Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) released data from the final holes of the 2024 drill campaign at its Kitsault Valley project in British Columbia, reported Haywood Securities Analyst Marcus Giannini in a Feb. 3 research note.
"Notably, these latest results have successfully expanded and infilled multiple high-grade gold and silver-rich zones within the Homestake Silver deposit, where the company continues to delineate a high-grade gold trend," Giannini wrote.
138% Gain Implied
On the news, Haywood reiterated its CA$2.40 per share price target on the Canadian explorer, the analyst wrote. The investment firm considers Dolly Varden Silver's high-grade mineral endowment an "increasingly attractive target" for larger precious metals producers focused on North America.
The company's current share price is about CA$1.01. From this price, the return to target is 138%.
Dolly Varden Silver remains a Buy.
New Emerging Gold-Rich Zone
Giannini highlighted the standout stepout and infill drill results in this final set from Homestake Silver. As for stepout holes, HR24-431 intersected 21.55 grams per ton gold (21.55 g/t Au) and 27 g/t silver (Ag) over 8.72 meters (8.72m). This contained a higher-grade portion of 47.92 g/t Au and 58 g/t Ag over 3.74m, including 91.1 g/t Au and 114 g/t Ag over 0.51m.
HR24-431, which stepped out to the north, was one of five holes testing Homestake Silver's northern extension. To achieve this, Dolly Varden Silver targeted the area 180m downplunge from hole HR23-410, previously reported to have hit 10.17 g/t Au over 6.61m.
Another standout hole, HR24-433, stepped out to the east of the main Homestake Silver trend. It encountered 3.48 g/t Au and 13 g/t Ag over 29.5m, including a higher-grade subinterval of 35.05 g/t Au and 114 g/t Ag over 2.32m.
"While lower grade, this interval demonstrated impressive continuity and represents a new gold-rich zone," Giannini commented. "Looking ahead, we expect the company to continue to expand on this emerging gold trend, particularly in areas extending toward the Homestake Main deposit which remains open."
Results of recently reported infill drill holes reiterated continuity of existing mineralization. Two examples were HR24-437 and HR24-438. The former intersected 5.54 g/t Au and 97 g/t Ag over 10.2m. The latter showed 4.48 g/t Au and 16 g/t Ag over 14.33m.
Overall, Giannini wrote, drilling at Homestake Silver keeps returning significant gold mineralization over meaningful widths. This bodes well for additional upside going into the 2025 drilling season and for a potential bulk-tonnage operation.
More Drilling This Year
Dolly Varden Silver is in the midst of planning its 2025 drill program at Kitsault Valley, reported Giannini, to continue testing regional exploration targets and fill in drill spacing gaps. The overall objective is to expand the project resource sufficiently to support an updated mineral resource estimate that could be released in late 2025-early 2026.
However, with so many opportunities for resource growth, both within the known deposits and through regional exploration, Dolly Varden Silver could justifiably push back release of the updated mineral resource estimate, purported Giannini. Whether the company does this or not, 2025 is sure to be catalyst rich.
Dolly Varden Silver is well-capitalized to carry out its exploration program this year, and Haywood expects it to be more robust than 2024's that consisted of 69 holes over 31,726m.
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