Hercules
About
100%-owned large (100 square kilometers), district-scale and underexplored project located in the prolific and historic Walker Lane Trend in Nevada, USA, which hosts such notable mines as Round Mountain, Castle Mountain, Sterling, and Mesquite.
Hercules hosts 5 previously drilled low-sulphidation epithermal gold targets, all of which are permitted for additional drilling under a Plan of Operations. Multiple operators have drilled more than 300 holes with showings across the property and have encountered significant mineralization.
Project Highlights
Previous operators include Eclipse Mining led by Strikepoint CEO, Michael Allen, that drilled 40 holes from 2019-2021, prior to selling the project in a transaction that valued Hercules at approximately US$25 million.
Recent exploration drilling in 2020, led by Michael Allen, intersected shallow oxide-gold with broad zones of higher-grade mineralization, highlighted by 89.92 meters of 0.65 g/t Au and 12.51 g/t Ag (H20010). Results indicate the mineralization at Hercules is potentially similar to other large Walker Lane-hosted, low sulphidation epithermal gold-silver systems.
Historical drill results include highlights of 54.86 meters of 2.96 g/t Au starting at 59.44 meters (H1204), 75.29 meters of 1.00 g/t Au starting from surface (H835C), and surface channel samples of 16.80 meters of 1.78 g/t Au. Prior to 2020, there were over 200 historic drill holes which guided more recent exploration work in 2020 and 2021.
Recent exploration work compiled from more-recent drilling, IP and airborne surveys conducted between 2020 and 2021, has identified at least 45 undrillled targets to be advanced within the boundaries of Hercules, giving StrikePoint ample opportunity to make additional discoveries.
Acquisition details
On August 30, 2024, pursuant to the terms of a purchase and sale agreement with Elevation Gold Mining Corporation (“Elevation Gold”), StrikePoint Gold Inc. acquired the Hercules Gold – Silver Project (“Hercules”) for total consideration of CDN $250,000. On August 1, 2024, Elevation Gold, a Canadian public company, announced that it had obtained an order granting it creditor protection under the Companies’ Creditors Arrangement Act (“CCAA”). The sale of Hercules by Elevation Gold was determined to be acceptable under the amended and restated initial court order by the Supreme Court of British Columbia under the CCAA and was consented to by the court-appointed monitor of Elevation Gold as it was in compliance with the terms of the court order.
Elevation Gold had acquired Hercules on February 12, 2021, pursuant to a plan of arrangement with Eclipse Gold Mining Corp. (“Eclipse”) in a share-based transaction worth an approximate value of US $42.8 million.
Certain claims have reserved royalties to a maximum of 3%, with associated buydowns. A portion of the claims are under option with an annual payment of US $50,000 per annum to be made between 2025 and 2032.
Overview & Geologic Description
Hercules consists of 1,323 unpatented mining claims and 4 patented mining claims covering approximately 100 square kilometers of prospective Walker Lane geology located one hour from Reno, Nevada. The project is 20 kilometers east of the Comstock Gold Mine which historically produced 14 million oz of gold.
Hercules is a low-sulphidation epithermal gold target. Potentially economically significant gold grades/thicknesses have been drilled by multiple operators over a large area suggesting a strong gold mineralizing system. Drilling has largely been focussed on the northern portion of the property focussed on 5 target areas: Hercules, Cliffs, Loaves, Northeast and Rattlesnakes.
Extensional structures appear to have been the primary conduits along which gold and silver mineralization was emplaced into the volcaniclastic sequence on the Hercules Gold Project. Broad zones of disseminated gold mineralization appear to have been formed where the metal bearing structures have intersected permeable units (e.g., block-and-ash tuff) in the volcaniclastic sequence. Mineralization has largely been oxidized with local relicts of transitional mineralization remaining.
The project has a Plan of Operations drill permit in place on the northern portion of the property, and two Notice of Intent drill permits on the southern portion of the property.
Historically, ownership of the property was divided between multiple operators, hindering exploration. Going forward, StrikePoint Gold will be able to explore the property without boundary constraints.
(Length is sample length; true thickness was estimated to be between 60% and 90% of sample length – per prior operator news releases)
Recent Exploration Activity
Work conducted by Eclipse from 2020 to early 2021, included mapping, geophysical surveys, chip sampling, and a reverse circulatory (“RC”) drill program throughout the project.
In March 2020, a rock chip sampling program over a strike length of approximately 260 meters were reported, indicating the presence of a potential high-grade core to the Hercules target, highlighted by rock sample 483737 containing 66.0 g/t Au and 333.0 g/t Ag and sample 483736 assaying 29.5 g/t Au and 880 g/t Ag. Additional sampling on the Hercules Target identified a broad zone of gold mineralization in which gold values are associated with widespread silicification.
On June 10, 2020, Eclipse reported on an its initial phase of drilling at Hercules, totaling 3,271 meters over 12 RC drill holes, with all targets containing gold mineralization and 11 of these drill holes intersecting significant oxidized gold mineralization. The results of this initial program were highlighted by hole H20009 assaying 0.54 g/t Au and 4.78 g/t Ag over 74.68 meters; hole H20010 assaying 0.65 g/t Au and 12.51 a/t Ag over 89.92 meters; and hole H20012 assaying 0.59 g/t Au and 6.74 g/t Ag over 59.44 meters. These initial encouraging results identified a shallow oxide-gold system with broad zones of higher-grade mineralization that appeared to strengthen towards the south. The initial drilling campaign by Eclipse identified several open-ended targets which suggested Hercules was open for expansion both along strike and at depth.
Eclipse announced the results of an induced polarization (“IP”) survey performed in July 2020, which demonstrated a good correlation between zones of silicification in outcrop and drilling and resistive features. The interpretation indicated the presence of two parallel and continuous NNE-trending, steeply west-dipping structures named the Hercules Structural Zone (approximately two-kilometers in length). This zone passes through and to the west of the main Hercules Target and may represent a feeder structure for mineralization. In addition, a large resistive feature at the southern end of the survey suggested a connection at depth between the Cliffs and Hercules Targets. This feature appears to be both open to and increasing in thickness to the south. The distance between the Cliffs Target and the Hercules Target is approximately 600 meters.
A second phase of drilling at Hercules Gold Project in the second half of 2020 focused on the Cliffs and Hercules Targets, testing a new geological model. This second phase consisted of 7,320 meters of RC drilling over 28 holes.
Hercules Target
Phase 2 drilling appeared to confirm the presence of a high-grade, near surface core of mineralization at the Hercules Target, as well as the new geological model. Results also suggest additional discoveries may be made in the largely untested overburden-covered area between Hercules and Cliffs. Phase 2 drilling at the Hercules target was highlighted by 30.48 meters of 1.63 g/t Au and 18.27 g/t Ag (H20031).
Of interest, the second phase of drilling also included one hole (H20019) drilled between the Hercules and Cliffs Target identified by the previous geophysical work. The hole identified two zones of low-grade mineralization (including 18.29 meters of 0.33 g/t Au and 8.45 g/t Ag) which suggested additional discoveries may be made in the largely untested overburden-covered area between Hercules and Cliffs
Cliff Targets
Phase 2 drilling at Cliffs successfully demonstrated that the proposed geological model was correct. Highlights from the phase 2 drilling included and 39.62 meters of 1.12 g/t Au and 5.38 g/t Ag (H20040).
In addition, the drilling revealed new gold mineralization further to the east that is untested by drilling. When combined with results at the Hercules showing, where additional gold bearing structures are being found to the west, the target corridor of mineralization on the project is now thought to be widening.
Both the Hercules and Cliffs Targets remained open along strike, across strike, and at depth, particularly east of the Hercules Target where additional high-grade surface samples remain untested by drilling.
This includes the “Telephus Vein” where visible gold can also be collected at surface.
Following the acquisition of Eclipse, Elevation announced the results of a recently completed airborne geophysical survey in April 2021. The survey highlighted the structural framework at Hercules, providing support for the district-scale geological model. It also indicated the presence of an extensive and open-ended 13 kilometers long by 6 kilometers wide alteration zone trending northwest-southeast across the property that is coincident with known mineralization. Most importantly, the work identified at least 45 new targets for follow-up exploration and to be advanced.
Three targets were evaluated and two permitted for drilling.
At the permitted Sirens target historical intercepts of 38.10m grading 0.64 g/t Au (ending in 0.85 g/t Au) in hole BR08-06, and 25.91 m of 0.68 g/t Au (ending in 0.91 g/t Au) have been reported. Panned gold was collected at the Sirens showing.
At the Pony Meadows target gold was also panned near a historical working. Additional work is being completed prior to permitting at Pony Meadows.
A further site is permitted for exploration drilling, the Como Comets target is thought to be the extension of the past producing Como District held by Newmont Mining Corporation, through it’s subsidiary Fronteer Development USA. The Newmont ground is held entirely within the larger Hercules Gold Project.
Following the completion of the airborne geophysical survey in early 2021, further significant exploration work at Hercules was halted, by previous operators giving StrikePoint an opportunity to make meaningful advancements on the property.
The acquisition of Hercules in August 2024, at a minimal acquisition cost, gives StrikePoint a quality early-stage gold-silver exploration project in a Tier 1 jurisdiction with significant potential and drill ready targets across a large land package with many untested targets and known mineralization over a large area. StrikePoint is excited about the opportunity the Hercules Gold-Silver Project provides and continues to review all historical data available to guide future exploration work.
