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.
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