metals within the porphyry target. MDD-2 assayed 266 m of 0.17% Cu from 5 m depth to the end of the hole at 271 m. Hole MDD-1 assayed 52 m of 0.13% Cu from 70 m to 122 m, and 151 m of 0.11% Cu from 151 m to end-of-hole at 302m1,. This grade of mineralization is consistent with distal propylitic alteration, which was historically logged by Cyprus throughout these holes. The main body of the chargeability anomaly, as outlined by the purple dashed lines on Figures 1-3, has not yet been tested.
In 2013, Newmont Corporation (TSX: NGT) (“Newmont”)carried out an evaluation of the Property and collected 41 select rock grab samples at mineralized showings and 213 soil samples on a regular 100m spaced grid that covers a portion of the porphyry target. The soil results revealed a strong copper-gold-molybdenum anomaly, with values ranging up to 6,370 ppm Cu, 206 ppb Au, and 65 ppm Mo, over 1.8 kilometers in length. The soil anomaly isconsistent with a porphyry copper target that remains open for expansion. Select rock grab samples returned up to 30.3 g/t Au, 852 ppm Mo and 5.9% Cu3. Figures 1-3 present the anomalous geochemistry and IP chargeability associated with the porphyry copper-gold zone.
In 2014, Radius Gold Inc. (TSX-v: RDU) (“Radius”) leased the Property from Merrill Palmer and flew a large airborne magnetic and radiometric survey, carried out selective rock and soil sampling and carried out a modern inversion of the digitized historical IP geophysical data. Geophysical inversions provide machine interpreted 3D models of both resistivity and chargeability data. A depth slice of the 3D chargeability model is presented on Figures 1-3.
More recently, prospecting work undertaken by the Lessor, Merrill Palmer, has reported the existence of 0.1 to 1 m thick quartz-tourmaline veins within the intrusion that grade up to 20.1 g/t Au and 5% Cu to the southeast of the historical Jessie mine3. This zone has not been tested by drilling.
Figure 1: Copper in Newmont’s 2013 soil samples and select grab samples3, IP chargeability depth slice, and historical drill collars with labels for MDD-1, MDD-2, and MDD-4. Note that the IP survey was carried out after the 1969 drill program and the >1km central and ~1km eastern chargeability anomaly have not yet been tested.MDD-2 returned 266 m of 0.17% Cu (Au and Mo not assayed for) from 5 m depth in distal propylitic alteration1,2.
Figure 2: Gold in Newmont’s 2013 soil samples and select grab samples3, IP chargeability depth slice, and historical drill collars with labels for MDD-1, MDD-2, and MDD-4. Note that the IP survey was carried out after the 1969 drill program and the >1km central and ~1km eastern chargeability anomaly have not yet been tested. MDD-2 returned 266 m of 0.17% Cu (Au and Mo not assayed for) from 5 m depth in distal propylitic alteration1,2.
Figure 3: Molybdenum in Newmont’s 2013 soil samples and select grab samples3, IP chargeability depth slice, and historical drill collars with labels for MDD-1, MDD-2, and MDD-4. Note that the IP survey was carried out after the 1969 drill program and the >1km central and ~1km eastern chargeability anomaly have not yet been tested. MDD-2 returned 266 m of 0.17% Cu(Au and Mo not assayed for) from 5 m depth indistal propylitic alteration1,2.
This news release contains information about adjacent properties on which the Company has no right to explore or mine. Readers are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the Company’s properties. The reader is cautioned that rock grab samples are selective by nature and may not represent the true grade or style of mineralization across the Property and Hercules believes the work completed by historical operators was performed to a professional standard, but has not independently confirmed the results.
Terms of the Agreement:
Pursuant to the terms and subject to the conditions of the Agreement, the Company and/or the Lessee will be required to make lease payments in accordance with the following schedule:
Payment Date
Cash Payments
Share Consideration
Within five business days of TSXV Approval
US$100,000
$0
September 27, 2024
US$60,000
US$60,000*
September 27, 2025
US$70,000
US$70,000*
September 27, 2026
US$80,000
US$80,000*
September 27 2027
US$80,000
US$80,000*
September 27, 2028
US$80,000
US$80,000*
September 27, 2029
US$80,000
US$80,000*
September 27, 2030
US$80,000
US$80,000*
*The share consideration issuable pursuant to the Agreement will be based on the 10-day volume weighed average price (“VWAP”) of the Company’s common shares (“Common Shares”) on the TSX Venture Exchange (the “TSXV”) prior to the applicable payment date.
Upon execution of the Agreement, the Company shall also pay the annual maintenance fees for the claims. The Agreement provides the Lessee with certain rights,including but not limited to, the right to access, enter, occupy, improve, explore, use, market, sell and dispose mineral and mineral substances on or from the Property.
At any time prior to the eighth anniversary of the Agreement, the Lessee has the right to purchase the Property for an aggregate of US$3 million (the “Option”), comprised of US$1.5 million in cash and Common Shares equal to US$1.5 million at a deemed value per Common Share equal to the 10-day VWAP of the Common Shares on the TSXV on the day preceding the delivery of the Common Shares to Lessor pursuant to the Option. In the event that the Option is exercised, the Lessee will receive credit for all lease payments previously made pursuant to the Agreement, which will serve to reduce the cash and Common Share value owed upon potential exercise of the Option.
At the conclusion of the eight-year term, if Lessee elects not to purchase the Property pursuant to the Option, then Lessee has the sole and exclusive right and discretion to continue to lease the Property by providing the Lessor with: (i) annual lease payments of US$160,000 comprising of US$80,000 in cash and Common Shares valued at US$80,000, at a deemed price per Common Share equal to the 10-day VWAP of the Common Shares on the TSXV on the day preceding the anniversary of the Agreement; and a 2% net smelter return royalty from the sale of all minerals on the Property.
In the event that the Lessee pays an aggregate total of US$2,000,000 in royalties, then the Lessee may reduce the royalty rate to 1% upon payment of a one-time lump sum of US$1,000,000 to Lessor. Thereafter, Lessor shall receive a 1% net smelter return royalty for production on any or all unpatented claims within the Property. If Lessee does not elect to “buy down” the Royalty, then Lessor shall receive a 2% net smelter return royalty for production on any or all unpatented claims within the Property.
The Agreement remains subject to approval by the TSXV.
Qualified Person
The scientific and technical information in this news release has been reviewed and approved for disclosure by Christopher Longton BS, CPG, Hercules’ Vice President, Exploration. Mr. Longton is a “Qualified Person” for Hercules Silver within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101“). Hercules believes the work completed by historical operators was performed to a professional standard, but has not independently confirmed the results.
About Hercules Silver Corp.
Hercules Silver Corp. is a junior mining company focused on the exploration and development of the 100% owned Hercules Silver Project, northwest of Cambridge, Idaho.
The Hercules project is a disseminated silver-lead-zinc system with 28,000 meters of historical drilling across 3.5 kilometers of strike. The Company is well positioned for growth through the drill bit, having completed extensive surface exploration consisting of soil & rock sampling,geological mapping, IP geophysics.
The Company’s management team brings significant exploration experience through the discovery and development of numerous precious metals projects worldwide.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. Any securities referred to herein have not and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws of an exemption from such registration is available.
Disclaimer for Forward-Looking Information
This news release contains certain information that may be deemed “forward-looking information” with respect to the Company within the meaning of applicable securities laws. Such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information includes statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. Forward-looking information contained in this press release may include, without limitation, the expectation that the Company will fulfil its obligations under the Agreement and make the required payments; exploration plans and expected exploration and drilling results at the Property, results of operations, and the expected financial performance of the Company.
Although the Company believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by its nature, forward-looking information involves assumptions and known and unknown risks, uncertainties and other factors which may cause our actual results, level of activity, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; the Covid-19 pandemic; adverse industry events; the receipt of required regulatory approvals and the timing of such approvals; that the Company maintains good relationships with the communities in which it operates or proposes to operate, future legislative and regulatory developments in the mining sector; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and generally; the ability of the Company to implement its business strategies; competition; the risk that any of the assumptions prove not to be valid or reliable, which could result in delays, or cessation in planned work, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company’s expectations, as well as other assumptions risks and uncertainties applicable to mineral exploration and development activities and to the Company, including as set forth in the Company’s public disclosure documents filed on the SEDAR website at www.sedar.com.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF HERCULES SILVER AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE HERCULES SILVER MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
305-1770 Burrard St. Vancouver, British Columbia V6J 3G7
Hercules Silver Corp. (“Hercules Silver” or the “Company”) (TSX-V: BIG) (OTCQB: BADEF) (FWB: 8Q7) is pleased to report silver-lead-zinc results from the first 5 drill holes of its Phase II drill program, targeting near surface silver mineralization at its Hercules Silver Property located in western Idaho (“Hercules” or the “Property”). These results are the first of the Company’s ongoing 6,000-meter Phase II infill, expansion, and discovery-focused drill program.
The upper part of HER-23-05 intercepted 84.2 meters of 54.1 g/t AgEq, beginning at a shallow depth of 4.5 m, including a higher-grade intercept of 27.3 m grading 113.4 g/t AgEq starting at 36.7 m.
HER-23-04 intercepted 28.5 meters of 102.6 g/t AgEq, beginning at 39 m, including a higher-grade intercept of 2.7 m grading 416.2 g/t AgEq.
All holes reported are either step-out or infill holes, expanding on historical mineralization.
HER-23-05 was continued to depth to test a chargeability anomaly and intercepted blind porphyry copper alteration and mineralization, assays for which remain pending.
Four deep holes have now been drilled across 1.2 kilometers of the chargeability anomaly, all of which intersected pyrite-rich phyllic alteration, interpreted to represent the margins of a large porphyry copper system.
Deep drilling continues, targeting potentially favourable alteration to the west.
A third drill rig has now been added to the Phase II program.
Chris Paul, CEO and Director of the Company, noted: “Our Phase II infill and expansion drilling has expanded on historical mineralization and demonstrated the presence of broad intervals of silver at the Frogpond Zone. With assays pending for many holes, including several other zones, we’re confident in the potential to further validate and expand on the near surface silver across the Property. We’re currently drilling hole 21 of the 2023 season and have now added a third drill rig. In addition, our first ever deep drilling has intersected blind porphyry copper alteration across 1.2 kilometers, demonstrating the presence of a major hydrothermal system on the Property.”
Silver Mineralization at Frogpond
The near-surface drilling is focused on validating and expanding zones of historical silver mineralization at Hercules. Historical drilling was limited to vertical reverse circulation (“RC”) holes which returned minimal geological information. The 2023 program is utilizing angled drill holes with oriented core, providing new information on the controls and style of mineralization, and continuing to aid with the expansion.
HER-23-05 intersected a broad zone of shear-hosted mineralization, with flooding and replacement of pervasive dark grey sulfide mineralization (a combination of galena, sphalerite and tetrahedrite-tennantite). The broad zone of replacement is bracketed on either side by significant fault/shear zones, which appear to control the flow of hydrothermal fluids. Tracing this and other zones along strike is the main objective for adding to the historical mineralization. Logging of holes now being drilled at other zones, including the nearby Hercules Adit, show similar promise for expansion.
Table 1: Significant Drill Intercepts
Hole ID
From (m)
To (m)
Interval (m)
AgEq1 (g/t)
Ag (g/t)
Cu (%)
Pb (%)
Zn (%)
Mn (%)
HER-23-01
50.08
81.99
31.91
34.5
11.4
0.11
0.62
1.23
including
50.08
56.69
6.61
49.2
17.7
0.15
0.86
1.34
including
65.23
69.8
4.57
57.8
13.4
0.23
1.18
1.66
including
78.33
81.99
3.66
79.9
26.7
0.25
1.45
1.84
AND
112.47
123.44
10.97
25.6
24.6
0.01
0.07
1.41
HER-23-02
20.32
60.44
40.12
36.7
29.8
0.04
0.20
1.17
including
20.32
32
11.68
67.0
57.6
0.10
0.28
2.09
including
58.92
60.44
1.52
130.0
117.0
0.02
0.17
0.94
HER-23-03
17.37
56.39
39.02
42.1
37.1
0.02
0.18
0.87
including
36.58
44.2
7.62
69.9
65.1
0.04
0.17
0.82
HER-23-04
10.15
12.19
2.04
73.2
75.0
0.10
0.25
AND
39.01
67.54
28.53
102.6
93.6
0.10
0.35
0.75
including
59.68
62.36
2.68
416.2
426.6
0.03
0.13
0.57
HER-23-05
4.54
88.76
84.22
54.1
36.2
0.11
0.35
3.86
including
27.13
28.65
1.52
114.9
79.7
0.21
0.28
0.42
2.5
including
36.73
64.01
27.28
113.4
77.1
0.13
0.16
0.76
4.9
AND
170.69
178.31
7.62
51.1
43.2
0.07
0.10
0.07
4.15
1Silver equivalent (AgEq) grades are calculated using metal price assumptions of: silver US$23.50/oz., copper US$4.00/lb, lead US$1.00/lb and zinc US$1.50/lb. Silver equivalent grade is calculated as AgEq (g/t) = Ag (g/t) x Ag rec. + (Cu (%) x Cu rec. x 118.558) + (Pb (%) x Pb rec. x 28.568) + (Zn (%) x Zn rec. x 42.852). Metallurgical recoveries assumed are 93% for silver, 80% for lead and 79% for zinc, based on historical sulfide floatation tests by Britton, 1977. A reasonable assumption of 80% recovery is applied for copper based on comparable base metal recovery values.
Figure 1: Plan view of the Frogpond Zone showing significant intercepts from 2023 analytical results received and silver equivalent grade bars from 2022-2023 drill holes
Table 2: 2023 Drill Hole Locations
Hole ID
Easting
Northing
Depth (m)
Azimuth
Dip
Hole type
HER-23-01
511432
4956616
148.71
210.36
-76.77
Core
HER-23-02
511342
4956557
83.48
30.31
-44.92
Core
HER-23-03
511341
4956558
139.32
41.99
-57.31
Core
HER-23-04
511289
4956584
71.93
29.71
-70.36
Core
HER-23-05
511231
4956639
435.32
69.78
-70.06
Core
Blind Porphyry Copper System
2022 field work by the Company previously demonstrated the potential for a porphyry copper system hosted within the underlying Seven Devils Group volcanics, exposed on the east side of the Property. IP geophysical surveying conducted over the silver system on the west side of the Property however returned a large chargeability anomaly below the limit of historical drilling, which is open in several directions. Blind drilling across 1.2 kilometers of the chargeability anomaly has now returned strong alteration, veining, and mineralization, consistent with the margins of a porphyry copper system and early observations demonstrate it’s considerably larger and more intense than was first interpreted from surface exposures. A simplified description of the current geological interpretation follows.
A shallow west-dipping thrust fault (shown in red on Figure 2), separates copper-gold-molybdenum bearing Seven Devils volcanics (the “Lower Plate”) to the east from silver-lead-zinc-manganese bearing volcanics, including the Hercules Rhyolite (the “Upper Plate”), to the west. East of this thrust, several known copper-gold targets, including the Big Cut Skarn, Lightning Breccia, and Metheny Zones are exposed at surface. West of the shallow-dipping thrust, the copper-gold system appears to also underlie the majority of the silver-lead-zinc-manganese bearing Upper Plate rocks at moderate depths of just 100-300 meters.
Quartz-sericite-pyrite (“phyllic”) alteration has now been intersected in all deep holes. Phyllic alteration typically manifests as an outer shell of highly chargeable pyrite with copper mineralization, surrounding an inner shell of stronger copper mineralization with lesser chargeable pyrite. Early modeling of the four widely-spaced holes suggests a potential vector to the west, guided largely by alteration sequences in drill core and variations in the ratio of chalcopyrite:pyrite. Upcoming holes are therefore designed to step west of the phyllic halo, into a neighboring region of moderate chargeability, which may represent increasing chalcopyrite relative to pyrite (Figure 2)
Further IP geophysical surveying is scheduled to commence at the end of September. The 2022 survey was originally designed to cover just the strongest portion of the near-surface silver system. Given current indications for the potential size of the porphyry copper system, the survey will be expanded significantly. It will be expanded east to test for additional centers at depth across several kilometers of strong surface mineralization. It will also be expanded west, where current drilling shows increasing alteration and mineralization below the silver system.
Figure 2: Potential alteration zonation, interpreted from observations in 4 deep drill holes across 1.2 kilometers, and IP chargeability at 200 meters below surface. Further IP surveying is planned to the east, where other centers may exist to alter this interpretation, as well as to the west where current drilling indicates increasing alteration/mineralization. Two planned holes are shown in white, to test increasing alteration to the west, and more moderate chargeability which may represent increasing chalcopyrite relative to pyrite.
Sample Analysis and QAQC
All drill core samples were prepped and analyzed at MSA Labs in Langley, British Columbia, an ISO 17025 and ISO 9001 certified laboratory. Samples were dried and crushed to 2mm, from which a 250g sub-sample split was then pulverized to 85% passing a 75 micron sieve. Following preparation, assays were determined by the IMS-230 method. A 0.25g aliquot of the prepared pulp was digested in a 4-acid solution consisting of hydrochloric, nitric, perchloric and hydrofluoric acids. 4-acid is a near total digest and only the most highly resistant minerals are not dissolved. The resulting solution was analyzed via ICP-MS and ICP-ES for 48 elements and was corrected for inter-element spectral interferences. Lower detection limits for this procedure are 0.01 ppm for silver, 0.5 ppm for lead, 2 ppm for zinc, and 0.2 ppm for copper. Mercury is not reported due to volatilization in reaction with hydrofluoric acid and gold is not reported due to the small, 0.25g aliquot size being insufficient to overcome the nugget effect.
Samples with initial results beyond the upper detection limit of the IMS-230 method were analyzed by procedures ICF—6Ag, ICF-6Pb and ICF-6Zn. The thresholds were 100 ppm for silver, and >1% for lead and zinc. Preliminary silver assays that returned values >1000 ppm were determined by fire assay with a 50g charge for the final result.
MSA Labs employs internal quality control standards, duplicates and blank samples at set frequencies.
Blind certified reference materials (CRMs) and blank samples were systematically inserted by the Company into the sample stream and analyzed as part of the Company’s quality assurance/quality control protocol.
Qualified Person
The scientific and technical information in this news release has been reviewed and approved for disclosure by Christopher Longton BS, CPG, Hercules’ Vice President, Exploration. Mr. Longton is a “Qualified Person” for Hercules Silver within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
About Hercules Silver Corp.
Hercules Silver Corp. is a junior mining company focused on the exploration and development of the 100% owned Hercules Silver Project, northwest of Cambridge, Idaho.
The Hercules project is a disseminated silver-lead-zinc system with 28,000 meters of historical drilling across 3.5 kilometers of strike. The Company is well positioned for growth through the drill bit, having completed extensive surface exploration consisting of soil & rock sampling, geological mapping, IP geophysics.
The Company’s management team brings significant exploration experience through the discovery and development of numerous precious metals projects worldwide.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. Any securities referred to herein have not and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws of an exemption from such registration is available.
Disclaimer for Forward-Looking Information
This news release contains certain information that may be deemed “forward-looking information” with respect to the Company within the meaning of applicable securities laws. Such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information includes statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.
Although the Company believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by its nature, forward-looking information involves assumptions and known and unknown risks, uncertainties and other factors which may cause our actual results, level of activity, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; the Covid-19 pandemic; adverse industry events; the receipt of required regulatory approvals and the timing of such approvals; that the Company maintains good relationships with the communities in which it operates or proposes to operate, future legislative and regulatory developments in the mining sector; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and generally; the ability of the Company to implement its business strategies; competition; the risk that any of the assumptions prove not to be valid or reliable, which could result in delays, or cessation in planned work, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company’s expectations, as well as other assumptions risks and uncertainties applicable to mineral exploration and development activities and to the Company, including as set forth in the Company’s public disclosure documents filed on the SEDAR website at www.sedar.com.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF HERCULES SILVER AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE HERCULES SILVER MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Seven drill holes completed to date, with silver mineralization observed in all holes (HER-23-01 to HER-23-07), and assays currently pending;
Oriented core drilling demonstrates a potential northwest-southeast control to higher-grade silver mineralization within Frogpond, suggesting the potential to extend mineralization between historical zones;
First deep hole completed into the western margin of a large chargeability anomaly announced last year, drill hole HER-23-05, intersected alteration and veining consistent with the outer margins of a potential porphyry copper system;
Due to the new style of alteration intersected, HER-23-05 was drilled beyond its original planned depth, to a total of 435 meters;
A second deep hole is currently in progress, HER-23-08, collared approximately 185 meters northeast of HER-23-05, to further investigate the potential of the chargeability anomaly;
The chargeability anomaly spans approximately 1.8 kilometers north-south and remains open to the east, where widespread copper mineralization and porphyry style alteration has been noted on surface;
The Company has elected to add a second drill rig to the Property to allow testing of both near surface silver mineralization as well as potential additional mineralization at depth;
Toronto, Ontario / July 28, 2023 – Hercules Silver Corp. (“Hercules Silver” or the “Company”) (TSX-V: BIG) (OTCQB: BADEF) (FWB: 8Q7) is pleased to report on progress from its Phase II drill program at the Hercules Property in western Idaho (“Hercules” or the “Property”). Drill holes HER-23-01 to HER-23-07 have been completed within the Frogpond Zone, intersecting varying oxidized and dark grey to black silver-bearing sulfide mineralization within the Hercules Rhyolite host unit. Mineralized veins within the Frogpond Zone show a northwest-southeast trend, as determined from measurements of oriented drill core. Further drilling along this trend is planned, following the receipt of assays from current drill holes.
Drill hole HER-23-05 intersected strong silver-bearing mineralization in the near surface and was continued to depth to test the western limit of a large chargeability anomaly. The anomaly was uncovered by a 3D IP survey carried out over the silver-bearing Hercules Rhyolite host unit at surface on the west side of the Property. The survey however returned a large chargeability anomaly below the limit of historical drilling and the interpreted base of the Hercules Rhyolite. The cause of such a large anomaly at depth was unknown at the time, however HER-23-05 intersected phyllic alteration, veining, and mineralization, consistent with the outer margins of a porphyry copper system, beginning at the top of the chargeability anomaly. It was therefore elected to continue drilling beyond HER-23-05’s planned depth. Phyllic alteration is dominated by pyrite and lesser chalcopyrite, but typically occurs around a higher-grade core of potassic alteration with stronger chalcopyrite mineralization. The chargeability anomaly increases in thickness towards the east where it currently remains open toward stronger copper mineralization at surface. A second drill rig has been added and a second deep drill hole is currently in progress, collared 185 meters to the northeast of HER-23-05. Figure 1 below shows the location of HER-23-05 relative to the anomalous chargeability and copper values at surface. The chargeability anomaly remains open to the east and the Company is currently planning a potential expansion of the survey up to 2 kilometers east.
Figure 1: HER-23-05 drill trace relative to widespread copper mineralization at surface and a 250m depth slice through the chargeability anomaly which remains open to the east with further surveying planned
Management Commentary
Chris Paul, CEO and Director of the Company, noted: “We’re pleased with how our Phase II drill program is progressing and excited to have a second rig now on site. The silver mineralization we’ve intersected throughout the Frogpond Zone has provided us with excellent structural information and indications of a potential extension of the zone. We look forward to further extending our drilling within the near surface silver environment as well as further testing of the exciting new chargeability anomaly at depth.”
Silver Mineralization
Oriented structural measurements of dark grey sulfide veining indicate a northwest-southeast trend to the silver mineralization. Figure 2 illustrates a potential corridor of higher silver grades within the Frogpond Zone that may extend northwest to the Hercules Adit Zone and southeast to the Haystack Zone. Large gaps in the historical drilling remain untested between the zones. The historical drilling was designed for resource definition (shallow vertical holes in a grid pattern), and little attention was paid to the controls on mineralization. The 2023 drill program is utilizing rigs capable of oriented core, allowing for a better understanding of the structural controls that will potentially extend the zones along strike and at depth. Assays are currently pending for HER-23-01 to HER-23-07, the results of which will further optimize the next round of step-out targets.
Table 1: Phase II Completed Drill Holes
Zone
Hole ID
Easting
Northing
Azimuth
Dip
Hole Length (m)
FROGPOND
HER-23-01
511432
4956616
210
-76.7
148.71
HER-23-02
511342
4956557
30
-44.9
83.48
HER-23-03
511341
4956558
42
-57.3
139.32
HER-23-04
511289
4956584
30
-70.4
71.93
HER-23-05
511231
4956639
70
-70.1
435.32
HER-23-06
511265
4956663
30
-60
60
HER-23-07
511256
4956646
31
-60.3
108.51
Figure 2: Surface projection of drill traces HER-23-01 to HER-23-07 in the Frogpond Zone, with drill traces coloured blue for near-surface silver targets and orange for the underlying chargeability target in HER-23-05. The interpreted northwest-southeast corridor of higher-grade silver is shown in dashed blue lines, near surface chargeability overlain in transparent.
Second Drill Added
Based on a pattern of alteration observed at depth, the Company has made the decision to add a second drill rig to allow further testing of the large chargeability anomaly at depth. The first drill rig will continue to investigate the large chargeability anomaly with significant step outs of several hundred meters to the east and south, while the second drill rig will remain focused on the primary silver targets in the near surface environment. The next deep drill hole in sequence (HER-23-08) is utilizing an existing drill pad approximately 185 meters to the northeast of HER-23-05 and is favorably oriented to intersect a vein orientation measured in the deeper parts of HER-23-05 (Figure 3).
Figure 3: Surface projection of drill traces HER-23-01 to HER-23-07 in the Frogpond Zone with drill traces coloured blue for near-surface silver targets and orange for the underlying chargeability target in HER-23-05. The interpreted northwest-southeast corridor of higher-grade silver is shown in dashed blue lines, with the orange dashed lines representing the outline of the chargeability anomaly at depth, shown in transparent pink.
Qualified Person
The scientific and technical information in this news release has been reviewed and approved for disclosure by Christopher Longton BS, CPG, Hercules’ Vice President, Exploration. Mr. Longton is a “Qualified Person” for Hercules Silver within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
About Hercules Silver Corp.
Hercules Silver Corp. is a junior mining company focused on the exploration and development of the 100% owned Hercules Silver Project, northwest of Cambridge, Idaho.
The Hercules project is a disseminated silver-lead-zinc system with 28,000 meters of historical drilling across 3.5 kilometers of strike. The Company is well positioned for growth through the drill bit in 2023, having completed extensive surface exploration in 2022 consisting of soil & rock sampling, geological mapping, IP geophysics, and a 9-hole drill program.
The Company’s management team brings significant exploration experience through the discovery and development of numerous precious metals projects worldwide.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. Any securities referred to herein have not and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws of an exemption from such registration is available.
Disclaimer for Forward-Looking Information
This news release contains certain information that may be deemed “forward-looking information” with respect to the Company within the meaning of applicable securities laws. Such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information includes statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.
Although the Company believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by its nature, forward-looking information involves assumptions and known and unknown risks, uncertainties and other factors which may cause our actual results, level of activity, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; the Covid-19 pandemic; adverse industry events; the receipt of required regulatory approvals and the timing of such approvals; that the Company maintains good relationships with the communities in which it operates or proposes to operate, future legislative and regulatory developments in the mining sector; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and generally; the ability of the Company to implement its business strategies; competition; the risk that any of the assumptions prove not to be valid or reliable, which could result in delays, or cessation in planned work, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company’s expectations, as well as other assumptions risks and uncertainties applicable to mineral exploration and development activities and to the Company, including as set forth in the Company’s public disclosure documents filed on the SEDAR website at www.sedar.com.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF HERCULES SILVER AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE HERCULES SILVER MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Phase II drill program now underway, focused on the following targets:
Hercules Adit and Frogpond Zones: Step-out holes aiming to extend mineralization, as well as infill and further verify historical drilling results;
Hercules Rhyolite: Robust silver targets identified through surface mapping, geophysics and geochemistry, including at the Hinge, Haystack and Belmont Zones;
New porphyry copper-silver (+/- gold) target: Interpreted as the center of a large zoned system and feeder for the surrounding silver (+/-lead-zinc) hosted in the Hercules Rhyolite;
Large-scale untested chargeability anomaly at depth, potentially representing a large body of strong sulfide mineralization
Toronto, Ontario / May 31, 2023 – Hercules Silver Corp. (“Hercules Silver” or the “Company”) (TSX-V: BIG) (OTCQB: BADEF) (FWB: 8Q7) is pleased to report that it has mobilized an Atlas Copco CS-14 core drilling rig and commenced drilling the first hole in an extensive 6,000 meter drill program at the Company’s wholly-owned Hercules Silver Property in western Idaho (“Hercules” or the “Property”). Timberline Drilling of Hayden, Idaho has been contracted to carry out the program, which will consist of step-out holes designed to test for extensions of historical mineralization, verify previous historical drilling and test a series of new targets generated by greenfields exploration.
Since acquiring the project in 2021, the Company has consolidated what was historically a fragmented land package, with several different companies holding different parts of the system throughout the 1970’s-1980’s. An 18-month-long greenfields targeting program, consisting of mapping, soil sampling, and rock sampling, has since revealed the presence of a large zoned system, with many portions remaining to be tested, including a potentially large-scale copper-silver-gold porphyry feeder target. The Phase II drill program will not only explore multiple new surface targets but will also test the system with angled holes up to 550 meters long, significantly deeper than the average 92-meter length of historical drill holes. The drilling will be done using triple-tube barrels for enhanced recovery and a core orientation tool for attaining the strike and dip of mineralization. This will not only increase the probability of success but will also improve the efficiency of drilling operations overall. The current Phase II drill plan is illustrated in Figure 1 below.
Figure 1: Phase II Drill Targets
Management Commentary
Chris Paul, CEO and Director of the Company, noted: “We are excited to be underway on our first core drilling program at Hercules; a long-awaited milestone and the culmination of almost two years of extensive surface exploration. Exploration technology has advanced significantly since the 1980s, when economic studies were last underway following the completion of over 300 historical drill holes. At that time, a crash in the price of silver had forced the previous operators to put small-scale open pit development plans on hold. More than 30 years later, we’ve significantly increased the Property holdings, carried out modern, systematic exploration on the consolidated land package, and identified the presence of a much larger zoned system. Our 3D geological model suggests that the historical drilling only tapped into the shallow and distal parts of the system. We are now entering potentially the most exciting period in the history of Hercules Silver, and an important step towards delivering significant value for our shareholders.”
Phase II Drill Plan Summary
The details of the Phase II drill plan were released on May 8, 2023 and are repeated again below for reference.
Table 1: Phase II Planned Drill Holes
Zone
Hole ID
Easting
Northing
Azimuth
Dip
Hole Length (m)
HERCULES ADIT
ADT-23-01
511075
4956964
80
55
80
ADT-23-02
511129
4957008
200
70
120
ADT-23-03
511129
4957008
195
82
120
ADT-23-04
511129
4957008
35
87
130
ADT-23-05
511129
4957008
20
73
160
ADT-23-06
511160
4957067
340
88
180
ADT-23-07
511160
4957067
80
76
130
ADT-23-08
511132
4957111
110
87
210
ADT-23-09
511132
4957111
110
72
200
TOTAL HERC ADIT
1330
FROGPOND
FRG-23-01
511425
4956617
210
78
140
FRG-23-02
511266
4956664
31
60
60
FRG-23-03
511256
4956646
31
60
70
FRG-23-04
511231
4956637
69
69
375
FRG-23-05
511038
4956638
0
90
130
FRG-23-06
511338
4956553
30
45
100
FRG-23-07
511287
4956587
30
65
150
FRG-23-08
511338
4956554
50
52
150
TOTAL FROGPOND
1295
HINGE
HNG-23-01
510895
4956812
70
45
300
HNG-23-02
511356
4956858
100
45
400
HNG-23-03
511420
4956757
250
45
100
TOTAL HINGE
800
HAYSTACK
HAY-23-01
511579
4956352
50
60
400
HAY-23-02
511338
4956553
30
45
75
TOTAL HAYSTACK
475
METHENY
MET-23-01
511941
4956216
50
45
550
TOTAL METHENY
550
BELMONT
BEL-23-01
511447
4955609
102
45
110
BEL-23-02
511447
4955609
70
45
90
BEL-23-03
511447
4955609
152
45
100
BEL-23-04
511447
4955609
100
65
125
BEL-23-05
511833
4955730
35
60
400
TOTAL BELMONT
825
LIGHTNING
LIT-23-01
512162
4955444
22
45
500
LIT-23-02
512162
4955444
65
45
500
TOTAL LIGHTNING
1000
TOTAL METERS – ALL ZONES
6,155
Silver-Lead-Zinc Targets
Hercules Adit/Frogpond Zones
1.Testing extensions of the Hercules Adit and Frogpond Zones along strike and at depth, including vertical structures and high-grade shoots which may have been missed by the vertical historical drilling. Two holes will test for the extension of a mineralized shoot that appears to have been down-dropped at the east end of the Frogpond Zone and partially intersected by historical drillhole 83-5. Hole 83-5 intersected 25.9 meters of 85 g/t Ag, 1.70% Pb and 2.09% Zn[1] from 86.9 to 112.8 meters and remains open at depth and to the east.
2.Verifying and potentially extending silver mineralization intersected at depth on the west end of the Frogpond Zone. Historical drillhole 83-16, one of the deepest holes drilled on the Property, was halted due to caving ground at 420 feet (~128 meters), with the final 7.6 meters grading 214 g/t Ag, 0.13% Pb and 0.17% Zn1. Re-entry at the time was unsuccessful, and the deep intercept was not further tested.
Haystack Zone
3. Testing mineralization discovered during a 2022 surface rock chip sampling program on the west side of the Haystack Zone, which is associated with a near-surface vertical chargeability anomaly.
4. Testing a separate zone of mineralization at the east end of the Haystack Zone, associated with a similar near-surface vertical chargeability anomaly. A single vertical hole in the area, RDH-7, returned 16.8 meters grading 149 g/t Ag, 0.13% Pb and 0.1% Zn1. The planned hole depth is 550 meters, to also allow testing of the large-scale chargeability anomaly shown below in Figure 2.
1 The historical drilling results are historical in nature and have not been verified by a Qualified Person; therefore, they should not be unduly relied upon.
Figure 2: Vertical Section Showing Deep Drill Holes Relative to Large-Scale Chargeability Anomaly, Looking West
Hinge Zone
5. Two holes within the folded hinge area of the Hercules Rhyolite, with strong rock chip sample grades and a near-surface chargeability anomaly. The holes will be drilled in opposite directions, to determine the dip of the mineralization. The eastward hole will be extended to 400 meters, to also test the large-scale chargeability anomaly shown in Figure 2 above.
6. A potential third hole will be drilled into the fold hinge, from a quartz-alunite-dickite-pyrophyllite altered breccia zone (Photo 1) located to the west of all historical drilling. This is a unique advanced argillic alteration assemblage which typically forms a cap over epithermal and porphyry type mineralization and is not seen elsewhere on the Property. Drilling underneath this advanced argillic breccia may lead to a discovery of new mineralization.
7. Up to 4 holes fanned from a single pad at the Belmont Zone, to test various mineralized structures associated with high-grade rock chip samples and a 1970 historical drill hole (DDH-6) which intersected 83 g/t Ag and 0.25% Zn over 20 meters1 from surface and 93 g/t Ag over 8 meters1 deeper in the hole.
Porphyry Copper-Silver-Gold Targets
8. A 400-meter hole planned in the eastern part of the Belmont Zone to test the southern end of the large-scale chargeability anomaly shown in Figure 2 above. Certain mineral systems, including porphyry coppers, are often surrounded by high-chargeability clay-sericite-pyrite halos. The hole is designed to test both the high-chargeability zone as well as potentially higher-temperature parts of the system underneath and/or adjacent to it.
Metheny Zone
9. A 550-meter hole planned at the Metheny Zone, to test a quartz-feldspar porphyry with dimensions of approximately 850 m x 550 m on surface, associated with strong copper-silver-gold grades and lenses of skarn-type mineralization (Photos 2-7). The Metheny Zone lies east of the limit of the 2022 3D IP survey, however the large-scale chargeability anomaly shown in Figure 2 is centered immediately west of – and likely projects into – the Metheny Zone.
Photo 2: Quartz-Feldspar Porphyry grading 4.3% Cu, 50 g/t Ag
Photo 7: Quartz specularite vein with colloform textured quartz matrix breccia, hosted in Quartz-Feldspar Porphyry grading 0.15% Cu, 9 g/t Ag, 1.2 g/t Au
Lightning Zone
10. Two 500-meter holes testing a strongly-altered hydrothermal breccia pipe, the Lightning Breccia, which may be a key indicator of a buried porphyry copper system. The Lightning breccia consists of hydrothermal quartz/silica clasts, brought up from depth within a surrounding matrix that’s rich in oxidized sulfide mineralization (goethite) (Photos 8-12). The Lightning breccia is associated with a strong copper-gold-silver (+bismuth-tellurium-selenium) geochemical anomaly and has never been drilled. The quartz clasts may represent fragments of a silicified carapace (cap of an intrusion), which were transported upwards during an explosive brecciation event. The pipe may therefore root down into a mineralized porphyry at depth.
Photo 9: Hydrothermal Breccia with high-density quartz veinlet stockwork and strong Bi-Te-Se
Photo 10: Hydrothermal Breccia with quartz clasts and strong Bi-Te-Se
Photo 11: Hydrothermal Breccia with quartz clasts and strong Bi-Te-Se
Qualified Person
The scientific and technical information in this news release has been reviewed and approved for disclosure by Christopher Longton BS, CPG, Hercules’ Vice President, Exploration. Mr. Longton is a “Qualified Person” for Hercules Silver within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). To the best of his knowledge, the technical information pertaining to the Hercules Silver Property, and discussion of it as disclosed in this news release, is neither inaccurate nor misleading.
Management Update
The Company also announces resignation of Mr. Antoine Soucy-Fradette as VP Exploration of the Company effective immediately. Mr. Soucy-Fradette is leaving the Company to pursue other opportunities. The Company wishes Mr. Soucy-Fradette every success in his future endeavours and wishes to thank him for his contribution to Hercules over the past few years.
About Hercules Silver Corp.
Hercules Silver Corp. is a junior mining company focused on the exploration and development of the 100% owned Hercules Silver Project, northwest of Cambridge, Idaho.
The Hercules project is a disseminated silver-lead-zinc system with 28,000 meters of historical drilling across 3.5 kilometers of strike. The Company is well positioned for growth through the drill bit in 2023, having completed extensive surface exploration in 2022 consisting of soil & rock sampling, geological mapping, IP geophysics, and a 9-hole drill program.
The Company’s management team brings significant exploration experience through the discovery and development of numerous precious metals projects worldwide.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. Any securities referred to herein have not and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws of an exemption from such registration is available.
Disclaimer for Forward-Looking Information
This news release contains certain information that may be deemed “forward-looking information” with respect to the Company within the meaning of applicable securities laws. Such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information includes statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.
Although the Company believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by its nature, forward-looking information involves assumptions and known and unknown risks, uncertainties and other factors which may cause our actual results, level of activity, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; the Covid-19 pandemic; adverse industry events; the receipt of required regulatory approvals and the timing of such approvals; that the Company maintains good relationships with the communities in which it operates or proposes to operate, future legislative and regulatory developments in the mining sector; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and generally; the ability of the Company to implement its business strategies; competition; the risk that any of the assumptions prove not to be valid or reliable, which could result in delays, or cessation in planned work, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company’s expectations, as well as other assumptions risks and uncertainties applicable to mineral exploration and development activities and to the Company, including as set forth in the Company’s public disclosure documents filed on the SEDAR website at www.sedar.com.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF HERCULES SILVER AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE HERCULES SILVER MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Toronto, Ontario / May 23, 2023 – Hercules Silver Corp. (“Hercules Silver” or the “Company”) (TSX-V: BIG) (OTCQB: BADEF) (FWB: 8Q7) is pleased to announce the appointment of Mr. Christopher Longton, CPG, as Vice President of Exploration of the Company. Mr. Longton is an accomplished geologist with over 15 years experience from greenfields exploration to production on precious and base metals deposits throughout North America and Australia. He has extensive experience managing large-scale projects, most recently as the Senior Exploration Manager for Integra Resources’ Delamar project in southern Idaho. Prior to Delamar, Chris provided senior geological support on several advanced development and production scale projects for various companies, most notably New Gold Inc. and Equinox Gold Corp. Mr. Longton will now directly manage the advancement of the Company’s Hercules Silver Project in Idaho, USA.
Management Commentary
Mr. Chris Paul, CEO and Director of the Company, commented: “We are very pleased to have Chris Longton join the Hercules Silver team. His extensive exploration management experience will be a great asset to the Company. We look forward to leveraging Chris’ experience in targeting a large silver resource on the Hercules project.”
Mr. Christopher Longton commented: “I am thrilled to be a part of the Hercules exploration team and to have the opportunity to utilize my experience in unlocking the full potential of the Hercules Silver Project. With our shared commitment to quality exploration work, I am confident that we can create significant value for our shareholders and contribute to the success of the company.”
Mr. Longton currently holds a bachelor’s degree in Geology from Illinois State University and is a Certified Professional Geologist (“CPG”) and a Qualified Person (“QP”) as defined by National Instrument 43-101.
The Company has granted 1,250,000 incentive stock options (the “Options“) to Mr. Longton, with an effective date of May 22, 2023. The Options will vest in four equal tranches over 24 months from the grant date of May 22, 2023. The Options are exercisable for a period of 5 years have an exercise price of $0.17 per common share. The Options were granted pursuant to the Company’s omnibus incentive plan approved by shareholders of the company on July 15, 2022.
The Company also granted an additional 1,500,000 Options to certain officers and advisors, with an effective date of May 22, 2023, under the same exercise price and terms.
The Company further announces that Mr. Keith Li, the Company’s Chief Financial Officer has also been appointed as the Company’s Corporate Secretary, effective immediately. Concurrent with Mr. Li’s appointment, Mr. Darren Collins has resigned from his role as Corporate Secretary of the Company. Mr. Collins will remain as a director of the Company.
About Hercules Silver Corp.
Hercules Silver Corp. is a junior mining company focused on the exploration and development of the 100% owned Hercules Silver Project, northwest of Cambridge, Idaho.
The Hercules project is a disseminated silver-lead-zinc system with 28,000 meters of historical drilling across 3.5 kilometers of strike. The Company is well positioned for growth through the drill bit in 2023, having completed extensive surface exploration in 2022 consisting of soil & rock sampling, geological mapping, IP geophysics, and a 9-hole drill program.
The Company’s management team brings significant exploration experience through the discovery and development of numerous precious metals projects worldwide.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. Any securities referred to herein have not and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws of an exemption from such registration is available.
Disclaimer for Forward-Looking Information
This news release contains certain information that may be deemed “forward-looking information” with respect to the Company within the meaning of applicable securities laws. Such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information includes statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur. Forward-looking statements in this news release include but are not limited to, statements with respect to the vesting schedule of the Options, the Company’s objectives, goals or future plans and the expected financial performance of the Company.
Although the Company believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by its nature, forward-looking information involves assumptions and known and unknown risks, uncertainties and other factors which may cause our actual results, level of activity, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; the Covid-19 pandemic; adverse industry events; the receipt of required regulatory approvals and the timing of such approvals; that the Company maintains good relationships with the communities in which it operates or proposes to operate, future legislative and regulatory developments in the mining sector; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and generally; the ability of the Company to implement its business strategies; competition; the risk that any of the assumptions prove not to be valid or reliable, which could result in delays, or cessation in planned work, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company’s expectations, as well as other assumptions risks and uncertainties applicable to mineral exploration and development activities and to the Company, including as set forth in the Company’s public disclosure documents filed on the SEDAR website at www.sedar.com.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF HERCULES SILVER AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE HERCULES SILVER MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Final preparations underway for upcoming Phase II drill program at Hercules, including construction of core logging and cutting facilities;
Phase II program upsized to a minimum of 6,000 meters to allow testing of additional targets and deeper drilling;
The Company expects to remain fully financed for a follow-up Phase III drill program as well;
Phase II program will be focused on the following targets:
Hercules Adit and Frogpond Zones: Step-out holes aiming to extend these zones of historical focus, as well as infill and further verify historical drilling results;
CRD-style silver-lead-zinc host, the Hercules Rhyolite: Strong targets identified through recent surface mapping and geochemistry, including the Hinge, Haystack and Belmont Zones;
New porphyry copper-silver (+/- gold) target identified by surface mapping and geochemistry: Interpreted as a potential feeder zone to silver-lead-zinc mineralization;
Large-scale untested chargeability anomaly at depth, where the Hercules Rhyolite approaches the porphyry copper target: The CRD model predicts an increase in silver-lead-zinc and copper grades
Additional ~$1.3M in cash received from exercise of warrants and options.
Toronto, Ontario / May 8, 2023 – Hercules Silver Corp. (“Hercules Silver” or the “Company”) (TSX-V: BIG) (OTCQB: BADEF) (FWB: 8Q7) is pleased to report that the Company has upsized its previously announced Phase II drill program on the Hercules Property located in western Idaho (“Hercules” or the “Property”). Following the receipt of approximately ~$1.3M in cash from the recent exercise of options and warrants and the closing of a $5.75M private placement, the Company has elected to increase the size of its upcoming Phase II drill program to a minimum of 6,000 meters, allowing for deeper drilling and the testing of additional high-priority targets. The primary goals of the Phase II program will be to (i) extend the best-known historical mineralization at the Hercules Adit and Frogpond Zones, and (ii) test multiple new targets generated by recent greenfields exploration. A third phase of drilling will follow, once all assay results have been received, interpreted and released to the market. The upcoming Phase II drill program is anticipated to commence in the next two weeks and is further detailed in Figure 1 below.
Figure 1: Phase II Drill Targets
Management Commentary
Chris Paul, CEO and Director of the Company, noted: “We’re very excited to kick off our Phase II drilling program and start testing the many highly prospective targets generated over the past 18 months. Our core shack is almost complete, the weather is good, and final preparations are now being made for mobilization. The additional funding we’ve received will allow for a significantly more ambitious Phase II campaign, as well as a Phase III program to continue advancing the highest priority targets.”
Drilling Method
The company has selected Timberline Drilling of Hayden, Idaho (“Timberline”) to carry out the Phase II program. Timberline will provide a rig capable of oriented core drilling, offering significantly more geological and structural information than previous reverse-circulation (“RC”) drilling methods on the Property. Oriented core helps determine the direction that mineralization is trending and increases the probability of tracing mineralized zones with subsequent step-out holes.
To maximize core recovery, Timberline will utilize triple tube barrels to improve on historical recoveries, particularly within the mineralized zones.
The objectives of the program are to:
Drill test the various targets outlined in further detail in the following section;
Obtain high-quality geological and structural information using oriented drill core;
Utilize triple tube barrels for improved core recoveries;
Further refine the exploration model; and
Provide an indication as to the overall target size and vectors within the system.
All of these targets will be drilled from land on which Hercules Silver holds mining rights, including surface drilling rights, as well as a small 20-acre parcel of Bureau of Land Management (BLM) land for which the Company holds a drill permit. The system extends onto lands managed by the United States Forest Service (USFS), for which the Company is currently in the permitting process, including the Grade Creek Zone. Further updates will be made available with respect to permitting progress on other select targets on the Property.
A summary of the planned Phase II drill holes is presented in Table 1, with additional details for each specific target in the following section.
Table 1: Phase II Planned Drill Holes
Zone
Hole ID
Easting
Northing
Azimuth
Dip
Hole Length (m)
HERCULES ADIT
ADT-23-01
511075
4956964
80
55
80
ADT-23-02
511129
4957008
200
70
120
ADT-23-03
511129
4957008
195
82
120
ADT-23-04
511129
4957008
35
87
130
ADT-23-05
511129
4957008
20
73
160
ADT-23-06
511160
4957067
340
88
180
ADT-23-07
511160
4957067
80
76
130
ADT-23-08
511132
4957111
110
87
210
ADT-23-09
511132
4957111
110
72
200
TOTAL HERC ADIT
1330
FROGPOND
FRG-23-01
511425
4956617
210
78
140
FRG-23-02
511266
4956664
31
60
60
FRG-23-03
511256
4956646
31
60
70
FRG-23-04
511231
4956637
69
69
375
FRG-23-05
511038
4956638
0
90
130
FRG-23-06
511338
4956553
30
45
100
FRG-23-07
511287
4956587
30
65
150
FRG-23-08
511338
4956554
50
52
150
TOTAL FROGPOND
1295
HINGE
HNG-23-01
510895
4956812
70
45
300
HNG-23-02
511356
4956858
100
45
400
HNG-23-03
511420
4956757
250
45
100
TOTAL HINGE
800
HAYSTACK
HAY-23-01
511579
4956352
50
60
400
HAY-23-02
511338
4956553
30
45
75
TOTAL HAYSTACK
475
METHENY
MET-23-01
511941
4956216
50
45
550
TOTAL METHENY
550
BELMONT
BEL-23-01
511447
4955609
102
45
110
BEL-23-02
511447
4955609
70
45
90
BEL-23-03
511447
4955609
152
45
100
BEL-23-04
511447
4955609
100
65
125
BEL-23-05
511833
4955730
35
60
400
TOTAL BELMONT
825
LIGHTNING
LIT-23-01
512162
4955444
22
45
500
LIT-23-02
512162
4955444
65
45
500
TOTAL LIGHTNING
1000
TOTAL METERS – ALL ZONES
6,155
Silver-Lead-Zinc Targets
Hercules Adit/Frogpond Zones
Testing extensions of the Hercules Adit and Frogpond Zones along strike and at depth, including vertical structures and high-grade shoots which may have been missed by the vertical historical drilling. Two holes will test for the extension of a mineralized shoot that appears to have been down-dropped at the east end of the Frogpond Zone and partially intersected by historical drillhole 83-5. Hole 83-5 intersected 25.9 meters of 85 g/t Ag, 1.70% Pb and 2.09% Zn[1] from 86.9 to 112.8 meters and remains open at depth and to the east.
Verifying and potentially extending silver mineralization intersected at depth on the west end of the Frogpond Zone. Historical drillhole 83-16, one of the deepest holes drilled on the Property, was halted due to caving ground at 420 feet (~128 meters), with the final 7.6 meters grading 214 g/t Ag, 0.13% Pb and 0.17% Zn1. Re-entry at the time was unsuccessful, and the deep intercept was not further tested.
Haystack Zone
Testing a surface rock chip anomaly[2] on the west side of the Haystack Zone, which is associated with a near-surface vertical chargeability anomaly.
Testing a separate rock chip anomaly2 at the east end of the Haystack Zone, associated with a similar near-surface vertical chargeability anomaly. A single vertical hole in the area, RDH-7, returned 16.8 meters grading 149 g/t Ag, 0.13% Pb and 0.1% Zn1. The planned hole depth is 550 meters, to also allow testing of the large-scale chargeability anomaly shown below in Figure 2.
Figure 2: Vertical Section Showing Deep Drill Holes Relative to Large-Scale Chargeability Anomaly, Looking West
Hinge Zone
Two holes within the folded hinge area of the Hercules Rhyolite, with strong rock chip sample grades and a near-surface chargeability anomaly. The holes will be drilled in opposite directions, to determine the dip of the mineralization. The eastward hole will be extended to 400 meters, to also test the large-scale chargeability anomaly shown in Figure 2 above.
A potential third hole will be drilled into the fold hinge, from a quartz-alunite-dickite-pyrophyllite altered breccia zone (Photo 1) located to the west of all historical drilling. This is a unique advanced argillic alteration assemblage which typically forms a cap over epithermal and porphyry type mineralization and is not seen elsewhere on the Property. Drilling underneath this advanced argillic breccia may lead to a discovery of new mineralization.
Up to 4 holes fanned from a single pad at the Belmont Zone, to test various mineralized structures associated with high-grade rock chip samples and a 1970 historical drill hole (DDH-6) which intersected 83 g/t Ag and 0.25% Zn over 20 meters1 from surface and 93 g/t Ag over 8 meters1 deeper in the hole.
Porphyry Copper-Silver-Gold Targets
A 400-meter hole planned in the eastern part of the Belmont Zone to test the southern end of the large-scale chargeability anomaly shown in Figure 2 above. Certain mineral systems, including porphyry coppers, are often surrounded by high-chargeability clay-sericite-pyrite halos. The hole is designed to test both the high-chargeability zone as well as potentially higher-temperature parts of the system underneath and/or adjacent to it.
Metheny Zone
A 550-meter hole planned at the Metheny Zone, to test a quartz-feldspar porphyry with dimensions of approximately 850 m x 550 m on surface, associated with strong copper-silver-gold grades and lenses of skarn-type mineralization (Photos 2-7). The Metheny Zone lies east of the limit of the 2022 3D IP survey, however the large-scale chargeability anomaly shown in Figure 2 is centered immediately west of – and likely projects into – the Metheny Zone.
Two 500-meter holes testing a strongly-altered hydrothermal breccia pipe, the Lightning Breccia, which may be a key indicator of a buried porphyry copper system. The Lightning breccia consists of hydrothermal quartz/silica clasts, brought up from depth within a surrounding matrix that’s rich in oxidized sulfide mineralization (goethite) (Photos 8-12). The Lightning breccia is associated with a strong copper-gold-silver (+bismuth-tellurium-selenium) geochemical anomaly and has never been drilled. The quartz clasts may represent fragments of a silicified carapace (cap of an intrusion), which were transported upwards during an explosive brecciation event. The pipe may therefore root down into a mineralized porphyry at depth.
Photo 8: Hydrothermal Breccia grading 0.3% Cu, 36 g/t Ag, 0.7 g/t AuPhoto 9: Hydrothermal Breccia with high-density quartz veinlet stockwork and strong Bi-Te-SePhoto 10: Hydrothermal Breccia with quartz clasts and strong Bi-Te-SePhoto 11: Hydrothermal Breccia with quartz clasts and strong Bi-Te-Se
Qualified Person
The scientific and technical information in this news release has been reviewed and approved for disclosure by Donald E. Cameron, MSc, a Registered Member of the Society for Mining, Metallurgy and Exploration, Inc., a QP Member of the Mining & Metallurgical Society of America, Professional Geologist licensed by the State of Idaho, and an independent “Qualified Person” for Hercules Silver within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). To the best of his knowledge, the technical information pertaining to the Hercules Silver Property, and discussion of it as disclosed in this news release, is neither inaccurate nor misleading.
About Hercules Silver Corp.
Hercules Silver Corp. is a junior mining company focused on the exploration and development of the 100% owned Hercules Silver Project, northwest of Cambridge, Idaho.
The Hercules project is a disseminated silver-lead-zinc system with 28,000 meters of historical drilling across 3.5 kilometers of strike. The Company is well positioned for growth through the drill bit in 2023, having completed extensive surface exploration in 2022 consisting of soil & rock sampling, geological mapping, IP geophysics, and a 9-hole drill program.
The Company’s management team brings significant exploration experience through the discovery and development of numerous precious metals projects worldwide.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. Any securities referred to herein have not and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws of an exemption from such registration is available.
Disclaimer for Forward-Looking Information
This news release contains certain information that may be deemed “forward-looking information” with respect to the Company within the meaning of applicable securities laws. Such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information includes statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.
Although the Company believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by its nature, forward-looking information involves assumptions and known and unknown risks, uncertainties and other factors which may cause our actual results, level of activity, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; the Covid-19 pandemic; adverse industry events; the receipt of required regulatory approvals and the timing of such approvals; that the Company maintains good relationships with the communities in which it operates or proposes to operate, future legislative and regulatory developments in the mining sector; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and generally; the ability of the Company to implement its business strategies; competition; the risk that any of the assumptions prove not to be valid or reliable, which could result in delays, or cessation in planned work, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company’s expectations, as well as other assumptions risks and uncertainties applicable to mineral exploration and development activities and to the Company, including as set forth in the Company’s public disclosure documents filed on the SEDAR website at www.sedar.com.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF HERCULES SILVER AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE HERCULES SILVER MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
[1] The historical drilling results are historical in nature and have not been verified by a Qualified Person; therefore, they should not be unduly relied upon.
[2] The reader is cautioned that rock chip samples are selective by nature and may not represent the true grade or style of mineralization across the Property.
