Hercules Metals Corp V.BIG

sub-economic values

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Hercules Silver (BIG.V)

Hercules Silver (BIG.V) lit up trading screens last October when the company tagged an impressive 185 Meters of 0.84% Cu, 111 ppm Mo and 2.6 g/t Ag at their flagship Hercules Property in western Idaho. Another feeding frenzy ensued when mining colossus Barrick increased its stake in the exploreco from 2.7% to 12%.

All told, Hercules Silver racked up gains of roughly 500%, at its peak on the heels of this 185-meter discovery hole.

Boasting a lofty market cap in the neighborhood of $319M in the sessions leading up to the final trade of 2023, expectations surrounding the next round of assays out of Hercules were high (big understatement). Too high for what the company was ultimately able to deliver in a 450-meter stepout hole released on January 2, 2024 - Hercules Silver Drills 161 Meters of 0.45% Cu, 148 ppm Mo, 4.4 g/t Ag, including 79 Meters of 0.53% Cu, 7.3 g/t Ag in 450 Meter Step-Out.
 

It can be argued, rationally, that these are early days in the exploration cycle for a project of this scale (there appears to be a very large mineralized structure lurking in these subsurface layers). Quoting this Jan. 2 press release regarding a recent round of geophysics...

"A new property-wide deep-penetrating IP survey demonstrates that the 2022 anomaly represents just a small part of a much larger, 4 kilometer long, potentially zoned system which largely remains to be tested."

Early days, perhaps, but the market's reaction to these disappointing (sub-economic) values may create some overhang for those who bought near the highs. There's also a lots of in-the-money warrants which could generate additional selling pressure.