My first takeaway from today's news release from Hercules Silver (TSX-V:BIG) is consistent with everything CEO Chris Paul and I discussed during our conversation last week. HER-23-26, the latest hole drilled into the Leviathan Porphyry intersected 100 meters of 0.76% Cu, 113 ppm Mo, within 461 meters of 0.4% Cu, 74 ppm Mo. Hole 26 terminated at 800 meters.
In hole 23-21, we actually began to see copper grades picking up again at depth with the final 114.88 meters grading .30% copper. Hole 21 got into a bland late intermineral porphyry in the middle of the hole. The increasing grades at depth in hole 21 add another layer to the Leviathan Mystery.
The results of hole 26 are consistent with the idea that the 'upper part of the porphyry is the best part of the porphyry'.
When the 'Leviathan' core looks like this we know it's going to grade well:
Holes 5, 21, and 26 all had this bornite-rich upper portion of the system. In hole 5 it ran 1.94% copper over 45 meters (within 185 meters of .84%), in hole 21 it ran .53% copper over 73 meters, and in hole 26 it ran .76% copper over 100 meters.
The consistent theme is copper grades improving to the west and north.
Purely based on the results of holes 5, 8, 11, 21, and 26 Hercules has found an interesting buried copper porphyry target. However, based on grades to date the results aren't compelling enough to warrant the C$300 or C$400 million market cap that BIG.V traded to late last year.
So what is BIG.V worth today and is the discovery story ruined?
The discovery story is FAR from ruined. In fact, it is probably more alive and well than ever before. Knee-jerk traders will assume the worst and sell into today's news thinking that the deeper copper porphyry mineralization is too low-grade for underground mining. However, the really interesting part of today's news release from Hercules is the commentary on the 3D IP.
The entire section on the 2023 3D IP Survey:
"The new large-scale IP survey carried out in late 2023 by Dias Geophysical Corporation reveals the presence of a much larger system in the lower plate than was previously recognized. Additional processing is underway to incorporate the 2022 high-resolution near surface data, which correlates well with the bornite-rich upper portion of the porphyry, with the new deep penetrating data, to generate a more robust inversion model over the entire Property. The new deep penetrating data shows an arcuate-shaped chargeability target which closely follows the trend of the Hercules Rhyolite in plan and roots into a vertical anomaly with coincident high conductivity (low resistivity) that may represent a potential early porphyry feeder intrusion."
Hercules did not publish the full 3D IP Survey data with today's news as they are still working to generate a more robust inversion model over the entire property.
Finally, there is another aspect of today's news release that should not be overlooked:
"A preliminary review of spectral data captured at 5-foot intervals reveals the presence of significant kaolinite alteration associated with hypogene bornite in the upper portions of the porphyry. Kaolinite occurs below the supergene weathering horizon and may be a function of hydrothermal argillic alteration which upgraded shallower parts of the system. Targeting shallower parts of the porphyry where the preservation potential immediately below the red conglomerate may be improved will therefore be a part of the focus going forward."
BIG shares are selling off on today's news as the bar was set high with market participants looking for 1%+ Cu grades over 100+ meter intervals. However, I believe the Hercules story is better than ever before.
The market got way ahead of itself in November at $1.62 (please refer to my November video when I explained why I exited my entire BIG.V position above $1.50), and now nearly a full $1.00 has been lopped off the share price. This is THE time to buy if you are a believer in the potential of the Leviathan Copper Porphyry discovery.
One thing we know for sure is that with $25 million in its treasury, and Barrick's technical team helping to fine tune the geological model and 2024 drill targeting, Hercules will be giving Leviathan its very best shot during the 2024 drilling season.
Please do your own due diligence and understand that a speculative exploration play like BIG.V can generate 50%+ drawdowns very quickly.
I was a buyer this morning at $.67, adding to shares I added after the last news release at $.72.