Will Hercules be a strong asset for Bald Eagle Gold?
I was all geared up to write a story about a junior gold miner today based on the company name but upon digging a little deeper I found that after a couple of transactions it’s now a silver play. Correspondingly, I was prepared to take another stab at gold technicals and the price impact on the underlying equites. Instead, we are now talking about silver where my trading history in silver stocks is less than stellar to say the least. When silver got caught up in the Reddit meme stock frenzy, I thought I’d take advantage of the volatility by buying the underlying stocks and selling at, or even in the money covered calls for huge premiums. I collected those huge premiums but proceeded to learn a valuable lesson on how fast the liquidity in meme stocks can dry up and how hard they can fall. In fact, the silver names I participated in fell much further than where they were trading before the meme frenzy took hold leaving me well down on my overall trade, despite all the call premiums I collected. With that said, I still believe in the underlying fundamentals of the commodity itself and have confidence that as an industrial metal that is part of the technology revolution, silver will soar again. I just don’t know how long I’ll have to wait to get back to break even.
But enough about me, let’s have a look at Bald Eagle Gold Corp. (TSXV: BIG). As noted above, the Company came into being in March, 2021 with the completion of the qualifying transaction and subsequent amalgamation of CX One Inc. and Frontera Gold Inc. This resulted in the principal asset of the Company being a 50% interest in the Hot Springs Gold project located between the Battle Mountain and Getchell Comstock Gold-Trend in north-central Nevada. However, it didn’t take long for Bald Eagle to diversify its holdings substantially when on April 26, 2021, it announced a binding letter of intent to acquire the right and title to the Hercules Silver Property located in Washington County, Idaho. The transaction to acquire the 100% interest in the Hercules Property closed on August 10th followed by the sale of its 50% joint venture interest in the Hot Springs property for US$1.27 million in early October. And voila, Bald Eagle Gold is now a prospective silver play.
A subsequent transaction in November, 2021 resulted in the Company acquiring a 100% interest in the Leviathan Property located immediately east of and adjoining the Company’s Hercules silver property in Idaho. The deal expands Bald Eagle’s total land position to 2,209 acres in this highly prospective area. Which begs the question, what makes this area highly prospective? Well let me tell you.
Six mineralized areas have been identified along the 10,000 feet (3,048 metres) of Hercules rhyolite underlying the length of the Property. Following earliest drilling (1965) near the Hercules Adit, surface drilling, guided by soil geochemistry, made it clear that anomalous silver greater than one ounce per ton is widespread in the Hercules rhyolite. Between 1965 and 1988 work by eight companies resulted in thirteen drill programs and about 1,045 feet (319 metres) of lateral underground advance. The drill programs produced 28 core holes, 43 underground percussion holes and 236 reverse circulation rotary holes. Select results from the Hercules Adit Area of the Property, include:
Source: Bald Eagle Gold Corp. website
The addition of the Leviathan property provides a much larger land package of prospective ground on which to explore and expand the currently known mineralization. Historical surface sampling indicates that the silver (+/- lead-zinc) mineralization on the Hercules Property extends onto the northern portion of Leviathan. Significant copper mineralization is also present within the volcanic rocks at surface on Leviathan, suggesting a potential porphyry copper system may be present at depth. Highlights from the Big Cut prospect located in the southeast of the property include:
Source: Bald Eagle Gold Corp. Nov 16, 2021 Press Release
The Company’s stated strategy is to build precious metal resources in recognized mining‐friendly jurisdictions and the Fraser Institute ranks Idaho ninth for exploration and mining investment out of 77 locations around the world. So that box is ticked. Disposition of the Hot Springs gold working interest increases the available capital pool to roughly C$2 million to begin exploration of the Hercules/Leviathan property. With a current market cap of just over C$10 million, a few good drill holes could make for some exciting times at Bald Eagle Gold Corp.
Dean Bristow has been involved in the North American Crude Oil business for 30 years including Energy Trading, Infrastructure Development, Transportation, and Refining. During that ... <Read more about Dean Bristow>