Massive Silver Drilling Campaign Underway in Golden Triangle
Source: Streetwise Reports
June 7, 2023 (Investorideas.com Newswire) Drills are turning as part of a 45,000-meter exploration campaign at Dolly Varden's flagship Kitsault Valley project in British Columbia's Golden Triangle.
Drills have started turning as part of a massive 45,000-meter exploration campaign at Dolly Varden Silver Corp.'s (DV:TSX.V; DOLLF:OTCQX) flagship Kitsault Valley project in British Columbia's Golden Triangle.
Four diamond-drill rigs are targeting the Wolf Vein ad the Kitsol Vein, the company said. A fifth rig is available as the program progresses at Kitsault Valley, which is comprised of the Homestake Ridge and Dolly Varden properties.
"We have already completed several drill holes at Wolf and Kitsol, where aggressive step-outs in 2022 significantly expanded silver mineralization along strike to the north and south as well as down-dip," Dolly Varden President and Chief Executive Officer Shawn Khunkhun said. "The team is excited to test numerous new target areas beneath the sediment cap with the objective of connecting these two wide and high silver-grade areas."
The Kitsault Valley project hosts an indicated resource of 34.7 million ounces silver (Moz Ag) and 166,000 ounces gold (Au), and inferred resources of 29.3 Moz Ag and 817,000 ounces Au within multiple outcropping deposits.
Recently released drilling results revealed the highest-grade silver assay yet received from the Dolly Varden property.
Hole DV22-329 in the Wolf Vein northeast returned 1,499 grams per tonne (g/t) Ag, 1.8% lead (Pb), and 0.46% zinc (Zn) over 15.94 meters (8.77 meters estimated true width), including 23,997 g/t Ag, 1.24% Pb, and 0.34% Zn over 0.35 meters (0.19 meters estimated true width).
Newsletter writer Rick Mills of Ahead of the Herd called the resource "impressive."
"These resources are contained within multiple outcropping deposits, which makes Kitsault Valley one of the largest high-grade, undeveloped precious metal assets in all of western Canada," Mills wrote on May 16.
In addition to the step-out holes and exploration drilling at Wolf and Kitsol, several new targets will be tested, including the projection of the Moose Vein under the sediment cap.
"The priority of the 2023 exploration program is to connect the Wolf deposit with the Kitsol deposit, located 1,400 meters apart," Mills wrote.
There's a "tremendous opportunity" at the site, Khunkhun told investors at the OTC Markets Metals and Mining Hybrid Conference in May. "I've just taken five drill rigs to site," he said. "They're mobilizing. They're getting the camp ready."
The Catalyst: 'Dolly Varden Is Pure Silver'
Bob Moriarty of 321 Gold has called Dolly Varden's assay results "absolutely staggering" and called the Golden Triangle "one of the most important districts in the world."
"Dolly Varden has done an incredible job," Moriarty said. "Anyone interested in investing should go to their website and go through the news because the numbers are absolutely mind-bending."
Technical analyst Clive Maund of CliveMaund.com noted in March it was "an excellent point to add to positions in Dolly Varden or make fresh purchases."
Source: Dolly Varden Silver Corp.
And Research Capital Corp. analyst Stuart McDougall noted that the company's drilling results were "generally supportive of each project's exploration upside." He has rated the stock a Speculative Buy with a CA$1.35 per share target.
Moriarty said he believed Dolly Varden could be another Eskay Creek, which has historically produced 160 Moz Ag and 3.3 Moz Au.
Most people aren't aware that 70% of the silver produced in the world is a byproduct of copper mining, he said.
"Dolly Varden is pure silver," he said. "The number of pure silver mines in the world is small - only 30% total."
Opportunity for Resource to Grow
The opportunity remains to grow the resource at Kitsault Valley, Khunkhun told the OTC Markets conference.
"These deposits have not been drill tested below 300 meters, so there's a tremendous opportunity at depth," he said.
Khunkhun said he believed merger and acquisition activity is about to increase in the area.
"We've got a high level of institutional ownership. We've got great liquidity. We have no debt. We've got over $26 million in the bank. So, we're fully funded. And I think one of the reasons we've been successful is we've been well capitalized," he said.
More Mines Needed
Silver is used to coat electrical contacts and is an important element in solar technology. Almost all computers, phones, cars, and appliances contain it.
According to the World Silver Survey 2023, published by the Silver Institute, the industry saw a 237.7-million-ounce (Moz) deficit in 2022, "most likely also an all-time record."
"The combined 2021 and 2022 deficits more than offset the cumulative surpluses of the previous 11 years," the institute wrote. "We believe that 2023 will see much of a repeat of last year." [OWNERSHIP_CHART-5439]
Mills wrote, "To satisfy future demands, it's clear that more silver mines must be developed to reverse this trend. The focus has to be on promising silver explorers and mine developers that could contribute to the future supply chain."
Ownership and Share Structure
Strategic investors own 43% of the company, including Fury Gold Mines Ltd. (FURY-T) with 23%, Hecla Mining Co. (HL:NYSE) with 10%, and mining financier Eric Sprott with 10%, according to the company. About 50% is institutional, and the rest is retail.
The company is covered by several analysts, including Michael Gray of Agentis Capital, Geordie Mark of Haywood Securities, and McDougall with Research Capital Corp. Newsletter writers Maurice Jackson, The Critical Investor, Clive Maund, Rick Mills, and Bob Moriarty also follow the company.
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Dolly Varden has a market cap of CA$215.61 million and 255 million shares outstanding, according to the company. It trades in a 52-week range of CA$1.24 and CA$0.355.
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