Dolly Varden Silver Corp. (DV:TSX.V; DVS:NYSEA; DVQ:FSE) had its analyst coverage by Research Capital Corp. resume after closing of the junior miner's recent equity financing on which the investment firm acted as an agent, Analyst Stuart McDougall reported in a Nov. 10 research note. The investment firm rated Dolly Varden Speculative Buy and assigned it a 31% higher target price on expectations for a much larger resource.
"In light of recent drill results, we now assume 50% more ounces are outlined at the flagship Kitsault Valley project in British Columbia's Golden Triangle instead of 25%, in addition to the 25% upside factor we maintain on gold," Research Capital Corp.'s McDougall wrote. "Furthermore, we now value those ounces at US$4 per ounce (US$4/oz) and US$100/oz instead of US$3/oz and US$75/oz, [respectively], bringing our metrics more in line with comparable companies."
McDougall reiterated that the current combined Measured and Indicated resource of the Homestake Ridge and Dolly Varden projects is 4,153,000 tons of 1.24 grams per ton gold (1.24 g/t Au) and 260 g/t silver (Ag) for 165,993 ounces of contained gold and 34,700,986 ounces of contained silver.
The combined Inferred resource is 6,830,300 tons of 3.72 g/t Au and 133 g/t Ag for 816,719 ounces of contained gold and 29,274,563 ounces of contained silver.
46% Upside Possible
Research Capital's new target price on Dolly Varden is CA$7.60 per share (CA$7.60/share), up from CA$5.80 before, noted McDougall. At the time of the analyst's report, the Canadian explorer was trading at about CA$5.21/share, reflecting a 46% return to target.
Dolly Varden has 91.8 million shares outstanding. Its market cap is CA$478.34 million. Its 52-week range is CA$3.21–7.46/share.
Contributors to Resource
Dolly Varden Silver's broader Kitsault Valley exploration property encompasses the Homestake Ridge project with three deposits, including Homestake Silver, in the north, and the Dolly Varden project with four deposits, in the south.
McDougall highlighted the bonanza grades and bulk mining potential of three components of Kitsault Valley: Homestake Ridge, Homestake Silver, and the Wolf vein. The ounces at each should significantly boost the existing total resource.
Updated MRE Coming
The technical report on Homestake Ridge is outdated. Last updated in 2023, after Dolly Varden acquired the project from Fury Gold Mines Ltd. (FURY:TSX), McDougall explained, the report merely combined and confirmed the pre-existing resource models.
As such, it does not include results of the 376 holes over 176,000 meters (176,000m) drilled subsequently, the most recent 84 holes over 56,000m of which were completed as recently as this summer. Therefore, Dolly Varden is updating the Homestake Ridge mineral resource estimate and is on track to complete it in H1/26.
Gold and Silver Ounces
On a combined basis, the Homestake Silver deposit accounts for more than one-third of Homestake Ridge's contained silver and one-quarter of its contained gold, or 3,350,000 tons averaging 3.13 g/t Au and 146 g/t Ag, reported McDougall.
Stepout hole HR25-456, drilled this year, supported two previous 2024 stepout holes. The newer hole intersected three closely spaced intervals about 45m along strike of one of the 2024 holes and 30m updip of the other. Grades from HR25-456 were impressive, averaging 50 g/t Au and 27 g/t Ag over the entire 6.8m section. In the first 0.52m of this section, grades included 216 g/t Au and 138 g/t Ag. In the final 1.3m, grades were 166 g/t Au and 79 g/t Ag.
"Mineralization remains open along plunge and at depth, suggesting the story's exploration upside remains fully intact," McDougall wrote. "True widths are still estimated at 55–75%, so we view the enrichment zone to be of potential mineable width even at the lower end of that range."
Up to 10,700 G/T Silver
At the Dolly Varden project, the Wolf vein "has been delineated several hundred meters beyond the known resource, giving us confidence in our upside expectations," wrote McDougall. The most recent confirmation of the vein's potential came in drill results released in early September, showing remarkable silver grades. Specifically, infill hole DV25-446 returned 21.7m of 0.51 g/t Au, 1,422 g/t Ag, and 4.47% lead+zinc (Pb+Zn), starting at 816m downhole.
That broader section contained 5.28m of 1.58 g/t Au, 4,554 g/t A,g and 7.18% Pb+Zn. Within that, there was an even more impressive section, 1m of 2.54 g/t Au, 10,700 g/t Ag, and 6.01% Pb+Zn.
"True widths are estimated at 55–65%, lending more support to the potential use of bulk mining methods for some, if not all, the deposit," McDougall added.
On the Horizon
Potential near-term catalysts for Dolly Varden Silver include project updates throughout Q4/25 and H1/26, on an ongoing basis, noted McDougall. Also in H1 of next year, the updated Homestake Ridge mineral resource estimate is due out.
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Important Disclosures:
- Dolly Varden Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
- 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.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- 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 10, 2025
Company Description: Dolly Varden Silver Corp. is a mineral exploration company focused on the Dolly Varden and adjoining Homestake Ridge properties, located near Stewart, British Columbia. The projects contain multiple zones and prospects associated with the same structural and stratigraphic belts that host numerous high-grade deposits in the region, such as Eskay Creek. Risks: Dolly Varden Silver Corp's projects are exposed to a variety of business risks, including, but not limited to: unexpected development or operating issues; unforeseeable environmental issues or concerns; permitting factors; commodity and currency fluctuations; and adverse resource or reserve updates. External financing requirements are also key risks, owing to the company's lack of operating cash flow. Important Disclosures 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. 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. Relevant Disclosures Applicable to Companies Under Coverage Information about Research Capital Corporation's Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating catergories is available on our website at www.researchcapital.ca General Disclosures Research Capital Corporation publishes research and investment recommendations for the use of its clients. The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation ("RCC") are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Contents of this report cannot be reproduced in whole or in part without the express permission of Research Capital Corporation. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions. Distribution Policy Through www.researchcapital.com, our institutional and corporate clients can access our research as soon as it becomes available, 24-7. New reports are continually uploaded to the site as they become available throughout the day. Clients may also receive our research via Reuters, Bloomberg, FactSet, and Capital IQ. All of our research is made widely available at the same time to all Research Capital client groups entitled to our research. In addition, research reports are sent directly to our clients based on their delivery preference (mail, fax, e-mail). Fair Dissemination of Research Reports and Ratings To the extent reasonably practicable, Research Reports will be disseminated contemporaneously to all of Research Capital Corporation ("RCC") customers who are entitled to receive the firm's research. Until such time, Research Analysts will not discuss the contents of their reports with Sales and Trading or Investment Banking employees. RCC equity research is posted to our proprietary website to ensure eligible clients receive coverage initiations and changes in rating, targets and opinions in a timely manner. Additional distribution may be done by the sales personnel via email, fax or regular mail. Please contact your Investment Advisor or Portfolio Manager for more information regarding RCC research.
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