Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) is a mineral exploration company concentrated on advancing its 100%-held Kitsault Valley Project in British Columbia's Golden Triangle. According to the company, " the project hosts a high-grade mineral resource of silver and gold and is considered prospective for hosting further precious metal deposits."
The mineral exploration company has had a myriad of coverage for years, and a positive outlook is customary.
Coverage
In January, Rick Mills of Ahead of the Herd listed Dolly Varden as one of his top seven picks for 2022. In this, he said, the Kitsault Valley project would "benefit from synergies when developed into a mine." It seems the company has not disappointed.
Analysts Stuart McDougall of Research Capital has been a fan of the company for a while now. In a Feburary 27, 2022 report, he reiterated his Speculative Buy rating in light of the company completing its acquisition at Homestake Ridge.
Dr. Geordie Mark of Haywood has also been covering the company.
Dr. Geordie Mark of Haywood said, "We believe that now is the right time for leverage in precious metals through investment in Dolly Varden Silver
"We see multifaceted opportunities for Dolly Varden [Silver], which has clear value accretion and rerating equity potential over the near to midterm on drill bit and other related news," he wrote in an October 21 report.
Then on November 7, Mark wrote, "we see significant growth potential around the Kitsol vein and a similarly oriented epithermal vein system to the north (e.g.,) Wolf, which, with the 2022 exploration data, elevate the understanding of geological controls and potential continuity of precious metals mineralization on the project area."
You can click "See More Live Data" in the data box above to view more of what these three are saying.
New Drill Results
The company has been in the news repeatedly with compelling results.
On November 21, 2022, the company announced it " had dramatically extended the limits of silver mineralization at the Wolf vein through wide-spaced stepout drilling." Haywood Capital Markets reported these results, giving the company a Buy rating and a CA$1.60 target price.
Highlights of this included:
- DV22-311: 412 g/t Ag over 12.80 meters, including 2.15 meters, grading 1,646 g/t Ag, 2.38% lead, 3.10% zinc, and 0.10 g/t Au;
- DV22-316: 551 g/t Ag over 9.80 meters, including 3.60 meters, grading 1,049 g/t Ag, 1.19% lead, and 0.29% zinc.
On November 29, 2022, the company reported new drill results at its Homestake property.
Shawn Khunkhun, the president and chief executive officer of Dolly Varden, commented that "Our 2022 drill program has truly been exceptional. The recently acquired Homestake Ridge deposit has delivered more high-grade gold and silver values, commonly with strong copper mineralization."
Two notable holes were:
- 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
Now is the Time to Buy
In light of the results, analysts Stuart McDougall of Research Capital commented that "the update follows ones from the adjoining Dolly Varden claims and, in our
view, demonstrates equally compelling high-grade potential." After this, McDougall reiterated that he is maintaining his Speculative Buy rating and CA$1.35 target price.
Dr. Geordie Mark of Haywood said, "We believe that now is the right time for leverage in precious metals through investment in Dolly Varden Silver due to the collective asset position now held on the Kitsault Valley Project area, and the upside potential being germinated through the 2022 exploration program via drilling and maturation of system genesis insight for future targeting."
Ownership and Share Structure
According to Reuters, major mining corp. Fury Gold Mines Ltd. (FURY-T) is the largest shareholder owning 25.80%, with 59.50 million shares. Other top shareholders include 2176423 Ontario, Ltd. which owns 11.11% at 25.63 million shares, Hecla Mining Co. (HL:NYSE) which has 10.71% with 24.71 million shares, and Sprott Asset Management LP. which has 5.15% at 11.87 million shares.
Dolly Varden Silver has a market cap of CA$193.71 million and 230.61 million shares outstanding of which 119.42 million are free floating. It trades in the 52-week range between CA$0.40 and CA$0.88.
The company opened today at CA$0.79 with a day range of CA$0.79 to CA$0.83, and is currently trading at CA$0.83.
