Hammer was the name of a presumed convict who was used as labor by Jed Stone and became mutated from the effects of the radioactive ore in the mountain. His name is discovered when picking up his disembodied head.
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He is encountered in a chamber after moving on from the spider mutant's pen. His head is on the table next to the hole leading to the Spider mutant's chamber. Carnby can pick up the head and throw it down the hole that he came from, making Hammer's body jump down.
