READ TIME: 7 MINUTES
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In this conversation, Chris Paul, CEO of Hercules Metals, discusses the company’s progress, challenges, and outlook for 2025. The interview covers topics such as insider ownership, share price performance, the history of the Hercules project, and the exploration strategy moving forward. Paul explains the reasons behind past exploration oversights, the company’s efforts to refine its drilling targets, and the significance of metallurgical results. Additionally, he provides insights into Hercules’ relationship with Barrick Gold, cost-cutting measures, and institutional investor engagement.
TL;DR
- 1. Hercules Metals’ exploration focus in 2025 is on vectoring in on higher-grade copper mineralization, refining its geological model, and conducting large step-out drilling to locate the porphyry core.
- 2. The company has significantly reduced drilling costs, claiming a 56% cost savings per meter in 2025 compared to 2024, following inefficiencies and high expenses in the previous year.
- 3. Barrick Gold’s involvement in the project extends to the highest levels, with CEO Mark Bristow taking a personal interest, signaling potential for a major copper district.
- 4. Selling pressure on Hercules Metals’ stock has been consistent since the discovery-driven peak, with Chris attributing it to profit-taking by retail investors rather than institutional exits.
- 5. The company has no immediate plans to raise capital, stating that its $12 million treasury is sufficient for the 2025 drill program unless an exceptional strategic opportunity arises.
Who is Chris Paul, and Why is He Leading Hercules Metals?
Chris Paul, CEO of Hercules Metals (formerly Hercules Silver), is a geologist with a background in mineral exploration in British Columbia, particularly in the Golden Triangle.
He previously co-founded Golden Ridge Resources, which made a copper porphyry discovery in 2017-2018. His journey to Idaho and eventual leadership of Hercules Metals stemmed from dissatisfaction with the permitting and political environment in British Columbia.
Paul’s involvement in Hercules began when he was introduced to the project while working with another company. According to Paul, Hercules was originally part of another company, which had an underperforming asset in Nevada. Paul and a group of investors negotiated the acquisition of Hercules for $375,000 in cash and stock, securing a 100% ownership with a 2% royalty. In late 2021, Paul took on the role of CEO, despite admitting he initially doubted whether he was the right fit for the job. Since then, he has focused on systematically exploring the property and advancing it towards a potential major discovery.
Insider Ownership and Incentives: Where Does the CEO Stand?
As of the latest company filings, insider ownership sits below 5%, with Paul personally holding approximately 9 million shares. He states that his cost base is low due to early-stage stock-based compensation and private placement participation. Notably, Paul spent $150,000 of his own money on legal due diligence before acquiring the project.
Despite the company’s declining share price—falling from approximately $1.60 to below $0.60 following an initial surge post-discovery—Paul has not been buying shares in the open market. He cites his already large holding and personal financial constraints as reasons, suggesting that further insider buying is unnecessary. Instead, he emphasizes his belief in the project’s long-term potential, stating, “I’m in this thing to make money off of hopefully a future takeout.” However, he acknowledges that many investors view insider buying as a sign of confidence and concedes that a lack of it may raise concerns.
When asked if he owns a royalty on the project, Chris Paul confirmed that he holds a 1% royalty on claims located to the east of the main project area, which were originally staked before he became CEO. He explained that these claims were vended into the company as part of an early transaction, and the royalty was part of his compensation structure. The company has the right to buy back half of this royalty for $1 million, which would leave him with a 0.5% royalty. Paul emphasized that the core claims of the project, where the primary silver and copper targets are located, are subject to a separate 2% royalty, with 1% held by the original vendor.
Selling Pressure and Share Registry Composition
Hercules Metals’ stock is largely retail-held, which Paul attributes to increased volatility. He states that selling pressure is coming from various sources rather than a single entity. While some institutions hold shares, the company remains largely dominated by retail investors, a dynamic Paul says he hopes to shift towards more institutional backing in 2025.
The History of the Hercules Project: How Was a Copper Porphyry Missed?
Hercules Metals’ project area has a history of silver mining dating back to the late 1800s through 1920. Anglo Bema (a predecessor to Anglo American) conducted exploration on the property from 1965 to 1984, drilling 308 holes and outlining a small historical silver resource before exiting due to collapsing silver prices in the 1980s.
Despite two decades of exploration, previous operators failed to identify the copper porphyry system now at the center of Hercules Metals’ focus. Paul attributes this to their targeting of a single geological unit, the Hercules Rhyolite, where most silver mineralization had been historically identified. Additionally, he suggests that technological limitations at the time prevented effective deep exploration. For example, a 1987 induced polarization (IP) survey conducted on the property lacked the power to detect deeper sulfide mineralization. In contrast, modern IP surveys conducted in 2022 revealed a large anomaly at depth, which ultimately led to the copper discovery.
2025 Drilling Plans: What Is the Strategy?
Hercules Metals has not yet finalized its 2025 drill plan but anticipates beginning in late April or early May, depending on snow conditions. The company currently has $12 million in its treasury and states that it is not planning a capital raise before drilling begins, unless an exceptional opportunity arises.
Key objectives for the 2025 drill program include:
- – Vectoring in on Higher-Grade Mineralization: Paul states that drilling in 2023 was largely conducted in felsic volcanic host rocks with low iron content, which is suboptimal for copper mineralization. The company now plans to target iron-rich host rocks, which, based on internal modeling, may yield higher copper grades.
- – Defining the Potassic Core: The center of the copper porphyry system has yet to be found. The company believes that it lies deeper than previously drilled holes and intends to conduct large step-out drilling to locate it.
- – Testing the Southern Flats and Eastern Block Zones: These areas, located to the southeast of previous drilling, are now considered highly prospective due to geophysical and geochemical indicators.
The company has renegotiated its drilling contracts to reduce costs, claiming a 56% reduction in per-meter drilling expenses compared to 2024. However, Paul acknowledges that drilling costs in 2024 were significantly higher than expected, in part due to contractor inefficiencies.
Metallurgical Considerations: Copper, Molybdenum, and Silver Recoveries
Preliminary metallurgical testing reported a 24% copper grade in concentrate, slightly below the 25-28% range preferred by smelters.
Phase two testing is underway to improve both concentrate grade and recovery. Molybdenum recoveries in early tests were low, with some holes (notably hole 20) showing elevated molybdenum values. The company states that it is uncertain whether molybdenum will be a credit or a potential metallurgical challenge. Silver, associated with Jurassic-age mineralization, has shown recoveries of up to 86% after additional leaching steps to remove manganese interference.
Relationship with Barrick Gold: How Involved Is the Major?
Barrick Gold made a strategic investment in Hercules Metals, and according to Paul, the company is actively engaged in the project. He claims that Barrick’s involvement reaches the highest levels, including CEO Mark Bristow, who has personally taken interest in the project. Paul states that Barrick’s primary focus is large-scale copper opportunities and that they believe the district could host multiple porphyry deposits.
Hercules Metals maintains control over exploration decisions but states that it regularly consults with Barrick’s technical team. Paul notes that Barrick has pushed for larger step-out drilling in 2025, arguing that systematic, wide-spaced drilling is the most effective way to define a major deposit.
Marketing and Institutional Outreach
Hercules Metals aims to increase institutional ownership in 2025. Paul states that institutional marketing efforts will include conference attendance (excluding PDAC, which he will miss due to family commitments) and virtual meetings.
The company is also working on “big things” behind the scenes, though he declined to provide details.
Financials and Executive Compensation
For 2025, according to Paul, Hercules aims to keep general and administrative (G&A) expenses low, though no specific target has been disclosed.
The company’s compensation structure includes share-based incentives, with a significant portion of stock options granted to geologists as part of talent acquisition.
Paul received a one-time bonus in 2024, approved by the board, but states that future bonuses will be performance-dependent.
Hercules Metals CEO Interview With Chris Paul
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