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Cos. Look at Cooperating on BC Mill

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Dolly Varden Silver Corp. and five other companies sign a memorandum of understanding to study the viability of a centralized polymetallic mill in British Columbia.

Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) has signed a memorandum of understanding with five other companies to study the viability of a centralized polymetallic mill at New Moly LLC's Kitsault project.

The mill would take in mineralized material from the companies' deposits and possible new discoveries in northwestern British Columbia and southeast Alaska.

Besides Dolly Varden and New Moly, the other companies are Goliath Resources Ltd. (GOT:TSX.V; GOTRF:OTCQB; B4IF;FSE), BWCG Holding Ltd. (formerly Blackwolf Copper and Gold Inc.), Blackwolf Copper & Gold Ltd. (BWCG:TSX.V) and Coast Copper Corp. (COCO:TSX.V)

The project would serve Dolly Varden's Kitsault Valley project, which hosts an indicated resource of 34.7 million ounces silver (Moz Ag) and 166,000 ounces gold (Au), and inferred resources of 29.3 Moz Ag and 817,000 ounces Au within multiple outcropping deposits.

Recently released drilling results from the Kitsault Valley project revealed the highest-grade assay yet received from the Dolly Varden property.

Hole DV22-329 in the Wolf Vein northeast returned 1,499 grams per tonne (g/t) Ag, 1.8% lead (Pb), and 0.46% zinc (Zn) over 15.94 meters (8.77 meters estimated true width), including 23,997 g/t Ag, 1.24% Pb, and 0.34% Zn over 0.35 meters (0.19 meters estimated true width).

Bob Moriarty of 321 Gold called Dolly Varden's assay results "absolutely staggering" and called the Golden Triangle "one of the most important districts in the world."

Bob Moriarty of 321 Gold called Dolly Varden's assay results "absolutely staggering" and called the Golden Triangle "one of the most important districts in the world."

"Dolly Varden has done an incredible job," Moriarty said. "Anyone interested in investing should go to their website and go through the news because the numbers are absolutely mind-bending."

Technical analyst Clive Maund of on March 17 noted it was "an excellent point to add to positions in Dolly Varden or make fresh purchases."

Research Capital Corp. analyst Stuart McDougall noted the recent results were "generally supportive of each project's exploration upside" and reiterated his Speculative Buy rating for the stock with a CA$1.35 per share target.

"This is easily becoming a prime takeover target — and it’s not done growing,” Jeff Clark of said of Dolly Varden.

The Catalyst: Co. Considers Restarting Project

The proposed mill site at Kitsault formerly hosted a molybdenum mine. It has received federal and provincial permits and New Moly is now considering restarting a larger-scale project at the site given the uses for molybdenum in the new green economy.

Molybdenum is used in many clean, renewable energy generation and storage technologies, including wind, geothermal, solar, nuclear, and hydroelectric.

It has a much smaller market than copper, with a production of just 300,000 tonnes in 2018, noted Reuters senior metals columnist Andy Home.

The proposed New Moly mill site is located on the BC Hydro electrical grid and has road access to the Nass Valley, and tidewater access.

The companies involved in the study have engaged Fuse Advisors Inc. to assess the technical viability of the mill. All the companies will jointly share the costs of the study.

Fuse will look at the potential of blending or batching mineralized material, potential process flowsheets, potential throughputs, and a possible size of the mill and timeline for construction.

"We look forward to working with this collaboration of companies to study the potential synergies that include reduced respective capital, processing costs, as well as reduced permitting timelines and risks by using a permitted site located on tidewater," said Roger Rosmus, founder and chief executive officer of Goliath Resources.

Dolly Varden is 'Pure Silver'

Dolly Varden plans to drill another season at Kitsault Valley to acquire more data for a NI 43-101 compliant Updated Mineral Resource Estimate, which will be the basis for a Preliminary Economic Assessment (PEA) for the whole project.

Moriarty said he believed Dolly Varden could be another Eskay Creek.

Silver demand was expected to reach a new high of 1.21 billion ounces in 2022, 16% more than the previous year, The Silver Institute predicted.

He said most people aren't aware that 70% of the silver produced in the world is a byproduct of copper mining.

"Dolly Varden is pure silver," he said. "The number of pure silver mines in the world is small — only 30% total."

Silver demand was expected to reach a new high of 1.21 billion ounces in 2022, 16% more than the previous year, The Silver Institute predicted.

“Physical investment in 2022 is on track to jump by 18% to 329 Moz, which would also be a new record,” the report said.

The global silver market also was forecasted to record a second consecutive deficit between supply and demand in 2022, the Institute said. At 194 Moz, it would be a multi-decade high and four times 2021’s level.

Streetwise Ownership Overview*

Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX)

*Share Structure as of 3/27/2023

Ownership and Share Structure

Strategic investors own 43% of the company, including Fury Gold Mines Ltd. (FURY-T) with 23%, Hecla Mining Co. (HL:NYSE) with 10%, and mining financier Eric Sprott with 10%, according to the company. About 50% is institutional and the rest is retail.

The company is covered by several analysts, including Michael Gray of Agentis Capital, Geordie Mark of Haywood Securities, and McDougall with Research Capital Corp. Newsletter writers Maurice Jackson, The Critical Investor, Clive Maund, Rick Mills, and Bob Moriarty also follow the company. Click the bottom of the data box above to view more coverage. 

Dolly Varden has a market cap of CA$244.15 million and 254 million shares outstanding, with 231 million shares free-floating, according to the company. It trades in a 52-week range of CA$1.15 and CA$0.355.

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