Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) announced the recent drill results from its Homestake silver deposit in a press release on January 16, 2023. According to the press release, the results include 23 drill holes covering approximately 12,150m of the deposit.
The company reports that drill hole HR23-419 found 315 grams per tonne (g/t) of silver equivalent (AgEq) across 79.20m, including 1,508 g/t AgEq across 9.22m, and 7,572 g/t AgEq over 1.05m; drill hole HR23-416 found 357 g/t AgEq across 93.95m, including 2,802 g/t AgEq across 9.16m, 4,176 g/t AgEq over 2.26m, and 9,422 g/t AgEq over 1.02m; HR23-415 found 630 g/t AgEq over 22.80m, including 1,754 g/t AgEq across 6.80m, and 4,617 g/t AgEq across 0.88m; drill hole HR23-413 found 226 g/t AgEq across 40.00m, including 668 g/t AgEq across 3.96m, and 1,998 g/t AgEq across 0.63m; drill hole HR23-407 found 246 g/t AgEq across 55.90m, including 932 g/t AgEq across 10.72m, 2,149 g/t AgEq across 0.57m, and 1,883 g/t AgEq across 2.20m; and drill hole HR23-411 found 445 g/t AgEq across 10.55m, including 2,068 g/t AgEq across 0.55m.
Drill holes HR23-416 and HR23-419 were also interesting because they revealed more geological information about the area surrounding the historical drill hole HR09-161, including a down dip spacing of 105m on the vertical cross-section, the company stated.
Shawn Khunkhun, the CEO of Dolly Varden, commented, "The 2023 drilling at Homestake Silver has identified a substantial zone of exceptional precious metal grades, often typified by multiple phases of silver and gold mineralization, over wide, continuous intervals that are potentially amendable to bulk underground mining methods. Results from additional step-out holes to the north of these intercepts are being finalized and are expected to be announced shortly."
Silver Set to Shine in 2024
On December 12, 2023, Chen Lin of the What is Chen Buying? What is Chen Selling? newsletter reviewed the silver market and made some predictions for 2024. According to Lin, demand for silver is being driven by manufacturing needs for solar panels.
Lin stated, "Solar panel innovation, meanwhile, has reached an inflection point. In order to increase efficiency, 25-150% more silver is needed for the future generation of solar panels." Lin believes that there will continue to be a silver deficit, as silver producers were unable to close the gap even before the uptick in demand from the green energy sector.
Late last year, Rick Mills with Ahead of the Herd predicted that silver will keep going strong for the foreseeable future. Mills highlighted the silver deficit, along with the demand for silver in electronics.
Mills commented on the severity of the deficit, "it took just two years for the undersupply — the 2022 deficit and the 51.1 million oz shortfall from 2021 — to wipe out the cumulative surpluses from the previous decade."
Strong Investor Support
Rick Mills reviewed the company on December 12, 2023, and spoke of it positively. Mills focused on the company's strategic investments from Hecla Mining Co. and Eric Sprott. Mills commented on Hecla's investment, "It tells me a lot about the quality of management in Dolly Varden and the quality of its project. It's a quality company with a quality project, and it is one of my favorites in the silver space."
Chris Temple with The National Investor reviewed the company on November 8, 2023, and rated the company as a "Buy" for investors based on the company's gold and silver findings in the Kitsault Valley Project. Temple notes that this may be a good entry point for investors.
The company has a number of catalysts, as it continues to uncover high-grade mineralization, and a solid foundation of strategic investments, especially from Hecla.
Ownership and Share Structure
Streetwise Ownership Overview*
Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 0.10% of the company. According to Reuters, Director Darren P. Devine owns 0.07% of the company with 0.20 million shares, Director James Anthony Sabala owns 0.02% of the company with 0.05 million shares, and Director Robert John McLeod owns 0.01% of the company owns 0.04 million shares.
Reuters reported that strategic investors own 41.55% of the company, as Fury Gold Mines, Ltd. owns 22.04% of the company with 59.50 million shares, Hecla Mining Co. owns 10.02% of the company with 27.04 million shares, and 2176423 Ontario, Ltd. owns 9.49% of the company with 25.63 million shares.
According to Reuters, institutions own approximately 12.81% of the company. According to Reuters, Fidelity Management & Research Company L.L.C. owns 6.30% of the company with 17.00 million shares, Sprott Asset Management L.P. owns 2.01% of the company with 5.44 million shares, E.T.F. Managers Group, L.L.C. owns 1.65% of the company with 4.46 million shares, Mirae Asset Global Investments (U.S.A.) L.L.C. owns 1.36% of the company with 3.66 million shares, U.S. Global Investors, Inc., owns 1.02% of the company with 2.75 million shares, D.W.S. Investment GmbH owns 0.28% of the company with 0.75 million shares, and Charteris Treasury Portfolio Managers Limited owns 0.19% of the company with 0.50 million shares.
Reuters reports that there are 270 million shares outstanding with 157.53 million free float traded shares, while the company has a market cap of CA$158.89 and trades in the 52-week period between CA$0.58 and CA$1.24.
|Want to be the first to know about interesting Silver investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter.
- Dolly Varden Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- 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.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
For additional disclosures, please click here.