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TICKERS: DV; DOLLF

Silver Exploration Co. Hits More Bonanza Grades
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This bodes well for the possibility of bulk mining at this silver-gold project in British Columbia, noted a Research Capital Corp. report.

Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) encountered more bonanza gold grades while drilling the Homestake Silver deposit at its Kitsault Valley project in northwestern British Columbia, reported Research Capital Corp. analyst Stuart McDougall in a November 4 research note.

These results "bolster [the] potential for bonanza grades and bulk mining potential," McDougall wrote.

15% Uplift Implied

McDougall reiterated Research Capital's target price of CA$1.45 per share on the Canadian explorer.

"Our target price still reflects an assumed 25% increase in both metals for that and the project's six other zones, valued at US$3 per ounce (US$3/oz) and US$75/oz, respectively, adjusted for options," the analyst explained.

Dolly Varden Silver's share price at the time of the report was about CA$1.26. The difference between the current and target prices suggests a 15% return.

The company remains a Speculative Buy.

Takeaways From Results

McDougall discussed the new drill results. Dolly Varden Silver reported the results of five holes, and three of them showed grades higher than the resource averages. Hole HR24-432, for example, returned "a spectacular" 701 grams per ton gold (701 g/t Au) and 184 g/t silver (Ag) over 0.54 meters (0.54m). This hole, collared 65m along strike of hole HR24-435, also showed 13.94m, averaging 29.24 g/t Au and 16 g/t Ag.

Another intercept, from hole HR-435, collared in the deposit's central area, confirmed the potential for tonnage in the higher-grade core. It demonstrated 34.93m averaging 12.23 g/t Au and 84 g/t Ag, including three higher-grading subintervals. These were 74.15 g/t Au and 376 g/t Ag over 2.43m, 34.98 g/t Au and 75 g/t Ag over 2.43m, and 54.4 g/t Au and 346 g/t Ag (plus 17.28% lead and zinc) over 1m.

Other highlight results included:

  • 0.7m of 12.64 g/t Au and 10.1 g/t Ag over 0.7m, from hole HR24-445. This was followed shortly by 0.5m at 8.75 g/t Au and 28.2 g/t Ag over 0.5m, which undercut hole HR24-435 by about 250m. The enclosing halo averaged 2.18 g/t Au and 5.25 g/t Ag over 14.11m.
  • 9.95m averaging 4.58 g/t Au and 6 g/t Ag, from hole HR24-442, which undercut hole HR24-432 by about 250m. The last 1.69m downhole returned grades of 14.96 g/t Au and 14 g/t Ag, "suggesting potential for expansion of the higher grades at depth," noted McDougall.

True widths were estimated at 70–85% of the core lengths.

More Results To Come

The technical report for Homestake Ridge, updated in March 2023, confirmed previous resources, McDougall reported. It combined and included the results of two previous sets of drill programs. One set encompassed 91,000m of drilling between 2019 and 2024 in the original Dolly Varden block. The other included about 50,000m drilled between 2022 and 2024 on the northern Homestake Ridge block.

Drill results from this year are pending for 23 of the 69 holes drilled over 31,726m. These data and other project updates, expected in the near term, could boost Dolly Varden Silver's share price.


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Important Disclosures:

  1. 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.
  2. 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.
  3. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Disclosures for Research Capital Corp., Dolly Varden Silver Corp., November 4, 2024

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.

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