Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) had an incredibly busy February and is not slowing down any time soon. Given that management consistently delivers what it says it will and given the explorer's prospects, it is no wonder Bob Moriarty of 321gold just selected the company as a 2022 top junior stock.
"[The company] is absolutely brilliant, the addition of Fury is good," Moriarty said in a recent interview. "You've got the potential for far higher silver, and certainly Dolly Varden is going to be one of the leading silver stocks."
Focused on Consolidated Properties
The Canadian mining company is actively working to advance its 163-square-kilometer Kitsault Valley silver-gold project, one of the largest high-grade and undeveloped precious metals assets in British Columbia's (B.C.'s) Golden Triangle. This area, the southern portion, is well-known for its precious and base metals deposits. The jurisdiction is both mining friendly and geopolitically safe, a rare advantage for a primarily silver company.
Kitsault Valley is comprised of two portions: Dolly Varden in the south and Homestake Ridge in the north. In a strategic move, the company acquired Homestake Ridge late last year from Fury Gold Mines, thereby consolidating the two adjacent properties. Combining them also creates economies of scale and exploration and development synergies. Technical reports have been prepared and are publicly available on both properties.
Existing Mineral Resources
The Dolly Varden portion of Kitsault Valley boasts four known deposits, Wolf, North Star, Dolly Varden and Torbrit, the latter two being past producers.
About 86,000 meters (86,000m) have been drilled at the Dolly Varden property since 2017, which resulted in new discoveries. For instance, 2021 drilling at Torbrit identified wide intervals of mineralization that connect Torbrit with lesser drilled North Star to the west.
An updated resource estimate for Dolly Varden done in 2019 amounted to 44,000,000 (44 Moz) of silver in total, comprised of 32.9 Moz of silver of Indicated resources and 11.477 Moz of silver Inferred.
Still, only 3% of the Dolly Varden property has been explored extensively. This means significant potential for additional discoveries there exists.
Kitsault Valley's other part, Homestake Ridge, contains three known deposits: Homestake Main, Homestake Silver and South Reef. The roughly 90,000m of drilling done at Homestake Ridge to date resulted in a 2014 total Indicated and Inferred resource, of high-grade gold and silver plus copper and lead, of 6,280,000 tons.
The Indicated mineral resource of Dolly Varden and Homestake Ridge combined consists of 34.7 Moz of silver and 166,000 ounces (166 Koz) of gold. The combined Inferred resource is made up of 29.3 Moz of silver and 817 Koz of gold.
Given its current total resource of 138 Moz of silver equivalent, Dolly Varden Silver is trading at $1 per ounce in the ground. Thus, the company offers investors natural leverage to silver.
2022 Drilling Plan
This year, Dolly Varden Silver intends to drill between 30,000m and 50,000m at Kitsault Valley, which is three to five times the amount completed in 2021.
About 75% of 2022 drilling will be a combination of infill, to upgrade the existing mineral resources, and stepout, to test for mineralization of the known deposits at depth and outside the existing resources.
The remaining 25% will be exploration drilling. The primary target is the new unexplored, consolidated border between Wolf and South Reef, the roughly 5.4 kilometers trending toward the gold and silver deposits at Homestake Ridge. The prospects are good in light of geological and geochemical modeling indicating the potential for more deposits in this area.
Once drilling is complete, Dolly Varden Silver will prepare a new resource estimate for the combined Kitsault Valley project. The report will incorporate Dolly Varden drill results since 2018 and Homestake Ridge drill results from 2022.
As for finances, Dolly Varden Silver is well-situated to undertake this ambitious work plan. This is because it is raising $10 million ($10M) in capital via a flow-through private placement, announced earlier in March. It also has $5.3M that it received from Hecla Mining in February.
Dolly Varden Silver aims to continue increasing shareholder value by further derisking Kitsault Valley and making new discoveries on its vast B.C. land package.
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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