Mining Co. Uncovers Massive 1,000m Gold Plunge at Homestake Silver

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Dolly Varden Silver Corp. (DV:TSX.V; DVS:NYSEA; DVQ:FSE) has released drilling results that further extend the high-grade gold mineralized plunge within the Homestake Silver deposit, as stated in a December 4 announcement.

Drill hole HR25-475, a 42-meter step-out to the north, is positioned on the upper boundary of the shallowly northward-plunging, high-grade trend, according to the company. The intercept reveals grades of 14.5 grams per tonne gold (g/t Au) and 75 g/t silver (Ag) over 21.18 meters, including 113 g/t Au and 997 g/t Ag over 0.68 meters, and 121 g/t Au and 279 g/t Ag over 0.63 meters. This high-grade mineralization in HR25-475 is part of a larger mineralized zone grading 7.01 g/t Au and 35 g/t Ag over 48.38 meters.

"The expansion of the wide, high-grade gold and silver mineralization in the Homestake Silver Deposit continues to demonstrate the continuity and robustness of the potentially bulk underground mineable zone," stated President and Chief Executive Officer Shawn Khunkhun. "We will continue to release results from the 2025 program as they are received."

Drill hole HR25-475 was a 42-meter step-out to the north from HR24-448 along the plunge of the main gold and silver zone at the Homestake Silver deposit. The high-grade core of the Homestake Silver Deposit has been traced for over 300 meters vertically and extends for more than 1,000 meters along the plunge, the company noted. The intercept is located at the upper boundary of the high-grade trend.

More Than 56,000 Meters Drilled

At Homestake Silver, Dolly Varden reported drilling a total of 56,131 meters across 86 drill holes during the 2025 season. Approximately 40% of this drilling at Homestake Ridge focused on step-outs and local infill along the broader, high-grade gold plunge at Homestake Silver.

The company said it is utilizing directional drilling technology to precisely target areas for step-out and infill holes at Homestake Silver. Drill hole HR25-475 was executed as a single hole using directional drilling to accurately reach the target within the mineralized zone.

Haywood Capital Markets Analyst Marcus Giannini reiterated a Buy rating on the stock with a target price of CA$11.25.

The Homestake Ridge Deposits are interpreted as structurally controlled, multi-phase epithermal vein stockwork and vein breccia systems hosted in Jurassic Hazelton volcanic rocks, according to Dolly Varden. The mineralization consists of pyrite, along with galena and sphalerite, with visible gold in a silica breccia matrix.

The northwest-trending structural corridor hosts multiple subparallel structures that control high-grade gold and silver shoots within a broader mineralized envelope. Although historically considered a silver-rich gold deposit, recent drilling at Homestake Silver has identified a shallow north-plunging dilation zone characterized by a wide mineralized interval with an increased frequency of high-grade gold veins and vein breccias, indicating a shift towards a gold-rich system to the north, the company stated.

The deposit remains open along the plunge and at depth.

Analyst: Gold System Exhibits 'Remarkable Scale'

Jeff Valks, a senior analyst at TheGoldAdvisor.com, highlighted in a December 4 update that the "gold-rich portion of the system continues to behave with surprising scale."

Valks noted, "HR25-475 strengthens the view that the high-grade gold and silver plunge is expanding to the north, with the 42-meter step-out landing at the upper edge of the modeled high-grade trend, consistent with the plunge direction outlined in previous releases." He began his post with the exclamation "PAYDIRT!"

Valks further explained, "Homestake was historically considered a silver-rich gold deposit, but it appears to shift toward gold-dominant mineralization in the north, where a shallow, north-plunging dilation zone has delivered thicker intervals sprinkled with these higher-grade gold veins and vein breccias. The high-grade core of the system has now been traced over more than 300 meters vertically and more than 1,000 meters along plunge. That sort of continuity matters, and so does the fact that the deposit remains open."

Valks maintains a Buy rating on the stock, advising investors to exercise discipline. "These types of stories run in fits and spurts—so accumulate on the dips and then go put your feet on something comfy," he advised, adding, "I hold a long position (and) Jeff Clark holds full weighting."

Company Continues to Expand High-Grade Gold Trend

In a December 4 update, Haywood Capital Markets Analyst Marcus Giannini reiterated a Buy rating on the stock with a target price of CA$11.25, a 74% increase from the current price. "Today’s results reiterate the wide, high-grade nature of gold mineralization at Homestake Silver, as Dolly continues to successfully expand this high-grade gold trend," Giannini wrote. "Although historically considered a silver-rich gold deposit, recent drilling at Homestake Silver has defined a shallow north-plunging dilation zone that is characterized by a wide mineralized interval with increased frequency of high-grade gold veins and vein breccias, indicating a shift towards a gold-rich system towards the north."

Giannini added, "The deposit remains open along plunge and at depth, and we expect expansion of this gold-rich trend to be a focal point of future drilling programs." The analyst also mentioned that the firm anticipates ongoing exploration-related updates from the company in the "coming weeks and months."

The Catalyst: New Gold Peak Anticipated

Commodity analysts at TD Securities predict that factors like lower interest rates, ongoing currency devaluation, supply-side dynamics, and the need for diversification will strengthen commodities and push gold to a new high above US$4,400 in the first half of the year, as reported by Ernest Hoffman for Kitco Metals on December 4.

While silver prices are expected to stabilize in the mid-US$40s, 2026 is projected to be the year when platinum and palladium take the spotlight. In their 2026 commodities outlook, TD Securities indicated they do not anticipate a decline for gold next year but expect new record highs.

"The Fed-driven carry cost reductions, along with an expected yield curve steepening and potential concerns surrounding Fed independence, prompt us to say that the yellow metal will reach a new quarterly record of $4,400/oz in the first six months of 2026," they noted, according to Hoffman. "Looming concerns that the future Fed may not aggressively pursue a 2% inflation target, along with speculation the White House could aggressively lobby for lower rates at a time US debt is at record highs and growing, is a very important reason why we think the bullish gold trend will reassert itself."

The analysts emphasized that these factors would continue to drive U.S. dollar devaluation, de-dollarization, and de-globalization, which will, in turn, support strong central bank gold purchases. "Meanwhile, the start of a broad movement away from classic 60-40 portfolio structure to an asset mix which includes as much as a 25% commodity weighting, along with lower rates, should see investors increase their appetite for the yellow metal," they explained, according to Hoffman.

TD Securities believes gold's new long-term range will be between US$3,500 and US$4,400 per ounce.

"For prices to stay below the lower end of that range, it would take a shift in investor attention back to rising US risk asset prices, or a view change that the US job market will not weaken and no further Federal Reserve rate cuts are on the way," Hoffman reported the analysts as saying. "The absence of the US dollar debasement, de-dollarization and monetization narratives could also do the trick. But we predict the employment environment will weaken, risk markets may have a difficult time rallying next year, and we expect the US central bank to cut an additional 100bps, with 150bps expected by some in the market, even as inflation stays stubbornly above the two percent target. The yellow metal should appreciate into 2026, given lower interest rates at a time inflation is materially above target, U.S. debt rising alarmingly fast, and growing fears that the world will have less need for US dollars and thus less capacity to purchase Treasuries given a high tariff environment."

Gold has been in the spotlight this year, but according to S'thembile Cele and Jack Ryan writing for Bloomberg on December 3, silver is also drawing significant attention. A supply squeeze has driven the precious metal to a 100% increase as of early December, while gold has climbed by 60%. Both metals are experiencing heightened demand from investors seeking protection against political instability, inflation, and currency depreciation.

Unlike gold, silver is not only rare and attractive but also has numerous practical applications that make it a crucial component in various products. With inventories at near-record lows and investors continuing to seek more, there's a potential risk of supply shortages that could impact several industries, the authors noted.

"Silver is an excellent electrical conductor that's used in circuit boards and switches, electric vehicles and batteries," they wrote. "Silver paste is a critical ingredient in solar panels, and the metal is also used in coatings for medical devices. Sustained high prices could erode the profitability of industrial users and spur efforts to substitute silver components for other metals."

Ownership and Share Structure¹

Institutional investors own 52% of the company. Along with Hecla holding 13%, other strategic investors include Fury Gold Mines Ltd. (FURY:TSX) with 12% and Eric Sprott with 9%. The remainder is held by retail investors.

Dolly Varden has 90.88 million outstanding shares and 90.5 million fully diluted shares. Its market capitalization is CA$588.88 million, with a 52-week range of CA$3.21–CA$7.46 per share.