Dolly Varden Silver Corp.'s (DV:TSX.V; DOLLF:OTCQX) first results from the 2023 drill program at its Kitsault Valley project in British Columbia extended mineralization in two key areas, reported Research Capital Corp. analyst Stuart McDougall in an Aug. 8 research note.
Notable 93% return
Accordingly, Research Capital reiterated its CA$1.35 per share target price on Dolly Varden, currently trading at CA$0.70 per share in comparison, McDougall wrote.
This price difference implies a significant potential return for investors, of 93%.
Dolly Varden remains Speculative Buy rated.
At a glance
The purpose of the Canadian explorer's current drill program at Kitsault Valley is to confirm and expand the existing resources, noted McDougall. The company just added a fifth rig to drill another 10,000m designated for new exploration targets and has the funds for the work.
Initial 2023 drill results encompass 11 holes and pertain to the Kitsol vein and the Torbrit Main deposit. McDougall presented the highlights of the findings.
Kitsol vein results
As for Kitsol, three holes extended the previously identified high-grade silver mineralization there, reported McDougall. Specifically, holes DV23-334 and DV23-336 extended the vein's high-grade plunge by 40 meters (40m) closer to surface, taking it to 250m.
DV23-334 showed 7.21m of 297 grams per ton silver (297 g/t Ag), beginning 63m downhole, including 0.78m of 1,090 g/t Ag.
DV23-336 returned 15.59m of 342 g/t Ag, starting 70m downhole, including 0.42m of 2,270 g/t Ag and 0.51m of 995 g/t Ag.
Hole DV23-337 extended the vertical dimension of the high-grade plunge about 50–75m along strike. One highlight intercept from this hole was 7.94m of 496 g/t Ag beginning 122m downhole, including 0.61m of 1,100 g/t Ag.
One exploration hole, DV23-338, intersected what Dolly Varden described as a block of the Kitsol vein along a splay, near the Moose Lamb fault. The hole showed 0.33m of 14 g/t Ag. The company intends to follow up this result after doing more modeling.
Torbrit Main extension
McDougall also reported that stepout hole DV23-348 extended this deposit along strike to the south. The hole showed 3.5m of 334 g/t Ag beginning at 86m downhole, including 1.34m at 672 g/t Ag.
Upcoming catalysts
Investors should watch for additional and ongoing project updates, any of which could move up Dolly Varden's stock price, McDougall noted.
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