Is This Silver Stock A Potential Gold Powerhouse?
Contributed Opinion

Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX), known for owning one of Canada's historic highest-grade silver mines, recently released gold assay results that are making investors take notice. With grades reminiscent of the nearby legendary Eskay Creek Mine, is it time for Dolly Varden Silver to change its name to reflect a growing gold endowment?

Let's dig in.

Highest-Grade Silver, Meet High-Grade Gold

The Dolly Varden Silver Mine, named after a Charles Dickens heroine, produced some of the highest-grade silver in Canada from 1919 to 1921. Even Herbert Hoover was involved before becoming President. The mine is located near Skeena Resources' revived Eskay Creek Project, which was both Canada's highest-grade gold mine and the world's 5th largest silver producer in its heyday.

Fast forward to 2023, and Dolly Varden Silver's latest drill results from the adjacent Homestake Project, acquired from Fury Gold Mines in 2021, are showing Eskay Creek-like gold grades to go along with the silver. Highlights include:

• 79.49 grams per tonne gold (g/t Au) and 60 g/t silver (Ag) over 12.45 meters (m) within 66.5m of 15.26 g/t Au and 20.05 g/t Ag (hole DV23-389)
• 2.68 g/t Au and 20 g/t Ag over 57.7m (hole DV23-399)

These results come from a 350m gap between the Homestake Main and Homestake Silver zones that is quickly becoming a priority target area. If there are a few more holes like this, Dolly Varden Silver may need to put "gold" in its name.

Combined Silver-Gold Resource Base

Dolly Varden Silver's last resource estimate was in 2019, but the company has spent over CA$40M on exploration since then. The current silver equivalent resource is around 140 million ounces silver equivalent (Moz AgEq) using US$20/oz silver. However, with the growth of the gold component, the company also stated a gold equivalent resource of about 1.5 Moz AuEq at US$1650/oz gold.

An updated resource estimate is expected after the fully funded 2024 drill program wraps up. Considering the Homestake Project cost CA$65M in 2021, the current ~CA$190M market cap looks reasonable based just on the existing resource base. But the market clearly expects more gold to come.

Tight Share Structure Could Ignite

One factor that could really ignite Dolly Varden Silver shares is the tight ownership structure. Institutions own 47%, Fury Gold Mines owns 22% from the Homestake deal, Hecla Mining owns 15% with an eye on 19.9%, and Eric Sprott owns 9%. This leaves a float of just 7% for retail investors.

If generalist investors return to the precious metals space, Dolly Varden Silver's low float could lead to an outsized move as buyers chase limited shares.

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. Bob Moriarty: I, or members of my immediate household or family, own securities of: Dolly Varden Silver Corp. My company has a financial relationship with Dolly Varden Silver Corp. I determined which companies would be included in this article based on my research and understanding of the sector.
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