Dolly Varden Silver Corp.'s (DV:TSX.V; DOLLF:OTCQX) newly reported drill results infilled and extended mineralization at its Homestake Ridge precious metals project in British Columbia, reported Stuart McDougall, Research Capital Corp. analyst, in a Jan. 30 research note.
"Mineralization also remains open for possible expansion with additional drilling," McDougall added.
This new batch of drill results is the second one Dolly Varden has released since it acquired Homestake Ridge in February 2022. Most of these data are for infill holes the Canadian exploration company drilled in Homestake Ridge's Main zone last year with the goal of upgrading existing Inferred resources, which stand at 5,545,000 tons.
Highlight Infill Results
The results comprise a mix of high- and low-grade mineralization, McDougall wrote and presented the high-grade highlights:
Infill hole HR22-333:
- 13.95 grams per ton gold (13.95 g/t Au) and 196 g/t silver (Ag) over 0.78 meters (0.78m)
- About 112 g/t Au, 162 g/t Ag and 0.37% copper (Cu) over 9.84m, including
- 1,145 g/t Au, 826 g/t Ag and 0.51% Cu over 0.48m
These intercepts were enclosed by an envelope returning 3.71 g/t Au, about 10 g/t Ag and 0.07% Cu over 15.12m.
Infill hole HR22-359:
- 0.74 g/t Au, 6,420 g/t Ag and 0.11% Cu over 0.5m
- 49.49 g/t Au, 50 g/t Ag and 0.96% Cu over 1.52m
- 46.2 g/t Au and 6 g/t Ag over 0.5m
Standout Stepout Results
Other newly reported results are from stepout holes Dolly Varden drilled last year in Homestake Ridge's Silver zone. McDougall included the best ones in his report:
Stepout hole HR22-362:
- 1,252 g/t Ag over 2.5m, including
- 3,330 g/t Ag over 0.75m
"The intercept sits 200m downdip of the resource and, in our view, clearly points to expansion potential at depth," McDougall wrote.
Stepout hole HR22-366:
- 2,760 g/t Ag, 0.7 g/t Au and 0.06% Cu over 0.57m, starting about 473m downhole
As for the low-grade results from Homestake Ridge, many of them, McDougall wrote, reflect "mineralized halos characteristic of the interpreted structurally controlled, multiphasic epithermal vein and breccia system there, similar to the separate Wolf and Kitsolf veins, located 6–7.5 kilometers to the south."
McDougall also reported Dolly Varden is well cashed up to continue advancing Homestake Ridge, having about CA$28 million in cash as of year-end 2022.
Research Capital has a Speculative Buy rating and a CA$1.35 per share price target on Dolly Varden, which is currently trading at CA$1.03 per share.
|Want to be the first to know about interesting Gold, Base Metals and Silver investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter.||Subscribe|
1) Doresa Banning wrote 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.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Dolly Varden Silver Corp. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Dolly Varden Silver Corp., a company mentioned in this article.
Disclosures For Research Capital Corp., Dolly Varden Silver Corp., January 30, 2023
Analyst Certification: I, Stuart McDougall, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.
General Disclosures: The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation ("RCC") are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions.
Company Specific Disclosures: Within the past 12 months, Research Capital has provided investment banking services to the issuer.
Potential Conflicts of Interest: All Research Capital Corporation ("RCC") Analysts are compensated based in part on the overall revenues of RCC, a portion of which are generated by investment banking activities. RCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. RCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned in our Research Reports as principal or agent. RCC makes every effort possible to avoid conflicts of interest, however readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.
RCC USA: Information about Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is available on our website at www.researchcapital.ca. The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Research Capital Corporation assume any responsibility or liability. Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. Contents of this report cannot be reproduced in whole or in part without the express permission of Research Capital Corporation. US Institutional Clients – Research Capital USA Inc., a wholly owned subsidiary of Research Capital Corporation, accepts responsibility for the contents of this report subject to the terms and limitations set out above. US firms or institutions receiving this report should effect transactions in securities discussed in the report through Research Capital USA Inc., a Broker – Dealer registered with the Financial Industry Regulatory Authority (FINRA).