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Vancouver, British Columbia–(Newsfile Corp. – January 30, 2023) – Dolly Varden Silver Corporation (TSXV: DV) (OTCQX: DOLLF) (the “Company” or “Dolly Varden“) is pleased to announce drill results from the 100%-owned Homestake Ridge property in BC’s Golden Triangle.
Highlights from the Homestake Main Deposit include*:
HR22-324: 4.32 g/t Au and 76 g/t Ag over 22.50 meters including 19.42 g/t Au and 375 g/t Ag over 4.50 meters
HR22-333: 46.31 g/t Au, 70 g/t Ag and 0.19% Cu over 25.00 meters including 1,145 g/t Au, 826 g/t Ag and 0.51% Cu over 0.48 meters
HR22-336: 6.19 g/t Au and 1,844 g/t Ag over 3.90 meters and 6.37 g/t Au, 29 g/t Ag and 1.51% Cu over 6.00 meters
HR22-338: 4.16 g/t Au, 21 g/t Ag and 1.42% Cu over 5.10 meters including 20.80 g/t Au, 115 g/t Ag and 11.60% Cu over 0.50 meters
HR22-345: 8.73 g/t Au and 12 g/t Ag over 29.54 meters, including 260 g/t Au, 102 g/t Ag over 0.70 meters
HR22-359: Three individual higher grade zones grading; 49.49 g/t Au over 1.52m, 24.00 g/t Au over 0.70m and 46.20 g/t Au over 0.50m within a 40.50 meter interval
* Intervals are core length; estimated true widths vary from 80 to 90% of core length interval, assays are uncut
Highlights from the Homestake Silver Deposit include*:
HR22-349: 211 g/t Ag over 3.50 meters, and 688 g/t Ag over 0.80 meters
HR22-357: Three individual higher grade silver intersects grading; 1,185 g/t Ag over 0.50m, 816 g/t Ag over 0.50m and 1,085 g/t Ag over 0.50m within a 129m wide structural corridor
HR22-361: 2,500 g/t Ag, 15.04 g/t Au and 0.17% Cu over 1.20 meters
HR22-362: 1,252 g/t Ag, 0.81 g/t Au and 0.14% Cu over 2.50 meters, including 3,330 g/t Ag, 0.75 g/t Au and 0.38% Cu over 0.75m
HR22-365: 469 g/t Ag over 2.70 meters including 1,040 g/t Ag over 0.65 meters
* Intervals are core length; estimated true widths vary from 70 to 90% of core length interval, assays are uncut
“Dolly Varden Silver’s initial drilling at the Homestake Main Deposit has returned consistent mineralized intervals with some of the highest grades of gold with silver reported from the Property to date, but also the entire Golden Triangle during the 2022 drilling season,” said Shawn Khunkhun, President and CEO. “Coupled with the exceptional grades and thicknesses of silver mineralization encountered in step-out holes at the Wolf and Kitsol Deposits, we are demonstrating the impressive precious metal endowment and potential of the Kitsault Valley trend.”
The objective of drilling during 2022 at the Homestake Main and Homestake Silver deposits was to expanded multiple, subparallel mineralized zones and to upgrade Inferred Mineral Resources. A total of 41 holes for 10,472 meters were completed at the Homestake Main Deposit, 12 holes for 6,076 meters were completed at the Homestake Silver Deposit and 3 additional exploration holes for 1,900 meters were completed along the Homestake Ridge Trend during the 2022 season.
Figure 1. Homestake Ridge Deposits within Dolly Varden’s Kitsault Valley Trend.
The Homestake Ridge deposits are interpreted as structurally-controlled, multi-phase epithermal vein and breccia systems hosted in early Jurassic-age Hazelton Group volcanic rocks. Mineralization consists primarily of pyrite and chalcopyrite in a breccia matrix within a silica breccia vein system, locally with native gold, silver and electrum. (see Figure 3). The northwestern strike of the main Homestake structural trend hosts multiple, subparallel internal structures that are interpreted to form the controls for high-grade gold shoots within a broader interval of mineralization at the Homestake Main deposit. The main structural corridor dips steeply to the northeast (see Figure 4 to 6).
Figure 2. Homestake Main and Homestake Silver Long Section (looking west) with 2022 drilling highlighted.
The results from Homestake Main are primarily infill drilling from areas of current Inferred Mineral Resources and suggest that the higher-grade gold-silver shoots may be more extensive than previously interpreted. In addition, the drilling has generated new targets down-dip the Homestake Main deposit along the projected plunge of the higher grade shoots that are wide open for expansion. Oriented core was used on all drill holes on the project and this detailed structural data is also being integrated in to the geological model to further increase confidence.
Four of the drill holes at Homestake Main were drilled below the Mineral Resource domains to test for down dip extensions. Drill holes HR22-326, 329, 351 and 354 all intersected the structures that host gold mineralization below the resource.
One step out drill hole, HR22-355, was drilled along trend and approximately 250m north of Homestake Main. Alteration associated with the main deposit was encountered with minor brecciation returning anomalous pathfinder elements as seen in the upper levels of the mineralization system at the Homestake Main Deposit indicating the system continues to the north.
Complete Assay results for the second batch of drilling results from Homestake Main are in Table 1.
Figure 3. Drill hole HR22-333 from the Homestake Main deposit showing breccia vein style mineralization.
The 2022 drilling at the Homestake Silver Deposit area was a combination of step out holes below the primarily Inferred Mineral Resource as well as some infill drilling designed to convert Inferred resources to Indicated classification. Six infill drill holes, HR22-340, 344, 349, 353, 358 and 361, were collared off three drill pads at the southern end of the deposit (see Figure 8). The mineralization encountered in these holes is consistent with previous drilling.
Expansion drill Holes HR22-364, 365 and 366 targeted the south end while HR22-357 and 360 in the northern end of Homestake Silver testing below several of the resource domains. Drilling intersected silver mineralization (see figure 4) within multiple vein stockwork zones extending the zones to depth. These areas remain open down dip.
Figure 4. Drill hole HR22-366, 473m depth, down dip step out from the Homestake Silver deposit showing Native Silver in breccia vein style mineralization.
Step out drill hole HR22-362, located approximately 200m down dip and along the targeted projection of a Homestake Silver resource domain intersected vein breccia over 2.50m core length grading 1,252 g/t Ag, including 0.75m grading 3,330 g/t Ag. Relatively little drilling has been completed at Homestake Silver and with these step out mineralized intersections the expansion potential to depth and along strike has been demonstrated.
Complete Assay results for the 2022 Homestake Silver drilling are in Table 2.
Homestake Trend Exploration
Two new areas within the Homestake Trend were tested with three drill holes. Drill holes HR22-311 and 312 were collared 425m to the south of the Homestake Silver Deposit to test below sedimentary cover rocks (see Figure 2). Although alteration of the volcanic rock below the sediment cover was present, no significant mineralization was encountered. Further geophysics will be completed over this area to aid in targeting the southern projection of the Homestake Ridge structural corridor below the sediment cover.
Drill hole HR22-363 was drilled 1.2 kilometers to the east of Homestake Main to test a dominant Northeast trending controlling structure within the centre of the valley. No significant mineralization was encountered within the structure in that area.
Plans, Sections and Tables
Figure 5. Homestake Main Plan View highlighting 2022 Infill and Step out drilling (red collars) with Current Mineral Resource block model, primarily of Inferred Classification.
Figure 8. Homestake Silver Plan View highlighting 2022 Step out and Infill drilling (red collars) with Current Mineral Resource block model, primarily of Inferred Classification.
Table 1. Complete Drill Hole Assays from the Homestake Main Deposit Infill drilling
Hole ID
From (m)
To (m)
Length* (m)
Au (g/t)**
Ag (g/t)**
Cu (%)
HR22-324
152.00
174.50
22.50
4.32
76
NSV
including
170.00
174.50
4.50
19.42
375
NSV
including
171.96
172.40
0.44
166
984
NSV
HR22-326
451.00
472.80
21.80
0.47
NSV
NSV
including
461.00
463.00
2.00
3.00
NSV
NSV
HR22-329
413.46
450.55
37.09
0.73
NSV
NSV
including
418.00
422.00
4.00
4.03
6
NSV
including
423.00
424.00
1.00
1.62
9
NSV
HR22-332
252.40
265.20
12.80
0.33
NSV
0.18
including
256.50
258.00
1.50
0.81
11
1.09
including
344.50
345.50
1.00
1.39
16
NSV
and
393.00
403.25
10.25
0.79
NSV
NSV
including
397.50
400.50
3.00
2.30
40
NSV
HR22-333
92.00
105.00
13.00
1.05
21
NSV
including
98.30
99.08
0.78
13.95
196
NSV
and
117.00
142.00
25.00
46.31
70
0.19
including
120.26
130.10
9.84
111.94
162
0.37
including
124.67
125.15
0.48
1,145
826
0.51
HR22-336
96.30
100.20
3.90
6.19
1,844
NSV
including
96.62
97.00
0.38
3.78
13,855
0.49
and
132.00
157.00
25.00
1.95
NSV
0.38
including
133.00
139.00
6.00
6.37
29
1.51
HR22-338
120.90
126.00
5.10
4.16
21
1.42
including
120.90
121.40
0.50
20.80
115
11.60
including
128.60
129.84
1.24
8.92
52
1.38
and
150.50
159.00
8.50
0.63
5
0.21
including
150.50
151.30
0.80
4.89
28
1.43
and
175.50
178.50
3.00
0.61
17
0.45
including
177.00
177.65
0.65
1.17
43
1.55
HR22-341
84.00
113.00
29.00
2.28
5
0.13
including
96.00
107.00
11.00
5.27
9
0.33
including
102.00
104.00
2.00
14.85
20
0.73
HR22-342
79.32
102.00
22.68
0.80
57
NSV
including
88.31
92.00
3.69
2.95
8
NSV
and
120.00
140.44
20.44
0.57
NSV
NSV
including
121.13
123.70
2.57
2.39
5
0.29
HR22-343
84.50
115.00
30.50
1.15
NSV
NSV
including
92.27
96.80
4.53
1.59
NSV
NSV
including
99.19
103.30
4.11
2.67
5
NSV
including
107.00
109.00
2.00
4.45
15
0.35
HR22-345
95.00
124.54
29.54
8.73
12
0.13
including
115.12
124.54
9.42
26.25
28
0.37
including
120.00
120.70
0.70
260
102
NSV
HR22-346
111.00
126.05
15.05
1.04
NSV
NSV
including
119.75
122.75
3.00
3.47
9
0.37
HR22-347
135.00
156.00
21.00
1.88
NSV
0.04
including
135.00
147.00
12.00
2.57
NSV
0.07
HR22-348
63.00
71.00
8.00
0.16
NSV
NSV
and
80.00
111.00
31.00
1.63
NSV
NSV
including
88.00
100.00
12.00
3.24
NSV
0.14
HR22-350
66.00
128.00
62.00
0.87
NSV
NSV
including
77.00
94.00
17.00
2.05
NSV
NSV
HR22-351
436.00
438.00
2.00
0.36
NSV
NSV
and
473.70
477.50
3.80
0.30
NSV
NSV
HR22-352
172.00
227.00
55.00
1.37
4
0.20
including
178.81
179.81
1.00
53.75
54
2.03
including
202.33
203.33
1.00
3.65
63
4.68
including
211.00
212.45
1.45
1.22
9
0.16
HR22-354
495.00
498.90
3.90
0.12
NSV
NSV
HR22-355 (step out)
645.00
648.50
3.50
0.12
NSV
NSV
and
662.00
666.75
4.75
0.18
NSV
NSV
HR22-356
212.00
218.00
6.00
0.38
NSV
NSV
and
221.00
221.50
0.50
4.32
NSV
NSV
and
291.50
308.00
16.50
0.21
NSV
NSV
HR22-359
49.70
50.20
0.50
0.74
6,420
0.11
and
111.63
113.15
1.52
49.49
50
0.96
and
136.85
137.55
0.70
24.00
76
0.38
and
141.00
141.50
0.50
46.20
6
NSV
*Estimated true widths vary depending on intersection angles and range from 80% to 90% of core lengths ** Assays reported are uncut
Table 2. Completed Drill Hole Assays from the Homestake Silver Deposit step out and Infill drilling
Hole ID
From (m)
To (m)
Length* (m)
Au (g/t)**
Ag (g/t)**
Cu (%)
HR22-340
46.00
56.00
10.00
NSV
97
NSV
HR22-344
81.00
82.00
1.00
NSV
112
NSV
and
152.00
153.00
1.00
NSV
103
NSV
and
166.00
167.00
1.00
0.39
NSV
NSV
and
197.75
204.75
7.00
0.13
65
NSV
including
197.75
198.50
0.75
0.13
146
NSV
and
408.00
410.00
2.00
0.14
72
NSV
HR22-349
153.00
156.50
3.50
NSV
211
0.12
and
159.20
160.00
0.80
NSV
688
NSV
and
325.80
329.00
3.20
0.12
210
NSV
and
337.00
341.00
4.00
0.50
287
NSV
and
355.47
356.18
0.71
0.10
434
NSV
and
361.50
362.80
1.30
NSV
151
NSV
HR22-353
239.22
256.00
16.78
NSV
119
NSV
including
239.22
243.27
4.05
NSV
242
NSV
including
253.79
256.00
2.21
0.17
154
NSV
HR22-357
194.38
195.50
1.12
0.16
318
NSV
and
200.00
200.50
0.50
NSV
151
NSV
and
206.60
209.30
2.70
0.08
506
NSV
including
206.60
207.10
0.50
0.11
1,185
NSV
and
239.00
239.50
0.50
0.11
816
NSV
and
298.70
299.20
0.50
NSV
1,085
0.18
and
315.60
316.15
0.55
0.17
585
NSV
and
335.10
335.90
0.80
0.30
351
NSV
HR22-358
110.27
111.92
1.65
NSV
132
NSV
and
136.69
137.10
0.41
NSV
192
NSV
and
250.77
251.17
0.40
0.08
386
NSV
and
326.61
327.12
0.51
0.63
161
NSV
and
331.00
332.00
1.00
0.07
215
NSV
HR22-360
205.40
206.00
0.60
0.08
339
NSV
and
229.00
229.50
0.50
0.07
425
NSV
and
243.75
244.25
0.50
NSV
136
NSV
and
278.25
279.25
1.00
NSV
148
NSV
and
315.00
317.00
2.00
NSV
310
NSV
and
328.50
329.50
1.00
0.10
488
NSV
and
331.00
332.70
1.70
0.13
690
NSV
and
336.00
336.50
0.50
0.60
1,270
NSV
and
337.45
341.70
4.25
0.40
251
NSV
and
396.00
399.00
3.00
2.31
39
NSV
and
444.00
446.00
2.00
0.68
NSV
NSV
HR22-361
165.17
165.63
0.46
NSV
599
NSV
and
213.33
213.65
0.32
0.37
99
NSV
and
226.10
227.30
1.20
15.04
2,500
0.17
and
317.01
317.41
0.40
2.07
45
0.44
HR22-362
633.00
635.50
2.50
0.81
1,252
0.14
including
634.00
634.75
0.75
2.24
3,330
0.38
HR22-364
486.75
488.60
1.85
0.16
15
NSV
HR22-365
184.70
186.85
2.15
NSV
187
NSV
and
190.75
193.45
2.70
NSV
469
NSV
including
192.30
192.95
0.65
NSV
1,040
NSV
and
512.00
512.85
0.85
0.31
98
NSV
HR22-366
472.70
473.27
0.57
0.70
2,760
0.06
*Estimated true widths vary depending on intersection angles and range from 70% to 90% of core lengths ** Assays reported are uncut
Table 3. Drill Hole Collars for 2022 Homestake Main Deposit Area Drilling (this release)
Hole ID
Easting UTM83 (m)
Northing UTM83 (m)
Elev. (m)
Azimuth
Dip
Length (m)
HR22-324
462956
6179462
956
225
-80
201.00
HR22-326
463126
6179555
903
215
-72
472.50
HR22-329
463126
6179555
903
232
-72
495.00
HR22-332
462965
6179544
922
240
-73
402.00
HR22-333
463089
6179383
982
225
-47
210.00
HR22-336
463034
6179363
1009
225
-76
186.00
HR22-338
463034
6179363
1009
240
-56
186.00
HR22-341
462902
6179443
961
220
-48
120.00
HR22-342
462995
6179395
996
225
-65
198.00
HR22-343
462902
6179443
961
220
-50
150.00
HR22-345
462919
6179389
1007
225
-66
132.00
HR22-346
462866
6179514
943
225
-50
180.00
HR22-347
462866
6179514
943
225
-60
192.00
HR22-348
462919
6179389
1007
225
-50
111.00
HR22-350
462919
6179389
1007
200
-45
132.00
HR22-351
463323
6179506
854
225
-45
522.00
HR22-352
463132
6179416
949
200
-55
351.00
HR22-354
463314
6179608
842
226
-45
502.00
HR22-355
462865
6179922
1066
245
-60
682.00
HR22-356
463050
6179452
956
255
-74
399.00
HR22-359
462919
6179389
1007
160
-45
288.00
Table 4. Drill Hole Collars for 2022 Homestake Silver Deposit Area Drilling
Hole ID
Easting UTM83 (m)
Northing UTM83 (m)
Elev. (m)
Azimuth
Dip
Length (m)
HR22340
463802
6178573
801
223
-46
360.00
HR22344
463802
6178573
801
223
-56
435.00
HR22349
463805
6178612
793
223
-45
435.00
HR22353
463805
6178612
793
223
-57
477.00
HR22358
463780
6178621
803
223
-50
467.00
HR22361
463780
6178621
803
223
-56
390.00
HR22357
463578
6179147
834
220
-55
528.00
HR22360
463578
6179147
834
230
-50
600.00
HR22362
464180
6178462
716
235
-50
681.00
HR22364
463833
6178779
763
223
-50
600.00
HR22365
463912
6178711
749
223
-50
531.00
HR22366
463964
6178647
745
220
-53
570.00
Table 5. Drill Hole Collars for 2022 Homestake Exploration Drilling
Hole ID
Easting UTM83 (m)
Northing UTM83 (m)
Elev. (m)
Azimuth
Dip
Length (m)
HR22311
464460
6177976
714
250
-50
903.00
HR22312
464460
6177976
714
230
-55
520.00
HR22363
464217
6179802
840
190
-75
471.00
The Company Engages Gold Standard Media LLC
The Company has engaged internet marketing and advertising company, Gold Standard Media, LLC (“GSM”), to prepare email marketing campaigns, landing pages, advertisements, and other related services to assist the Company in raising public awareness of the Company and enhance its online presence.
GSM is a limited liability company existing under the laws of the State of Texas with an office at 723 W, University Ave. #110-283 Georgetown Texas. GSM uses affiliated entities such as Future Money Trends and Portfolio Wealth Global LLC for the purpose of these marketing activities. Under the terms of the agreement GSM will be paid US$125,000 for a 12 month period.
Quality Assurance and Quality Control
The Company adheres to CIM Best Practices Guidelines for exploration related activities conducted on its property. 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 to 70% minus 2mm (10 mesh), of which a 500 gram split is pulverized to minus 200 mesh. 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., Vice-President Exploration 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 for Dolly Varden on the Kitsault Valley Project.
About Dolly Varden Silver Corporation
Dolly Varden Silver Corporation is a mineral exploration company focused on advancing its 100% held Kitsault Valley Project (which combines the Dolly Varden Project and the Homestake Ridge Project) located in the Golden Triangle of British Columbia, Canada, 25kms by road to tide water. The 163 sq. km. project hosts the high-grade silver and gold resources of Dolly Varden and Homestake Ridge along with the past producing Dolly Varden and Torbrit silver mines. It is considered to be prospective for hosting further precious metal deposits, being on the same structural and stratigraphic belts that host numerous other, on-trend, high-grade deposits, such as Eskay Creek and Brucejack. The Kitsault Valley Project also contains the Big Bulk property which 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 in this release relates to, among other things, the 2022 drill program at the Kitsault Valley Project, 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 and our beliefs about the unexplored portion of the property.
These forward-looking statements are based on management’s current expectations and beliefs and assume, among other things, the ability of the Company to successfully pursue its current development plans, that future sources of funding will be available to the company, that relevant commodity prices will remain at levels that are economically viable for the Company and that the Company will receive relevant permits in a timely manner in order to enable its operations, 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“) and management information circular dated January 21, 2022 (the “Circular“), both of which are available on SEDAR at www.sedar.com. The risk factors identified in the MD&A and the Circular 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.
As my regular readers fully understand, I am a big fan of measuring sentiment to gauge just where we are in the metals cycle. On September 1st I said we were at a tradable low. That was accurate to the day for silver and gold plodded along for another four weeks before touching the low. I picked that timeframe based mostly on DSI but also use every other way to measure sentiment that I can find including talking to others I have respect for in the industry.
If you are looking for a holiday treat for yourself, the DSI is on sale from now and ending on December 15th at a 60% discount. If you are a serious investor, it is the best tool you will ever find. I know there are half a dozen GURUs out there who claim to be experts who have never made a single accurate call.
I called the top in silver to the day in 2011 and this latest silver bottom to the day. I know of no other writer who can say that. And I am neither a guru nor an expert. I just used the same tools available to all of us.
I have reached out to the people whose judgment I appreciate the most to make sense of what I have seen in the last few months. The sentiment is worse across the board than what I saw back in 2000-2001 when both gold and silver made historic lows. You can see it in the trading volume and absurdly low prices.
It tells me this is your time to make your fortune. I don’t know how many times I have repeated that you have to buy when no one wants to buy and sell when everyone wants to buy. I see dozens of stocks including some real piece of shit stocks with rotten management that have 1000% potential in the near future. Forget reading tealeaves and plucking through chicken entrails and pondering what the Fed might screw up next. Sentiment moves markets but you have to see it. Anyone looking at the DSI and $BPGDM could make the same to the day predictions I have made dozens of times without being a guru.
I’ll say it again. Dolly Varden is silver.
The company has a 163 km land package in the midst of the Golden Triangle in Northern BC, Canada. It consists of two primary parts, the Homestake Ridge with about 20 million ounces of silver with just short of a million ounces of gold. Homestake was bought from Fury for $5 million in cash and 76.5 million DV shares. Fury recently sold 17 million of those shares reducing their overall ownership of Dolly Varden to 26%. The second part would be of course the Dolly Varden property and mine with an additional 44.5 million ounces of silver.
Dolly likes to use both silver and gold equivalent ounces. If using silver Eq, they have a total of 137 million Ag Eq ounces. If using gold it would be 1.83 million Au Eq ounces. With a $133 million CAD market cap and $10 million in cash, Dolly is getting less than $1 CAD an ounce or $.70 USD. Well before the marvelous run up to near $50 an ounce in 2011 silver companies were getting $3 to $5 an ounce USD and it will happen again. Dolly certainly could have a 400-700% move higher when silver investors wake up.
They have not woken up yet. Silver touched a low of $17.56 on September 1st. Last week it hit a high of $22.24 on Wednesday. That is a 26% gain in less than three months. And investors in the resource space have not woken up yet. These subsurface rallies can go higher and faster than you can imagine. It happened in early 2016 and again in 2020 when silver blasted higher from under $12 an ounce to almost $30 in ten months.
Dolly’s 2022 drill program called for 30,000 meters of drilling in 99 holes with four rigs turning. The company is releasing results on a regular basis. Their last press release from November 7, 2022 showed 12.51 meters of 442 g/t Ag. That’s almost $300 rock in USD and highly economic.
One thing that I would like to point out that even I didn’t know, until I poured through their company presentation, is that the ownership is almost totally in the hands of professional investors. Sprott owns 11%, Hecla another 10%, I mentioned Fury with 26% and another 45% in institutional investors. There is a mere 8% in the clutches of retail investors yet they are the people who move the stock. When silver is hot again and it will be, Dolly Varden is going to be the go-to silver stock once again.
Dolly Varden is an advertiser and I participated in their last private placement so I am biased. Please do your own due diligence.
Vancouver, British Columbia–(Newsfile Corp. – September 13, 2022) – Dolly Varden Silver Corporation (TSXV: DV) (OTCQX: DOLLF) (the “Company” or “Dolly Varden“) is pleased to announce results from drilling at the Wolf Vein, including step-out hole DV22-300 which returned a significant, high-grade silver intercept. Based on the grade and strength of the mineralizing system, the Company has prioritized continued step-out drilling at Wolf during for the remainder of the 2022 season.
DV22-300 encountered a wide interval of multi-phase veins and breccia, intersecting 19.85m (13.90m true width) averaging 584 g/t Ag, 0.92 %Pb, 0.56% Zn and 0.19 g/t Au, with bonanza grade silver mineralization grading 4,326 g/t Ag, 4.21% Pb, 1.36% Zn and 1.00 g/t Au over 1.60m (1.12m true width) within a sulphide and silver sulphosalt matrix vein breccia in the main veined interval.
Figure 1. Kitsault Valley trend and mineral deposits
To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/1728/136919_ad8a8710944e89e1_002full.jpghttps://embed.fireplace.yahoo.com/embed?ctrl=Monalixa&m_id=monalixa&m_mode=document&site=sports&os=android&pageContext=%257B%2522ctopid%2522%253A%25221542500%253B1480989%253B1481489%2522%252C%2522hashtag%2522%253A%25221542500%253B1480989%253B1481489%2522%252C%2522wiki_topics%2522%253A%2522Company%253BBreccia%253BDrilling%2522%252C%2522lmsid%2522%253A%2522a0V0W00000HOPDcUAP%2522%252C%2522revsp%2522%253A%2522newsfile_64%2522%252C%2522lpstaid%2522%253A%2522edcf1f2a-bcfa-39ba-b8d2-b5dc80848c6b%2522%252C%2522pageContentType%2522%253A%2522story%2522%257D
“With an increase in vein intensity and silver grades, the Wolf Vein area is emerging as a large system, rivaling our Torbrit Deposit. With an established plunge length of over 500 meters from the historic underground workings, we are continuing to step out along this trend towards the Kitsol Vein, where we recently announced similar, high-grade mineralization over 1,400 meters away. The increasing gold and base metal content, in addition to the silver, is highly encouraging, as well as the significant widths that are potentially amenable to bulk underground mining techniques,” said Shawn Khunkhun, President and CEO of Dolly Varden Silver.
The mineralized interval in DV22-300 is a southwesterly step-out along strike and down dip from DV21-273, which returned 17.50m averaging 214 g/t Ag and 0.47% Pb including 1.22 m averaging 1,532 g/t Ag, 0.44 g/t Au, 2.11 % Pb and 1.07% Zn (see Dolly Varden news release, December 20, 2021) and projects as a mineralized shoot over 55m down plunge from DV21-273. High-grade silver in DV22-300 occurs within a very strong, multiphase vein and breccia system that also includes significant gold and base metal mineralization.
The strength of the mineralizing system, as well as silver and potentially gold appears to be increasing at depth and to the southwest; assays are pending for DV22-316, which encountered strong veining, alteration, brecciation and one occurrence of visible gold over 200m away from DV22-300 (see Figure 2). All of these drill holes tested below the Upper Hazelton sediment cap with associated strong potassic alteration; this trend continues south for 1,400 m to the Kitsol Vein (see Figure 1).
Figure 3. Geological Cross Section of Wolf Vein. 25 meter window width looking northwest. DV22-194 is same dip as DV22-300 approximately 30m off section.
The Wolf Vein is a steep dipping, high-grade silver vein deposit that is part of the current Mineral Resource Estimate at Dolly Varden’s Kitsault Valley trend. In 2021, geological modelling of the deposit showed expansion potential along strike to the southwest below the sediment cap that masks surface expression of the vein mineralization and associated alteration. With the discovery that the system continued to the southwest over 8,000m of follow up drilling has been completed thus far during the 2022 exploration program. This drilling has defined high grade silver mineralization to a depth of 500m below surface and extended the zone over 350m down plunge from historic drilling and over 500m from the historic underground workings.
Results have been received for the first six exploration drill holes testing the Wolf Vein extension. All holes were drilled from the same pad with varying azimuths and dips (see Table 2). These drill holes tested below the Upper Hazelton sediment cap and have encountered a robust, multi-phase vein and breccia mineralizing system that remains wide open along strike to the south and down dip. The associated strong potassic alteration, a key indicator for silver mineralization at the Kitsault Valley Project, continues below the sediment cap and south for 1,400m to the Kitsol Vein. All holes drilled during 2022, except DV22-280, intersected the extension of the Wolf Vein, suggesting a plunge at approximately 45 degrees to the southwest. DV22-280 came out of the sediment cap into the footwall of the vein. Drill hole DV22-281- intersected impressive base metal values in addition to silver: 3.75m (2.43m true width) averaging 170 g/t Ag,6.25% Pb, 14.12% Zn. In drill holes that hit the Wolf vein outside of the interpreted plunge of the high-grade silver zone, significant lead and zinc intervals are present.
Mineralization at the Wolf Vein consists of multiple epithermal silica vein and brecciation events along a NE trending, steeply NW dipping zone (Figures 4 and 5). Silver mineralization includes: silver sulphosalts, tennantite, argentite and argentiferous galena hosted in vein and vein breccia mineralization.
Figure 4. DV22-300 mineralized interval of multi-phase quartz vein and vein breccias
*AgEq was calculated using $US1650/oz Au, $US20/oz Ag, $US0.90/lb Pb and $US1.10/lb Zn
Table 2. Drill hole collar locations and orientations
Hole ID
Easting UTM83 (m)
Northing UTM83 (m)
Elev. (m)
Azimuth
Dip
Length (m)
DV22280
467089
6173630
388
120
-45
392.00
DV22281
467089
6173630
388
120
-65
495.00
DV22285
467089
6173630
388
120
-70
573.00
DV22288
467089
6173630
388
120
-73
720.00
DV22294
467089
6173630
388
110
-60
423.00
DV22300
467089
6173630
388
129
-60
396.00
Quality Assurance and Quality Control
The Company adheres to CIM Best Practices Guidelines for exploration related activities conducted on its property. 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. Vice-President Exploration 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 advancing its 100% held Kitsault Valley Project (which combines the Dolly Varden Project and the Homestake Ridge Project) located in the Golden Triangle of British Columbia, Canada, 25kms by road to tide water. The 163 sq. km. project hosts the high-grade silver and gold resources of Dolly Varden and Homestake Ridge along with the past producing Dolly Varden and Torbrit silver mines. It is considered to be prospective for hosting further precious metal deposits, being on the same structural and stratigraphic belts that host numerous other, on-trend, high-grade deposits, such as Eskay Creek and Brucejack. The Kitsault Valley Project also contains the Big Bulk property which 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 in this release relates to, among other things, the 2022 drill program at the Kitsault Valley Project, 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 and our beliefs about the unexplored portion of the property.
These forward-looking statements are based on management’s current expectations and beliefs and assume, among other things, the ability of the Company to successfully pursue its current development plans, that future sources of funding will be available to the company, that relevant commodity prices will remain at levels that are economically viable for the Company and that the Company will receive relevant permits in a timely manner in order to enable its operations, 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“) and management information circular dated January 21, 2022 (the “Circular“), both of which are available on SEDAR at www.sedar.com. The risk factors identified in the MD&A and the Circular 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.
Vancouver, British Columbia–(Newsfile Corp. – September 7, 2022) – Dolly Varden Silver Corporation (TSXV: DV) (OTCQX: DOLLF) (the “Company” or “Dolly Varden“) is pleased to announce that a fourth drill rig has been added to the ongoing Kitsault Valley exploration drill program located in the Golden Triangle of northwest BC. Additionally, based on encouraging visual results, the program has been expanded to include an additional 5,000m of drilling bringing the total planned program to 35,000m.
“Our expanded program will focus on four key areas, prioritizing step-out drilling at Wolf and Kitsol where visual intercepts of mineralization and assays received to-date, have been very encouraging. Additionally, geophysical surveys, surface sampling and mapping have developed multiple exploration drill targets that will be tested during our expanded program,” said Shawn Khunkhun, President and CEO of Dolly Varden Silver.
The additional drilling will be allocated to follow up on exploration success at multiple zones and to test new exploration targets in four key areas:
Continued step-out drilling at the Wolf Deposit where drilling has extended vein mineralization 175m along strike and to a depth of 500m beneath the sediment cover and remains wide open for expansion.
Follow-up drilling to test down-plunge expansion of the mineralization at Kitsol, where drill hole DV22-283 intersected 414 g/t Ag over 50.18m (30.11m true width)(news release, August 10, 2022).
Drill testing several new chargeability anomalies along the western Red Point gold belt recently identified from an Induced Polarization (IP) ground geophysical survey.
Additional Resource Expansion holes to the north of the Homestake Main Deposit
Over 25,000m of drilling in 80 drill holes has been completed to date with three drills. With the addition of the 4th drill, the program is on schedule to drill a total of 35,000m by the end of September 2022.
Initial Drilling at the Wolf Vein followed up on the 2021 intercept of 17.50m averaging 214 g/t Ag and 0.47% Pb including 1.22 m averaging 1,532 g/t Ag, 0.44 g/t Au, 2.11 % Pb and 1.07% Zn (news release, December 20, 2021) and associated alteration underneath the central valley sediment cap has encountered a robust mineralizing system that has been drilled so-far to a depth of 500m and along strike an additional 175m to the southwest. The system remains open thus far and is interpreted to be getting wider closer to the center of the valley fold axis and geophysical anomalies. Assays are currently pending for Wolf Zone drilling.
At the Red Point Prospect, surface grab samples of high level vein float returned 6,280g/t Ag and 106 g/t Ag with 5.82 g/t Au. A subsequent IP line completed by Simcoe Geoscience using their Alpha Wireless Time Domain Distributed IP technology crossed over the zone of veining and shows a strong Chargeability anomaly indicative of sulphides approximately 200m below surface with narrow extensions up to surface where the float samples were collected.
Dolly Varden’s initial program includes 99 drill holes planned in the phase I program. Resource upgrade and down plunge expansion drilling is underway at the Homestake Ridge Deposit with three drills. The fourth drill is performing exploration drilling north of the Homestake Main resource area, testing the projection of the mineralized structures up to 500m north of the deposit.
The Kitsault Valley Project combined current mineral resource estimate contains 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 within a 163 square km consolidated land package.
Quality Assurance and Quality Control
The Company adheres to CIM Best Practices Guidelines for exploration related activities conducted on its property. 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. Vice-President Exploration 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 advancing its 100% held Kitsault Valley Project (which combines the Dolly Varden Project and the Homestake Ridge Project) located in the Golden Triangle of British Columbia, Canada, 25kms by road to tide water. The 163 sq. km. project hosts the high-grade silver and gold resources of Dolly Varden and Homestake Ridge along with the past producing Dolly Varden and Torbrit silver mines. It is considered to be prospective for hosting further precious metal deposits, being on the same structural and stratigraphic belts that host numerous other, on-trend, high-grade deposits, such as Eskay Creek and Brucejack. The Kitsault Valley Project also contains the Big Bulk property which 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 in this release relates to, among other things, the 2022 drill program at the Kitsault Valley Project, 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 and our beliefs about the unexplored portion of the property.
These forward-looking statements are based on management’s current expectations and beliefs and assume, among other things, the ability of the Company to successfully pursue its current development plans, that future sources of funding will be available to the company, that relevant commodity prices will remain at levels that are economically viable for the Company and that the Company will receive relevant permits in a timely manner in order to enable its operations, 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“) and management information circular dated January 21, 2022 (the “Circular“), both of which are available on SEDAR at www.sedar.com. The risk factors identified in the MD&A and the Circular 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.
VANCOUVER, BC, March 11, 2022 /CNW/ – Dolly Varden Silver Corporation (TSXV: DV) (OTC: DOLLF) (the “Company” or “Dolly Varden“) announces that further to is news release dated March 9, 2022, the Company has issued 402,815 common shares in the capital of the Company (“Common Shares“) to Haywood Securities Inc. (“Haywood“) pursuant to a financial advisory agreement between Haywood and the Company. As previously described in the Company’s management information circular dated January 24, 2022 (the “Circular“), Dolly Varden engaged Haywood to provide financial advisory services in connection with Dolly Varden’s acquisition of a 100% interest in the Homestake Ridge gold-silver project from Fury Gold Mines Ltd. (“Fury“), which closed on February 25, 2022 (the “Transaction“). The Common Shares were issued to Haywood at a deemed price of $0.5896 per share for an aggregate value of $237,499, which represents a portion of Haywood’s fee for advisory services they provided to Dolly Varden in respect of the Transaction. The deemed price per share of $0.5896 is substantially equal to the price per share issued by Dolly Varden to Fury and Hecla Canada Ltd. in connection with the Transaction.
Further information regarding the Transaction is provided in the Circular and the Company’s news release announcing closing of the Transaction dated February 25, 2022. The Circular and closing news release are available under the Company’s profile on SEDAR at www.sedar.com.
About Dolly Varden Silver Corporation
Dolly Varden Silver Corporation is a mineral exploration company focused on advancing its 100% held Kitsault Valley Project (which combines the Dolly Varden Project and the Homestake Ridge Project) located in the Golden Triangle of British Columbia, Canada, 25kms by road to tide water. The 163 sq. km. project hosts the high-grade silver and gold resources of Dolly Varden and Homestake Ridge along with the past producing Dolly Varden and Torbrit silver mines. It is considered to be prospective for hosting further precious metal deposits, being on the same structural and stratigraphic belts that host numerous other, on-trend, high-grade deposits, such as Eskay Creek and Brucejack. The Kitsault Valley Project also contains the Big Bulk property which is prospective for porphyry and skarn style copper and gold mineralization, similar to other such deposits in the region (Red Mountain, KSM, Red Chris).
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.
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, March 07, 2022 (GLOBE NEWSWIRE) — Dolly Varden Silver Corporation (TSXV: DV) (OTC: DOLLF) (the “Company” or “Dolly Varden“) is pleased to announce that the Company has entered into an agreement with Research Capital Corporation and Eventus Capital Corp., as co-lead agents and joint bookrunners, on behalf of a syndicate of agents including Haywood Securities Inc. (collectively, the “Agents“) in connection with a best efforts brokered private placement financing (the “Offering“) to raise gross proceeds of up to $10 million from the sale of up to 9.8 million common shares of the Company that qualify as “flow-through shares” as defined under the Income Tax Act (Canada) (the “Offered Shares“) at a price of $1.02 per share (“Offered Price“).
“On the heels of the transformational acquisition of Homestake Ridge, these additional funds will allow the company to aggressively advance one of the largest high-grade, undeveloped silver and gold assets in Western Canada.” commented Shawn Khunkhun, Chief Executive Officer of the Company.
The Agents will have an option (the “Agents’ Option“) to offer for sale up to an additional 15% of the number of Offered Shares sold in the Offering at the Offering Price, which Agents’ Option is exercisable, in whole or in part, at any time up to 48 hours prior to the closing of the Offering.
The net proceeds of the Offering will be used for further exploration, mineral resource expansion and drilling in Kitsault Valley located in northwestern British Columbia, Canada, as well as for working capital as permitted.
In connection with the Offering, the Agents will receive an aggregate cash fee equal to 6.0% of the gross proceeds of the Offering, including in respect of the Agent’s Option.
The securities to be issued under the Offering will be offered by way of private placement in each of the provinces of Canada and such other jurisdictions as may be determined by the Company, in each case, pursuant to applicable exemptions from the prospectus requirements under applicable securities laws.
The issuance of the Offered Shares under the Offering and the payment of the Agents’ commission are subject to the approval of the TSX Venture Exchange, receipt of any other required regulatory approvals and other customary closing conditions. Closing of the Offering is anticipated to occur on or about March 30, 2022. Securities issued under the Offering will be subject to a four-month and-one-day statutory hold period.
Pursuant to the ancillary rights agreement between Hecla Canada Ltd. (“Hecla“) and the Company dated September 4, 2012, Hecla will be entitled to acquire common shares of the Company at a price of $0.86 per share to maintain its pro rata equity interest in the Company. If Hecla exercises its pro rata rights under the ancillary rights agreement, any common shares issued to Hecla will be in addition to those issued as part of the Offering.
Pursuant to the investor rights agreement between Fury Gold Mines Ltd. (“Fury“) and the Company dated February 25, 2022, Fury will be entitled to acquire common shares of the Company at a price of $0.86 per share to maintain its pro rata equity interest in the Company. If Fury exercises its pro rata right under the investor rights agreement, any common shares issued to Fury will be in addition to those issued as part of the Offering.
This release does not constitute an offer to sell or a solicitation of an offer to buy of any securities in the United States. The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or any state securities laws, and may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to available exemptions therefrom.
About Dolly Varden Silver Corporation
Dolly Varden Silver Corporation is a mineral exploration company focused on advancing its 100% held Kitsault Valley Project (which combines the Dolly Varden Project and the Homestake Ridge Project) located in the Golden Triangle of British Columbia, Canada, 25kms by road to tide water. The 163 sq. km. project hosts the high-grade silver and gold resources of Dolly Varden and Homestake Ridge along with the past producing Dolly Varden and Torbrit silver mines. It is considered to be prospective for hosting further precious metal deposits, being on the same structural and stratigraphic belts that host numerous other, on-trend, high-grade deposits, such as Eskay Creek and Brucejack. The Kitsault Valley Project also contains the Big Bulk property which 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 in this release relates to, among other things, completion of the Offering, TSX Venture 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 and our beliefs about the unexplored portion of the property.
These forward-looking statements are based on management’s current expectations and beliefs and assume, among other things, the ability of the Company to successfully pursue its current development plans, that future sources of funding will be available to the company, that relevant commodity prices will remain at levels that are economically viable for the Company and that the Company will receive relevant permits in a timely manner in order to enable its operations, 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“) and management information circular dated January 21, 2022 (the “Circular“), both of which are available on SEDAR at www.sedar.com. The risk factors identified in the MD&A and the Circular 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.
VANCOUVER, BC, Feb. 23, 2022 /CNW/ – Dolly Varden Silver Corporation (“Dolly Varden” or the “Company“) (TSXV: DV) (OTC: DOLLF) is pleased to announce that Hecla Canada Ltd. (“Hecla”) gave notice of their intent to invest $5.3 million dollars concurrent with the completion of the previously announced transaction whereby Dolly Varden will acquired a 100% interest in the Homestake Ridge gold-silver project (“Homestake Project”), located adjacent to the Dolly Varden Project (“DV Project”) in the Golden Triangle, British Columbia (the “Transaction”).
(CNW Group/Dolly Varden Silver Corp.)
Pursuant to the ancillary rights agreement between Hecla and the Company, dated September 4, 2012, Hecla has subscribed for the purchase of 9,048,539 common shares of the Company in accordance with their anti-dilution right in respect of the Transaction for proceeds of approximately $5.3 million to maintain its pro-rata equity interest in the Company. The common shares to be issued to Hecla would be in addition to those issued as part of the Transaction.
About Dolly Varden Silver Corporation
Dolly Varden Silver Corporation is a mineral exploration company focused on exploration in northwestern British Columbia. The DV 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. Adjacent to the DV Project, the Homestake Ridge Project hosts structurally controlled epithermal gold, silver and copper mineralization. Together, the consolidated DV Project and Homestake Ridge Project, to be referred to as the Kitsault Valley Project, create one large, high-grade precious metals project with further synergistic and exploration upside potential. The Kitsault Valley 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). 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 in this release relates to, among other things, potential synergies expected from the combination of the DV Project and Homestake Project, the development potential of the property, the completion of the Transaction and the completion of the Hecla subscription.
These forward-looking statements are based on management’s current expectations and beliefs and assume, among other things, the ability of the Company to successfully pursue its current development plans, that future sources of funding will be available to the company, that relevant commodity prices will remain at levels that are economically viable for the Company and that the Company will receive relevant permits in a timely manner in order to enable its operations, 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.
VANCOUVER, BC, Feb. 22, 2022 /PRNewswire/ – Dolly Varden Silver Corporation (“Dolly Varden” or the “Company“) (TSXV: DV) (OTC: DOLLF), is pleased to announce that the Company’s shareholders have approved (i) the previously announced acquisition of Homestake Resource Corporation (“Homestake“) from Fury Gold Mines Limited (“Fury“) (TSX: FURY) (NYSE American: FURY) (the “Transaction“) and (ii) the resultant creation of a new “control person” of the Company, being Fury, upon completion of the Transaction, at a special meeting of Shareholders held today (the “Meeting“).
At the Meeting, the special resolution approving the Transaction and the creation of a new “control person” was approved by 98.8% the votes cast by Dolly Varden shareholders.
CEO, Shawn Khunkhun remarked “On behalf of the Board of Directors and Management, I would like to extend my gratitude to shareholders for supporting this accretive acquisition and the unification of the Kitsault Valley mineral deposit trend. With investors support, we have now positioned the company as creating one of the largest high-grade, undeveloped precious metals assets in BC’s Golden Triangle.”
Completion of the Transaction remains subject to a number of customary closing conditions, including the final approval of the TSX Venture Exchange (the “TSXV“). Assuming that all conditions to closing of the Transaction are satisfied or waived, the Transaction is expected to be completed on or about February 25, 2022.
Additional information regarding the terms of the Transaction, including a summary of the terms and conditions of the purchase agreement with respect to the Transaction, is set out in the information circular of Dolly Varden dated January 21, 2022, which is filed under Dolly Varden’s SEDAR profile at www.sedar.com.
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 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 Transaction, TSXV approval of the Transaction and the expected closing date of the Transaction. These forward-looking statements are based on management’s current expectations and beliefs and assume, among other things, the ability of Dolly Varden and Fury to satisfy customary closing conditions to the Transaction and the timely approval of the Transaction by the TSXV, 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 TSXV) accepts responsibility for the adequacy or accuracy of this news release.
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.
Shawn Khunkhun:
Shawn Khunkhun:
