'Pure Silver' Co. Notches More High-Grade Results in Golden Triangle

Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) announced more high-grade results from its step-out drilling in the Wolf Vein of its Kitsault Valley project in British Columbia's Golden Triangle, leading one newsletter writer to call the stock's entry point "a gift" to investors.

The company said hole DV23-375 intersected 461 grams per tonne silver equivalent (g/t Ag Eq) over 26.99 meters, including 2,260 g/t Ag Eq over 0.5 meters from an 81-meter step-out.

"A decidedly better chart than has been experienced by the average resource explorer, DV's still shows the share price down by about a third from its earlier 2023 high," The National Investor editor Chris Temple wrote in an update on Monday. "This is as 1. the news has just kept getting better on the way to a substantial resource upgrade I think is coming before too long, and 2. Hecla has been upping its stake in DV shares."

Dolly Varden announced last week that major Hecla Mining Co. (HL:NYSE) has upped its stake in the company by CA$10 million to bring its ownership to 15.7% of DV.

In DV's chart (at left), "this pullback and water-treading since midyear, I.M.O., is a gift, allowing us a better entry point," Temple wrote.

What do those grades mean? According to the Independent Speculator, 150 g/t through 350 g/t Ag is average grade, while over 350 g/t is considered "high grade."

"I should stress that these are not international standards set by some geological authority," researcher Lobo Tiggre wrote on the site. "These are my numbers based on what I've seen in the field. More important is that . . .  these numbers are just a starting point."

The Catalyst: Consistent, High-Grade Silver Mineralization

The Kitsault Valley project includes the Dolly Varden silver property and the Homestake Ridge gold-silver property. The combined 163-square-kilometer project hosts an indicated resource of 34.7 million ounces silver (Moz Ag) and 166,000 ounces gold (Au) and inferred resources of 29.3 Moz Ag and 817,000 ounces.

The company completed a total of 51,454 meters of drilling in 115 holes at both the Dolly Varden and Homestake Ridge areas – nearly 24,000 of those meters in the Dolly Varden property.

Hole DV23-375 also intersected 296 g/t Ag, 1.68% lead (Pb), and 3.01% zinc (Zn) over 26.999 meters and 1,475 g/t Ag, 10.65% Pb, and 12% Zn over 0.5 meters.

Infill hole DV23-379 returned 287 g/t Ag Eq (247 g/t Ag, 0.4% Pb, and 0.73% Zn) over 18.21 meters, including 1,170 g/t Ag Eq (1,125 g/t Ag, 0.14% Pb, and 1.09% Zn over 0.5 meters, the company said.

Bob Moriarty of 321gold.com has been a shareholder of Dolly Varden's for years. He recently told Streetwise Reports that when it comes to silver, the company has made "incredible progress."

"The results we are seeing from the Wolf Vein continue to demonstrate depth continuity of the high-grade silver mineralization as well as an increase in base metal content," said Dolly Varden President and Chief Executive Officer Shawn Khunkhun. "Drill hole DV23-375 has extended the plunge length to over 950 meters with increased thickness of the potentially underground bulk-mineable mineralization, and it remains wide open for expansion. With over 70 drill holes remaining to be assayed and announced, we eagerly await their results."

Hole DV23-375 was an 81-meter step-out from drill hole DV22-320, which intersected 321 g/t Ag over 12.85 meters and 50 meters below DV23-268, which intersected 381 g/t Ag

over 29.34 meters, Dolly Varden said.

"Wolf Vein mineralization has consistent, high-grade silver mineralization within a wide multi-phase vein breccia within a northeast-southwest oriented epithermal vein system," the company said in a release. "The mineralization and alteration encountered at the Wolf Vein system is becoming wider in the southwest step-outs, and the dip of the system is steepening at depth."

'Dolly Varden Is Pure Silver'

Bob Moriarty of 321gold.com has been a shareholder of Dolly Varden's for years. He recently told Streetwise Reports that when it comes to silver, the company has made "incredible progress."

"They've had a lot of resources. Their drill results are spectacular, and I think silver is going to be the most attractive metal for investors in the near term," Moriarty said. 

Analyst Geordie Mark of Haywood Capital Markets has rated DV a Buy with a CA$2 per share target price. He wrote that "now is the right time for leverage in precious metals through investment in Dolly Varden silver on 2023 results, and the upside potential to be germinated in the 2023 program."

Analyst Geordie Mark of Haywood Capital Markets has rated DV a Buy with a CA$2 per share target price. He wrote that "now is the right time for leverage in precious metals through investment in Dolly Varden silver on 2023 results, and the upside potential to be germinated in the 2023 program."

"Never has this area laid witness to the scale of exploration in such an integrated fashion with an intellectual data set that affords better insights into system morphology, structural control, and genesis with the work on known systems expected to lead to new discoveries," Mark wrote.

Rick Mills wrote in his Ahead of the Herd newsletter in August that initial results from 2023 were already showing "high-grade mineralization."

"More encouraging assays, perhaps exceeding those from last year, along with new discoveries, should no longer be a surprise," Mills wrote.

Research Capital Corp. analyst Stuart McDougall noted in a research note that Dolly Varden is well-financed to advance Kitsault Valley forward. He rated the stock a Speculative Buy with a CA$1.35 per share target price.

Moriarty compared the Kitsault Valley project to Eskay Creek, which historically produced 160 million ounces (Moz) Ag and 3.3 Moz gold (Au).=

"Dolly Varden is pure silver," Moriarty said.

Ownership and Share Structure

Dolly Varden reports a number of institutional investors.

The company reports that Fury Gold Mines Ltd. (FURY-T) owns 22%, Hecla Mining Co. (HL:NYSE) owns 15%, and Eric Sprott owns 9%.

Other institutions own another 47%. The rest is with retail investors.  

It has 255 million shares outstanding with a market cap of CA$198.65 million. It trades in a 52-week range of CA$0.56 and CA$1.24.

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Important Disclosures:

1. Dolly Varden Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Dolly Varden Silver Corp.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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