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Dolly varden Silver Junior Mining Precious Metals

Dolly Varden Silver Intersects 1,532 g/t Silver over 1.22 Meters at Wolf Vein, 94 Meters Down Dip

VANCOUVER, BC, Dec. 20, 2021 /PRNewswire/ – Dolly Varden Silver Corporation (“Dolly Varden” or the “Company“) (TSXV: DV) (OTC: DOLLF), is pleased to announce drill results from regional exploration and reconnaissance drilling at its 100%-owned Dolly Varden Project located near tidewater in northwestern British Columbia, with particularly encouraging results from the Wolf Vein, as well as the identification of large, new porphyry related copper-gold system.

At the Wolf Deposit, drill hole DV21-273 tested the southwest projection of the Wolf Vein, 94m down plunge from the current Mineral Resources, intersecting 1,532 g/t Ag, 0.44 g/t Au, 2.11 % Pb and 1.07% Zn over 1.22m core length within a brecciated sulphide-rich quartz vein hosted within a broader pyrite stockwork breccia zone of 17.50m averaging 214 g/t Ag and 0.47% Pb. The current NI 43-101 Mineral Resource Estimate hosts 3.83 million ounces of silver at 296 g/t in the Indicated category at Wolf. It is located approximately two kilometers northwest of the 25.0 million ounces of silver in the Indicated Category and additional 10.5 million ounces of silver in the Inferred category at Dolly Varden’s Torbrit Deposit.

In other regional exploration drilling, Dolly Varden’s technical team is highly encouraged by long intervals of stockwork quartz with strongly anomalous gold (>100 ppb) over wide intervals (up to 303 meters) along with silver and copper at the Western Gold Belt Area. Hosted within early Jurassic volcanic rocks, this style of stockwork and alteration is analogous to numerous alkalic gold-copper deposits and mines in British Columbia. The Company plans appropriate geophysical surveys for porphyry-style mineralization and subsequent follow-up drilling in this area.

“This high-grade silver intercept at Wolf demonstrates the excellent exploration and resource expansion potential on the Property. The next phase of exploration drilling will prioritize connecting our historic mines and current deposits of the Dolly Varden Trend with the deposits at Homestake 5.4km to the northwest along the Kitsault Valley Trend that comprise the recently announced proposed acquisition from Fury Gold Mines,” said Shawn Khunkhun, CEO of Dolly Varden Silver. “Additionally, the strong indicator of porphyry related gold-copper-silver style indicators potentially the most significant exploration breakthrough on the Property in years”.

A total of 10,506m in 31 diamond drill holes were completed at Dolly Varden during the 2021 field season. Results have been received for 10 holes that tested five regional exploration targets on the Property including the Wolf Vein extension and Western Gold-Copper Belt. Assays will be announced in the near future for the 21 holes completed at the high-grade Torbrit and Kitsol Silver Deposits. The 21 near-Resource holes were drilled as part of a two phase program with the objective of expanding Resources as well as upgrading current Inferred Resources to Measured and Indicated Classification.

The 2021 drilling at Dolly Varden initiated the Company’s two-year strategy to aggressively expand and upgrade the Torbrit Silver Deposit and multiple satellite zones with the objective of advancing Dolly Varden to be the next high-grade silver mine in British Columbia.

Hole IDFrom
(m)
To
(m)
Length
(m)
Ag (g/t)Au (g/t)Pb (%)Zn (%)
DV21-273302.00319.5017.502140.470.06
including303.18304.401.2215320.442.111.07
including311.85315.803.953280.120.520.83
*true width is estimated at 85% of core length, using angle to core from oriented core data.

Table 1: Wolf Extension Exploration drilling results

Hole DV21-273 is also significant as it tested the prospective Hazelton volcanic rock that underlies the sedimentary units of the Upper Hazelton for the Wolf Vein extension. Discovering that the strong potassic alteration associated with silver mineralization within the volcanogenic Torbrit Deposit continues beneath the sediment suggests that the mineralizing system continues to the west of the 4.5 km long surface alteration anomaly. This opens up exploration potential of the entire bottom of the Kitsault valley north of Wolf towards the Property boundary and onto Homestake Ridge.

Figure 1: Wolf Vein DV21-273 section, looking northeast (CNW Group/Dolly Varden Silver Corp.)
Figure 1: Wolf Vein DV21-273 section, looking northeast (CNW Group/Dolly Varden Silver Corp.)

“Intercepting silver mineralization associated with potassic alteration in the older volcanic rocks underneath the sediment package within the fold axis of a regional syncline gives our team further reason to drill test several geophysical anomalies identified along the northerly trend towards the deposits at Homestake Ridge”, explained Rob van Egmond, Chief Geologist for Dolly Varden Silver.

Wolf is the northernmost deposit that comprises the current Mineral Resources at the Dolly Varden Project. Modelling of the epithermal vein style deposit indicates a stepped vein system, offset by steep faults. The hanging wall of the deposit has strong barium signature and the veins contain barite and quartz. There are historic underground drifts at Wolf but no historic production was reported.

Figure 2: Wolf Vein Core from DV21-273 at 312m depth showing pyrite matrix breccia within quartz breccia (CNW Group/Dolly Varden Silver Corp.)
Figure 2: Wolf Vein Core from DV21-273 at 312m depth showing pyrite matrix breccia within quartz breccia (CNW Group/Dolly Varden Silver Corp.)
Figure 3: Location Map (CNW Group/Dolly Varden Silver Corp.)
Figure 3: Location Map (CNW Group/Dolly Varden Silver Corp.)

Western Gold-Copper Belt

On the Western side of the Kitsault Valley, three holes (DV21-267, 268 and 269) tested the Red Point target with structures related to a gold in soil anomaly within the southern end of the Western Gold belt quartz, sericite, pyrite (QSP) alteration zone. Drilling intercepted wide zones of stockwork veins with strongly anomalous gold, silver and copper mineralization within Hazelton volcanic rocks. Proximal to intrusive rocks, this wide zone mineralization is analogous to other alkalic copper-gold porphyry related systems in British Columbia. In the Golden Triangle, these deposits include KSM, Treaty Creek, Saddle (GT Gold), Red Chris and Snowfield.

This Western Gold Belt is located on the west side of the Kitsault valley and trends from near the Dolly Varden Mine northward for several kilometers towards Homestake Ridge. Intrusive-related QSP alteration is associated with zones of increased silica stockwork and multi-phased breccias with pyritic matrix. This style of alteration, mineralization and brecciation is also common at other higher grade deposits in the Golden Triangle, including Homestake Ridge and Ascot’s past-producing Premier and Big Missouri mines, as well as Goliath Resource’s recent discoveries west of Dolly Varden. Results are as follows:

Hole IDFrom
(m)
To
(m)
Length
(m)
Au
(g/t)
Ag
(g/t)
Cu
(%)
DV21-2671.55170.10168.550.13
DV21-26726.0026.650.650.3513
including79.0080.001.001.1524
including81.8083.001.200.9550.07
including168.00170.102.100.33100.41
DV21-2682.36186.80184.440.17
including66.0072.006.000.576
and192.06192.560.501280.94
DV21-2692.6585.0082.350.17
DV21-269127.00430.00303.000.15
including289.00290.121.121.1
including316.00317.001.001.12
*true width has not been determined as there is insufficient drilling to model the orientation of the broad mineralization and alteration zone

Table 2: Red Point – Combination, Western Gold Belt results

Figure 4: DV21-267, 268 and 269 section looking north (CNW Group/Dolly Varden Silver Corp.)
Figure 4: DV21-267, 268 and 269 section looking north (CNW Group/Dolly Varden Silver Corp.)
Figure 5: DV21-267 Gold bearing quartz stockwork and breccia veins (CNW Group/Dolly Varden Silver Corp.)
Figure 5: DV21-267 Gold bearing quartz stockwork and breccia veins (CNW Group/Dolly Varden Silver Corp.)

Medallion

Three holes were completed at the Medallion Prospect (DV21-264, 265 and 266) located at the southern end of the Project. Historic trenches and small adits explored narrow zones of veining within weakly altered volcanic rocks hosting silver, copper lead and zinc mineralization. No significant results were returned.

Syndicate

Diamond drill holes DV21-270 and 271 were drilled from the same setup as Medallion to test the Syndicate Target. A near-surface vein in DV21-270 returned 126 g/t Ag and 1.31 g/t Au over a core length of 1.10m.

TargetHole IDFromToCore Length
(m)
Ag (g/t)Au (g/t)
SyndicateDV21-27052.453.51.101261.31
SyndicateDV21-271No significant results
*true width has been estimated at between 80% to 90% of core length based on limited drilling for geometry modelling

Table 3: Syndicate results

Silver Horde

One drill hole tested the potassic alteration zone at Silver Horde, approximately 900m north of Wolf. It was collared in sediment cap rocks to test the volcanic units down plunge of previously encouraging drill results. Hole DV21-272 intersected two zones where diffuse sheeted veinlets were found carrying dark silver sulphosalts. The structure returned 9.0 meters core length averaging 126.7 g/t Ag within the volcanic host, plunging towards the axis of the valley syncline.

TargetHole IDFromToCore Length (m)Ag (g/t)
Silver HordeDV21-27241509.0126.75
including4142.51.5256
Silver HordeDV21-272202.52030.5249
*true width has not been determined as there is insufficient drilling to model the orientation of the diffuse sheeted veins

Table 4: Silver Horde results

Hole IDAreaEasting
NAD 83
Northing
NAD 83
Elevation
(m)
AzimuthDipDepth
DV21-264Medallion4671816168686514210-50203
DV21-265Medallion4671996168813457193-46341
DV21-266Medallion4672206169100444193-50501
DV21-267Red Point466637617247673556-50356
DV21-268Red Point466637617247673556-75425
DV21-269Red Point4666376172476735236-50430
DV21-270Syndicate466196617672145380-47493
DV21-271Syndicate466196617672145380-80107
DV21-272Silver Horde466760617456237755-50365
DV21-273Wolf4670936173630387120-55449

Table 5: Exploration portion of 2021 program: drill hole location data

Quality Assurance and Quality Control

The Company adheres to CIM Best Practices Guidelines for exploration related activities conducted on its Project. Quality Assurance and Quality Control (QA/QC) procedures are overseen by the Qualified Person.

Dolly Varden QA/QC protocols are maintained through the insertion of certified reference material (standards), blanks and field duplicates within the sample stream. Drill core is cut in-half with a diamond saw, with one-half placed in sealed bags and shipped to the laboratory and the other half retained on site. Third party laboratory checks on 5% of the samples are carried out as well. Chain of custody is maintained from the drill to the submittal into the laboratory preparation facility.

Analytical testing was performed by ALS Canada Ltd. in North Vancouver, British Columbia. The entire sample is crushed and a 500 gram split is pulverized to minus 200mesh. Multi-element analyses were determined by Inductively–Coupled Plasma Mass Spectrometry (ICP-MS) for 48 elements following a 4-acid digestion process. High grade silver testing was determined by Fire Assay with either an atomic absorption, or a gravimetric finish, depending on grade range. Au is determined by Fire Assay on a 30g split.

Qualified Person

Rob van Egmond, P.Geo., Chief Geologist for Dolly Varden Silver, the “Qualified Person” as defined by NI43-101 has reviewed, validated and approved the scientific and technical information contained in this news release and supervises the ongoing exploration program at the Dolly Varden Project.

About Dolly Varden Silver Corporation

Dolly Varden Silver Corporation is a mineral exploration company focused on exploration in northwestern British Columbia. The Dolly Varden Project consists of the namesake Dolly Varden silver property that hosts a unique pure silver mineral resource as well as the nearby Big Bulk copper-gold porphyry property. The Dolly Varden Project is considered to be highly prospective for hosting high-grade precious metal deposits, since it comprises the same structural and stratigraphic setting that host numerous other high-grade deposits (Eskay Creek, Brucejack).

Dolly Varden has recently entered into an agreement with Fury Gold Mines to acquire the Homestake Ridge Project adjacent to the current Dolly Varden property to consolidate the Kitsault Valley Gold-Silver mineralization trend into one large, high-grade precious metals project with further exploration upside potential. The Big Bulk property is prospective for porphyry and skarn style copper and gold mineralization similar to other such deposits in the region (Red Mountain, KSM, Red Chris).

Forward Looking Statements

This release may contain forward-looking statements or forward-looking information under applicable Canadian securities legislation that may not be based on historical fact, including, without limitation, statements containing the words “believe”, “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “potential” and similar expressions. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Dolly Varden to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward looking statements or information relates to, among other things, completion of the Offering, Exchange approval of the Offering, the use of proceeds with respect to the Offerings, the results of previous field work and programs and the continued operations of the current exploration program, interpretation of the nature of the mineralization at the project and that that the mineralization on the project is similar to Eskay and Brucejack, results of the mineral resource estimate on the project, the potential to grow the project, the potential to expand the mineralization, the planning for further exploration work, the ability to de-risk the potential exploration targets, and our beliefs about the unexplored portion of the property. These forward-looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.

For additional information on risks and uncertainties, see the Company’s most recently filed annual management discussion & analysis (“MD&A”), which is available on SEDAR at www.sedar.com. The risk factors identified in the MD&A are not intended to represent a complete list of factors that could affect the Company.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this news release.

Dolly Varden Silver Corp. Logo (CNW Group/Dolly Varden Silver Corp.)
Dolly Varden Silver Corp. Logo (CNW Group/Dolly Varden Silver Corp.)
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Breaking Dolly varden Silver Exclusive Interviews Junior Mining Precious Metals

Dolly Varden Silver – Size Meets Grade

Maurice Jackson:

Joining us for a conversation is Shawn Khunkhun, the CEO of Dolly Varden Silver Corp. It’s a great time to be speaking with you as Dolly Varden Silver has just expanded their footprint in the highly prospective Kitsault Valley trend located in the prolific Golden Triangle of British Columbia. Before we begin, Mr. Khunkhun, please introduce us to Dolly Varden Silver and the opportunity the company presents to shareholders.

Shawn Khunkhun:

Dolly Varden has just announced today that we are set to acquire Homestake Ridge from Fury. Up until this moment, Dolly Varden was a silver-focused company in the Golden Triangle with a mineral endowment of 44 million ounces of high-grade silver. What today’s announcement proposes, is Dolly Varden is going to have a shareholder vote. We’ve got support from one our larger shareholders, Eric Sprott, who has not only publicly given his support, but he’s actually signed up support and lockup agreements for this transaction.

Shawn Khunkhun:

We are looking to unify the Kitsault Valley trend, which is comprised of 7 known deposits along 15 kilometers of Hazleton Rocks in the Golden Triangle, of which  4 of these deposits are on the Dolly Varden side and 3  are on the Homestake Ridge side. The amalgamation would also dramatically increase our mineral inventory taking us from 44 million ounces of high-grade silver to 137 million ounces of high-grade silver equivalent. To look at it through a gold lens, we would be at over 1.8 million ounces of high-grade gold.

Maurice Jackson:

Now before we get into the details of the transaction, please acquaint us with the Homestake Ridge Project, which hosts a resource in the inferred and indicated category of both gold and silver, along with a PEA.

Shawn Khunkhun:

Homestake Ridge, looking at it based on their gold ounces, has about 900,000 ounces of gold, about 18 million ounces silver, or one could look at it through a gold lens of 1.2 million ounces gold equivalent or 93 million ounces silver equivalent. It’s a project that is situated in the Golden Triangle. It’s a project that is open at depth and along strike. And it’s a project that hosts some very, very impressive grades.

And some of the opportunities at Homestake Ridge are there are some high-grade areas that not only do you have 20, 30 gram per ton gold material, but you have it over wide intervals. There are some tremendous opportunities to take some of the inferred resources and move them along into the indicated category. But you’re probably going to have some big surprises there in that just as Dolly Varden saw last year at our Torbrit Mine, which is a silver-rich mine, there is a tremendous opportunity when you vector into the high-grade.

Shawn Khunkhun:

For example, our resource on our side of the property is 300-gram silver. We did some infill drilling last year and we were finding that the resources were understated, as we were finding 450 gram material over big wide intervals. I suspect those same opportunities are going to persist on the Homestake side of the trend.

But the real story here, is that there are 5.5 kilometers in between the two projects that have never been explored. And both companies independently had done some geophysical work that has both concluded in three large geophysical anomalies in between, so I suspect we’ll move from seven deposits potentially to 10 and counting.  We feel confident that there’s a huge, huge exploration upside before us.

Shawn Khunkhun:

I came into Dolly Varden in February 2020. This was a company that had $3 million in the bank. It had 44 million ounces in the ground and it had a $20 million market cap. Post this transaction, this is a $125 million company with 140 million ounces of silver equivalent in the ground, boasting an impressive treasury and with an experienced technical team that will continue to unlock discovery opportunities.

Maurice Jackson:

Now I have to ask you, sir, how were you able to acquire the Homestake Ridge? Could you walk us through the details of the transaction?

Shawn Khunkhun:

I think it was just one of these situations where when an M&A deal works for both parties, it’s the best. I really believe in business, how do you create win-win-win opportunities, whether it’s with our first nations partners, the Nisga’a, where we bring employment opportunities and they give us social license to do our exploration work.

Or whether it’s in the case of this M&A transaction where Fury is undervalued based on the incredible mineral endowment they have. And they’ve got 3 great projects in Canada, but the challenge with 3 great projects is how do you advance them all?  Therefore, what Fury Gold Mines will be doing is they’re partnering with us. Ivan Bebek, Fury’s chairman, wants to ride the upside in Dolly Varden stock. So we structured a deal where we allowed him to ride the upside by becoming a 37% shareholder.

Shawn Khunkhun:

Now that’s a lot of trust to place in an outside party. They signed escrow agreements so that their stock is held up longer than the traditional hold periods. And there are all sorts of other parts of the investor rights agreement that are quite favorable for Dolly Varden shareholders, but they’re able to ride in the upside. As this project gets re-rated because it’s now got scale and there are the obvious synergies when his shares become re-rated and as we move into the latter stages of a precious metals bull market, these shares are going to be worth a lot more than 60 cents a share. And there was a pretty meaningful cash component to the deal as well. Dolly Varden is parting with $5 million worth of cash that Fury now can then take to advance either Eau Claire or Committee Bay.

Maurice Jackson:

Now we’ve covered the current resources. What can you tell us about further exploration upside potential?

Shawn Khunkhun:

The key is, so we have a northern property, northern deposit called Wolf, which is nearby Torbrit, which is the big granddaddy, 50 million ounce silver discovery on our property. Two kilometers away you have the Wolf and there’s a tremendous two-kilometer opportunity between Torbrit and Wolf.

Now going north from Wolf, you’ve got South Reef, which is Fury’s southern-most project. The big exploration opportunity is in the five and a half kilometers that lie in between South Reef and Wolf. I haven’t had the incentive to drill north. I’m not going to be positioning my drill rigs going on to Fury’s ground, defining mineral inventory on their side of the property. Likewise, Tim Clark and the team at Fury weren’t going to be drilling south. Now that we’ve unified, now that there’s 100% interest in one entity, that is going to be a huge area of focus going forward.

Maurice Jackson:

Now to coincide with this upside potential. How will the addition of the Homestake Ridge Project impact infrastructure?

Shawn Khunkhun:

There was a PEA that was produced that looked at one mill to develop the project at Homestake Ridge. The obvious synergy is for the company to release a PEA where you’ve got one mill, two projects. So from CAPEX to exploration to development, there are tremendous synergies by having one entity. And then I think as we are demonstrating that we are the lead consolidator in the area and if we have the hub, the mill will attract other projects that are in the area that don’t have the capital, or maybe not large enough as a standalone operation, they will be coming into the Dolly Varden Mill.

Maurice Jackson:

By consolidating the region Dolly Varden Silver now has a commanding land position at the southern tip of the Golden Triangle. But there’s more to the transaction. You’ve added some icing on the cake by merging the synergies and expertise from Fury Gold Mine’s technical team as well.

Shawn Khunkhun:

Thank you. No, and it’s not just technical, you’re absolutely right. But you know, Tim Clark, his capital markets and his banking contacts, Tim, as a CEO of Fury, he spent a career in the precious metals business. He’s got a Rolodex of contacts. Tim’s rolling up his sleeves, he’s coming on the board. In addition to having Michael Hendrickson, who is a very, very talented exploration geologist joining our board and working together as a group to unlock the true potential with the capital market’s expertise, with the technical expertise, we already had a lot of depth on the technical side, right from the top with Rob McLeod, Rob van Egmond, Jodie Gibson, Ryan Weymark, Andrew Hamilton’s just joined the team. And then we’ve got this new generation of project managers, Amanda Bennett. We’ve got a new gentleman joining our team here imminently, Joaquin.

Shawn Khunkhun:

We’ve just got, this is not going to be set out to consultants. This is in-house where the incentives are aligned with shareholders. And I’ve been through projects in the past where you have strong teams where the incentives are aligned with shareholders and it produces the best results. And we’ve got first-class people from even looking at this transaction, how it was put together from our banking advisors at Haywood to our legal counsel at Stikeman, I’m just floored and honored to work with just a high caliber of people. I’ve got a tremendous partner in our CFO, Ann Fehr. We’ve got a supportive, active board. I’m not going to mention every board member, but I want to thank our chairman, Darren Devine. We’ve just got a tremendous opportunity. It’s a great culture. It’s a culture that wants to grow, that wants to win. And now we have a platform and with size and scale that is going to attract larger investors.

I’ve listened to investors, I’ve gone out into the world. They told me to consolidate. They told me to get bigger. I’ve done it. And we’re just getting started.

Maurice Jackson:

Now before we leave the Golden Triangle, let’s visit the Dolly Varden Silver Project, which conducted a 10,000-meter drill program, which was a 50/50 split between infill and expansion drilling on the high-grade Torbrit Deposit. Any updates for us and when we might expect to see some results?

Shawn Khunkhun:

The labs have been extremely backed up in this part of the world. I’m anticipating results imminently and will continue to report results going into Q1. We allocated about 35% of our meters to exploration and we allocated about 65% of those meters in and around known resources. I would envision putting out two result-oriented press releases, one on exploration drilling, and one on resource expansion and extension drilling. Last year, we were extremely successful. A year hasn’t gone by where Dolly Varden hasn’t had dual success. I anticipate that to be the case, but what we’ve done here with this transaction is a material change to our mineral inventory definitively. And so I look forward to following up on exciting discoveries and drilling them out. But this is a real shot in the arm in terms of going from 44 million ounces to 140 million ounces. It’s quite a feat.

Maurice Jackson:

It certainly is. All right, switching gears, sir. Let’s look at some numbers. Please provide us with the capital structure for Dolly Varden Silver.

Shawn Khunkhun:

We currently have 130 million shares. Assuming our shareholders vote for this transaction, we’re going to issue 76 million shares to Fury. Again, they’re an insider. They’re locking up that stock. They’re riding this precious metals market with us, and they’re going to help us extract maximum value from this opportunity. If the transaction is supported, Dolly Varden Silver Corp will go to 207 million shares. But again, that’s 37% held by Fury. That’s 37% held by precious metal institutional investors, some of them are 9.9% shareholders, that’s 11% Eric Sprott, 8% retail. In addition, Hecla, which is a 10% shareholder has an opportunity to do a top-up. So they have a participation right. If Hecla exercises their participation right, they will come in for 9 million shares and they will resume having a 10.5 % percent ownership. Which coincidentally nets out the cash component of the transaction.

Maurice:

Now, before we close Mr. Khunkhun, what would you like to say to shareholders?

Shawn Khunkhun:

I came in in year one in 2020. We had a great market and we raised $27 million in a non-dilutive way. We put money in the ground. We started growing the deposit and saw an opportunity to transform the company. There were opportunities to transform the company outside of our region, we chose to expand our footprint next door, which now gives us a commanding position at the southern tip of the Golden Triangle. We’re a prominent player in the area now. 

And we shouldn’t ignore the catalysts’ In the region such as Pretium being subject to a takeover bid from Newmont. We saw the big takeout last year with GT Gold. This is an area that the majors want to be and we’ve positioned our shareholders with a commanding position at the southern tip of the Golden Triangle.

Shawn Khunkhun:

But beyond that, this is what I want to leave the readers with. There are a lot of gold projects that have ounces in the ground in North America. There are a few projects that have ounces in the ground in North America that are silver. There are only 14 companies that have both gold and silver of this size. None of them have it at this grade. We are number one. We are number one for size meets grade in precious metals.

Shawn Khunkhun:

You missed nothing Maurice. You got it all covered.

Maurice:

Mr. Khunkhun, for someone that wants to learn more about Dolly Varden Silver, please share the contact details.

Shawn Khunkhun:

Please visit our website, www.dollyvardensilver.com. You can follow us on Twitter @silvervarden, or you can call us toll-free at +1 800-321-8564.

Maurice:

Mr. Khunkhun, it’s been a pleasure speaking with you. Wishing you and Dolly Varden Silver the absolute best, sir.

And as a reminder, I’m a licensed representative for Miles Franklin Precious Metals Investments, where we provide several options to expand your precious metals portfolio from physical delivery directly to your home, off-shore depositories secured by Brinks, and precious metal IRAs. Call me directly at 855-505-1900 or you may email, maurice@milesfranklin.com. And finally, please subscribe to provenandprobable.com, where we provide mining insights and bullion sales. 

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Dolly varden Silver Junior Mining Precious Metals Uncategorized

Dolly Varden Silver and Fury to Consolidate Emerging Canadian Silver-Gold District in the Golden Triangle

VANCOUVER, BC / ACCESSWIRE / December 6, 2021 /Dolly Varden Silver Corporation (“Dolly Varden“) (TSXV:DV) (OTCQX:DOLLF) and Fury Gold Mines Ltd (“Fury“) (TSX:FURY) (NYSE American:FURY) are pleased to announce that the companies have entered into a definitive agreement dated December 6, 2021 (the “Purchase Agreement“) pursuant to which Dolly Varden will acquire from Fury, through the acquisition of Fury’s wholly-owned subsidiary, a 100% interest in the Homestake Ridge gold-silver project (“Homestake Project“), located adjacent to the Dolly Varden Project (“DV Project” and together with the Homestake Project, the “Kitsault Valley Project“) in the Golden Triangle, British Columbia (the “Transaction“).

The Homestake Project hosts a resource estimated to contain 165,993 ounces of gold and 1.8 million ounces of silver in the Indicated category and 816,719 ounces of gold and 17.8 million ounces of silver in the Inferred category (refer to further resource disclosure at the end of this release) within a 7,500 hectare land package located contiguous to and northwest of the DV Project. The close proximity of the deposits that make up the current mineral resource estimates, combined with common infrastructure in the region, is expected to generate substantial co-development synergies as these deposits are advanced in combination. The Transaction values the Homestake Project at CAD$50 million for which Dolly Varden will pay $5 million in cash and issue 76,504,590 Dolly Varden common shares to Fury, as further described below.

Transaction Highlights

  • Combined mineral resource base of 34.7 million ounces of silver and 166 thousand ounces of gold in the Indicated category and 29.3 million ounces of silver and 817 thousand ounces of gold in the Inferred category, solidifying the Kitsault Valley Project as among the largest high-grade, undeveloped precious metal assets in Western Canada.
  • Consolidation of two adjacent projects, allowing for numerous potential co-development opportunities with capital and operating synergies.
  • Exposure to a large and highly prospective land package, with potential to further expand resources through additional exploration along a combined 15 km strike-length within a 163 kmconsolidated land package.
  • Transformative scale to enhance investor visibility and peer group positioning.
  • Previous stand-alone Homestake Project preliminary economic assessment produced an after-tax net present value of USD$173 million and an internal rate of return of 32% at US$1,620 per ounce gold price and US$14.40 per ounce silver price. The study estimated a total of 590,040 ounces of gold equivalent production over a 13 years initial mine life at an all-in sustaining costs per ounce gold of US$670.
  • Fury to have board representation in Dolly Varden and agrees to voluntary share sale restrictions.

Shawn Khunkhun, CEO & Director of Dolly Varden, commented “We are excited to combine two adjacent precious metals projects located in one of the world’s top mining jurisdictions. We expect that this combination will result in significant synergies in the areas of exploration, development, permitting and production. Upon completion of the Transaction, we look forward to continued engagement with Indigenous and community partners to ensure the responsible development of this compelling new project.”

Tim Clark, CEO & Director of Fury, further added “The commercial logic behind the combination of these two adjacent assets is very strong. We are delighted to cooperate with the Dolly Varden team and are very excited to be part of this regional consolidation in British Columbia. Combining our Homestake Project with the DV Project creates an attractive opportunity to immediately establish shareholder value through the potential synergies that result from their regional proximity. We look forward to having our shareholders benefit from the exciting growth and development of the Kitsault Valley Project, and to Fury becoming a partner and significant shareholder of Dolly Varden.”

Ivan Bebek, Chair and Director of Fury commented “The decision to vend Homestake is a difficult one given the exploration upside and our positive outlook for the commodity markets. However, we feel that bringing the two projects together is clearly the best path forward and are very excited to be partnering with the team at Dolly Varden. This transaction also simplifies Fury’s portfolio which coincides with recent positive drill results from both of Fury’s Quebec and Nunavut assets.”

Transaction Details

Under to the Purchase Agreement, Dolly Varden has agreed to acquire Fury’s wholly-owned subsidiary, Homestake Resource Corporation, which owns a 100% interest in the Homestake Project in exchange for a $5 million cash payment and the issuance of 76,504,590 common shares of Dolly Varden. Upon completion of the Transaction, Fury will own approximately 36.9% of Dolly Varden on an outstanding basis. The Transaction is subject to a number of closing conditions, including the receipt of TSX Venture Exchange (“TSXV“) approval and the satisfaction of certain other closing conditions customary for a transaction of this nature. The Transaction is also subject to approval by a simple majority of the votes cast by Dolly Varden shareholders at a Dolly Varden shareholders meeting. Dolly Varden expects to hold a special meeting of shareholders in February 2022 to consider the Transaction. The Transaction is an arm’s-length transaction under the rules of the TSXV.

Dolly Varden and Fury will enter into an investor rights agreement (the “Investor Rights Agreement“) on completion of the Transaction pursuant to which Fury shall have the right to appoint two nominees to the Dolly Varden board so long as Fury owns greater than 20% of the Dolly Varden shares outstanding. Should Fury own greater than 10% of the Dolly Varden shares outstanding, Fury shall have the right to appoint one nominee to the Dolly Varden board. Additionally, the shares issued to Fury shall be subject to a one-year hold period. The Investor Rights Agreement shall also contain certain customary re-sale restrictions, voting and standstill conditions, and participation rights as agreed between Dolly Varden and Fury.

The Purchase Agreement also includes certain representations, warranties, covenants, indemnities and conditions that are customary for a transaction of this nature. A termination fee of $2 million may be payable by Dolly Varden to Fury if the Transaction is not approved by Dolly Varden shareholders due to a competing proposal being made or announced before the Dolly Varden shareholder meeting and Dolly Varden is subsequently acquired by the third party under such competing proposal.

Further information regarding the Transaction will be contained in a management information circular to be prepared by Dolly Varden and mailed to shareholders of Dolly Varden in connection with the special meeting of shareholders to be held by Dolly Varden to consider the Transaction and related matters. All shareholders of Dolly Varden are urged to read the information circular once available, as it will contain important additional information concerning the Transaction.

Dolly Varden Board Recommendations and Voting Support

The Purchase Agreement has been unanimously approved by the board of directors of both Dolly Varden and Fury. The Dolly Varden board of directors recommend that Dolly Varden shareholders vote in favour of the Transaction.

All of the directors and officers of Dolly Varden and certain shareholders of Dolly Varden, including Eric Sprott, holding in aggregate 18.2% of the issued and outstanding common shares of Dolly Varden, have entered into customary voting support agreements agreeing to vote in favour of the Transaction.

Haywood Securities Inc. has provided a fairness opinion to the board of directors of Dolly Varden that, as of the date thereof, and based upon and subject to the assumptions, limitations and qualifications stated therein, the consideration to be paid by Dolly Varden to Fury under the Agreement is fair, from a financial point of view, to Dolly Varden.

Conference Call and Webcast

A joint webcast will be held by management of both Dolly Varden and Fury to discuss the Transaction on Monday, December 6th, 2021 at 10 a.m. Pacific time / 1 p.m. Eastern time. Shareholders, analysts, investors and media are invited to join the live webcast by registering using the following link: http://services.choruscall.ca/links/dollyvardensilver20211206.html

A presentation to accompany the conference call and webcast can be accessed via either the Dolly Varden or Fury websites at www.dollyvardensilver.com or www.furygoldmines.com. A replay of the joint webcast will be available on both websites following the conclusion of the call.

Advisors and Counsel

Haywood Securities Inc. is acting as financial advisor to Dolly Varden. Stikeman Elliott LLP is acting as legal counsel to Dolly Varden.

Minvisory Corp. is acting as financial advisor to Fury. McMillan LLP is acting as legal counsel to Fury.

Qualified Persons

The technical information contained in this news release relating to Dolly Varden has been approved by [Rob van Egmond, P. Geo, Chief Geologist for Dolly Varden], who is a “qualified person” within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

The technical information contained in this news release relating to Fury has been approved by [Michael Henrichsen, P. Geo, SVP of Exploration at Fury], who is a “qualified person” within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About Dolly Varden Silver Corporation

Dolly Varden Silver Corporation is a mineral exploration company focused on exploration in northwestern British Columbia. Dolly Varden has two projects, the namesake Dolly Varden silver property and the nearby Big Bulk copper-gold property. The Dolly Varden property is considered to be highly prospective for hosting high-grade precious metal deposits, since it comprises the same structural and stratigraphic setting that host numerous other high-grade deposits (Eskay Creek, Brucejack). The Big Bulk property is prospective for porphyry and skarn style copper and gold mineralization similar to other such deposits in the region (Red Mountain, KSM, Red Chris).

Technical Disclosure

Homestake Resource Estimate:

The Homestake resource estimate is based on the technical report with an effective date of May 29, 2020, as amended and restated June 24, 2020 and titled, “Technical Report, Updated Mineral Resource Estimate and Preliminary Economic Assessment on the Homestake Ridge Gold Project, Skeena Mining Division, British Columbia” which was filed and is available on Fury’s SEDAR profile at www.sedar.com. The report has been prepared in accordance with NI 43-101, Companion Policy 43-101CP to NI 43-101, and Form 43-101F of NI 43-101.

Mineral resources are estimated at a cut-off grade of 2.0 g/t gold equivalent.

Gold equivalent values were calculated using a long-term gold price of US$1,300 per ounce, silver price at US$20 per ounce and copper price at US$2.50 per pound and an exchange rate of US$1.00=C$1.20. The gold equivalent calculation included provisions for metallurgical recoveries, treatment charges, refining costs and transportation.

Dolly Varden Resource Estimate:

The Dolly Varden resource estimate is based on the technical report with an effective date of May 8, 2019, and titled, “Technical Report and Mineral Resource Update for the Dolly Varden Property, British Columbia, Canada” which was filed and is available on Dolly Varden’s SEDAR profile at www.sedar.com. The report has been prepared in accordance with NI 43-101, Companion Policy 43-101CP to NI 43-101, and Form 43-101F of NI 43-101.

A 150 g/t silver cut-off was chosen to reflect conceptual underground mining and processing cut-off grade.

Mineral Resources are not Mineral Reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability. There has been insufficient exploration to define the inferred resource as an indicated or measured mineral resource, and it is uncertain if further exploration will result in upgrading the resource to a measured resource category. There is no guarantee that any part of the mineral resource discussed herein will be converted into a mineral reserve in the future.

About Fury Gold Mines Limited

Fury Gold Mines Limited is a Canadian-focused exploration and development company positioned in three prolific mining regions across the country. Led by a management team and board of directors with proven success in financing and developing mining assets, Fury will aggressively grow and advance its multi-million-ounce gold platform through careful project assessment and exploration excellence. Fury is committed to upholding the highest industry standards for corporate governance, environmental stewardship, community engagement and sustainable mining. For more information on Fury Gold Mines, visit www.furygoldmines.com.

Dolly Varden Contact Information

Shawn Khunkhun, CEO & Director
1-604-602-1440
www.dollyvardensilver.com

Fury Contact Information

Salisha Ilyas, Vice President, Investor Relations
1-437-500-2529
www.furygoldmines.com

Forward-Looking Statements

This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than statements of historical facts, that address events or developments that management of Dolly Varden and Fury expect, are forward-looking statements. Actual results or developments may differ materially from those in forward-looking statements. Dolly Varden and Fury disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.

These statements in this release include: the anticipated benefits of the Transaction to Dolly Varden, Fury and their shareholders; the timing and anticipated receipt of required regulatory and shareholder approvals for the Transaction; the ability of Dolly Varden and Fury to satisfy the conditions to, and to complete, the Transaction as proposed;the holding of the Dolly Varden shareholder meeting; the anticipated timing of the mailing of the information circular regarding the Transaction and of the closing of the Transaction; the ability to achieve synergies, the quantity and grade of the gold and silver resources and the ability to expand resources through the exploration of a combined projects.

In respect of the forward-looking information concerning the anticipated completion of the proposed Transaction and the anticipated timing thereof, Dolly Varden and Fury have provided them in reliance on certain assumptions that they believe are reasonable at this time, including assumptions as to the time required to prepare and mail shareholder meeting materials, including the required information circular; the ability of the parties to receive, in a timely manner, the necessary regulatory and shareholder approvals; and the ability of the parties to satisfy, in a timely manner, the other conditions to the closing of the Transaction. These dates may change for a number of reasons, including unforeseen delays in preparing meeting materials, inability to secure necessary shareholder, regulatory or other approvals in the time assumed or the need for additional time to satisfy the other conditions to the completion of the Transaction. Accordingly, readers should not place undue reliance on the forward-looking information contained in this news release concerning these times.

Since forward-looking information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risk that the Transaction may not close when planned or at all or on the terms and conditions set forth in the Purchase Agreement; the failure to obtain the necessary shareholder and regulatory approvals required in order to proceed with the Transaction; the synergies expected from the Transaction not being realized; business integration risks; operational risks in development, exploration and production for precious metals; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of resource estimates; health, safety and environmental risks; gold price and other commodity price and exchange rate fluctuations; environmental risks; competition; incorrect assessment of the value of acquisitions; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations.

Actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward looking information will transpire or occur, or if any of them do so, what benefits may be derived therefrom and accordingly, readers are cautioned not to place undue reliance on the forward looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this news release.

SOURCE: Fury Gold Mines



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Dolly varden Silver Junior Mining Precious Metals

OTC Markets Group Welcomes Dolly Varden Silver Corporation to OTCQX

NEW YORK, Nov. 16, 2021 /PRNewswire/ — OTC Markets Group Inc. (OTCQX: OTCM), operator of financial markets for over 11,000 U.S. and global securities, today announced Dolly Varden Silver Corporation (TSX-V: DV; OTCQX: DOLLF), a mineral exploration company, has qualified to trade on the OTCQX® Best Market. Dolly Varden Silver Corporation (“Dolly Varden”) upgraded to OTCQX from the Pink® market.

Dolly Varden Silver Corporation begins trading today on OTCQX under the symbol “DOLLF.” U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the company on www.otcmarkets.com.

Upgrading to the OTCQX Market is an important step for companies seeking to provide transparent trading for their U.S. investors. For companies listed on a qualified international exchange, streamlined market standards enable them to utilize their home market reporting to make their information available in the U.S. To qualify for OTCQX, companies must meet high financial standards, follow best practice corporate governance and demonstrate compliance with applicable securities laws.

“Our international and US shareholders are an important part of the Dolly Varden growth strategy and we are grateful for their continued support” said Shawn Khunkhun, the Dolly Varden CEO and Director. “We are pleased to provide our current and future investors expanded access to information and trading liquidity.”

Burns, Figa & Will, P.C. acted as the company’s OTCQX sponsor.

About Dolly Varden Silver Corporation
Dolly Varden Silver Corporation is a mineral exploration company focused on the Dolly Varden silver properties located in northwestern British Columbia, Canada, 25km by road from deep tide water. The 8,800 hectare (88km2) properties host a robust high-grade mineral resource and are considered to be highly prospective for hosting further high-grade deposits, being on the same structural and stratigraphic belts that host numerous other, on-trend, high-grade deposits, such as Eskay Creek and Brucejack.

About OTC Markets Group Inc.
OTC Markets Group Inc. (OTCQX: OTCM) operates the OTCQX® Best Market, the OTCQB® Venture Market and the Pink® Open Market for over 11,000 U.S. and global securities. Through our regulated OTC Link® Alternative Trading Systems, the Company connects a diverse network of broker-dealers that provide liquidity and execution services. We enable investors to easily trade through the broker of their choice and empower companies to improve the quality of information available for their investors.

OTC Link ATS, OTC Link ECN and OTC Link NQB are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC.

To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com.

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Media Contact:
OTC Markets Group Inc., +1 (212) 896-4428, media@otcmarkets.com

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Dolly varden Silver Energy Junior Mining Precious Metals

Dolly Varden Silver Strengthens Technical Team with Andrew Hamilton, P.Geo.

VANCOUVER, BC, Nov. 9, 2021 /PRNewswire/ – Dolly Varden Silver Corporation (“Dolly Varden” or the “Company“) (TSXV: DV) (OTC: DOLLF), is pleased to announce that Andrew Hamilton, P.Geo. has joined the Company as Senior Geologist.

Dolly Varden Silver Corp Logo (CNW Group/Dolly Varden Silver Corp.)
Dolly Varden Silver Corp Logo (CNW Group/Dolly Varden Silver Corp.)

Mr. Hamilton is an exploration geologist with over 30 years of mineral exploration experience, primarily in British Columbia, Nunavut, the Yukon and Mexico, with a focus on gold and copper-gold projects. He brings additional grass roots to advanced stage mineral exploration experience to Dolly Varden with a focus on drill program design and management, mineral resource modelling and estimation, QAQC and data management.

Andrew has been part of technical teams of multiple successful explorers that have transitioned from exploration to production as well as company sale, including Wheaton River Minerals’ Golden Bear Mine, Cumberland Resources’ Meadowbank Project and IDM Mining’s Red Mountain Project. He was mostly recently the Exploration Manager for White Gold Corp. for their Yukon projects.

As an Independent Qualified Person, he has co-authored numerous NI 43-101 Reports and Resource Estimates, as well as audits and reviews of producing Companies Mineral Resources and Reserves and QA/QC. Mr. Hamilton has been lauded in the mining industry for his conservative and balanced approach.

Shawn Khunkhun, Dolly Varden’s CEO, commented: “I am pleased to welcome Andrew to Dolly Varden. His advanced exploration experience in the Golden Triangle, expertise in the design of drill programs for resource delineation and expansion, as well as critical project evaluation skills will complement our current technical team and benefit the Company as we look to dramatically grow in the next two years.”

Mr. Hamilton holds a Bachelor of Science degree in geological sciences from the University of British Columbia and a Bachelor of Arts degree in anthropology from the University of Victoria. He is a registered professional geoscientist (P.Geo.) in the province of British Columbia.

About Dolly Varden Silver Corporation

Dolly Varden Silver Corporation is a mineral exploration company focused on exploration in northwestern British Columbia. Dolly Varden has two projects, the namesake Dolly Varden silver property and the nearby Big Bulk copper-gold property. The Dolly Varden property is considered to be highly prospective for hosting high-grade precious metal deposits, since it comprises the same structural and stratigraphic setting that host numerous other high-grade deposits (Eskay Creek, Brucejack). The Big Bulk property is prospective for porphyry and skarn style copper and gold mineralization similar to other such deposits in the region (Red Mountain, KSM, Red Chris).

Forward Looking Statements

This release may contain forward-looking statements or forward-looking information under applicable Canadian securities legislation that may not be based on historical fact, including, without limitation, statements containing the words “believe”, “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “potential” and similar expressions. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Dolly Varden to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward looking statements or information relates to, among other things, completion of the Offering, Exchange approval of the Offering, the use of proceeds with respect to the Offerings, the results of previous field work and programs and the continued operations of the current exploration program, interpretation of the nature of the mineralization at the project and that that the mineralization on the project is similar to Eskay and Brucejack, results of the mineral resource estimate on the project, the potential to grow the project, the potential to expand the mineralization, the planning for further exploration work, the ability to de-risk the potential exploration targets, and our beliefs about the unexplored portion of the property. These forward-looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.

For additional information on risks and uncertainties, see the Company’s most recently filed annual management discussion & analysis (“MD&A”), which is available on SEDAR at www.sedar.com. The risk factors identified in the MD&A are not intended to represent a complete list of factors that could affect the Company.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this news release.

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