Initial 2022 drill results from Dolly Varden Silver Corp.'s (DV:TSX.V; DOLLF:OTCQX) Homestake Ridge showed "equally compelling high-grade potential" when compared to recent intercepts from the adjoining Dolly Varden property, reported Research Capital Corp. analyst Stuart McDougall in a Nov. 29 research note.
While complete results for all the holes are still in the works, Mcdougall commented that Research Capital continues "to view the available [drill results] as generally supportive of each project's exploration upside."
The new results are from the first-ever drilling at Homestake Ridge since Dolly Varden acquired it earlier in the year and are mostly from infill holes.
This initial batch of holes returned high-and-low-grade mineralization, McDougall noted, and mineralization remains open for potential expansion. Among other highlights, two holes returning high grades are:
- HR22-328: 75.13 grams per ton gold (75.13 g/t Au), 2,337 g/t silver (Ag) and 0.23% copper (Cu) over 1.77 meters (1.77m) starting about 163m downhole, followed shortly after by 216 g/t Au, 113 g/t Ag and 0.48% Cu over 0.5m
- HR22-330: 54.1 g/t Au, 4,890 g/t Ag and 0.11% Cu over 0.39m starting 112m downhole, followed shortly after by two closely spaced intervals averaging 74.8 g/t Au and 20 g/t Ag over 0.39m and 33.8 g/t Au and 14 g/t Ag over 0.81m
Research Capital has a Speculative Buy rating and a CA$1.35 per share target price on Dolly Varden Silver, the current share price of which is about CA$0.84.
As for the low-grade results, McDougall wrote, many reflect "mineralized halos characteristic of the interpreted, structurally controlled, multiphasic epithermal vein and breccia system" at Homestake Ridge.
He described them as being akin to the separate Wolf and Kitsol veins about 6–7.5 kilometers to the south.
Investors can expect more results in the near term, as they have not been returned and reported yet for many of the 108 holes Dolly Varden Silver drilled this season at Homestake Ridge and Dolly Varden.
Research Capital has a Speculative Buy rating and a CA$1.35 per share target price on Dolly Varden Silver, the current share price of which is about CA$0.84.
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