Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) expanded the drill program at its Kitsault Valley project in British Columbia to 55,000 meters (55,000m) from 45,000m and added a fifth rig, after initial drill results "deliver[ed] the promise of growth in high-grade silver mineralization," reported Haywood Securities analyst Geordie Mark in an Aug. 8 research note.
"We see the maiden results as proving the growth potential of the mineral endowment across the Kitsault family of gold-silver mineralized systems," Mark wrote.
178% return potential
Notable for investors, Mark highlighted, is the impressive potential gain, of 178%, that Dolly Varden offers, as implied in Haywood's CA$2 per share target price on it. The explorer-developer's current share price is about CA$0.72.
"Now is the right time for leverage in precious metals through investment in Dolly Varden Silver on 2023 results and the upside potential to be germinated in the 2023 program," commented Mark.
As such, Haywood maintained a Buy rating on the Canadian mining company and suggested investors accumulate shares of it now.
Initial data encouraging
The drill results from Kitsault Valley's Kitsol vein "are particularly encouraging," wrote Mark. They showed updip extensions of high-grade silver mineralization in the Kitsol vein, notably via hole DV23-336. It returned 18m of 342 grams per ton silver (342 g/t Ag) including 0.5m of 2,270 g/t Ag.
Two other Kitsol standout holes, returning high grades, were DV23-334 and DV23-337. The former showed 8.32m of 297 g/t Ag including 0.9m of 1,090 g/t Ag. The latter demonstrated 9.57m of 496 g/t Ag including 0.73m of 1,100 g/t Ag.
New drill results also indicated further downdip extensions of silver mineralization in an offset across the Moose Lamb fault.
"Building on the successful exploration of Wolf since 2021, we see Moose as the next analogue in that exploration success," wrote Mark. "It is a site of former workings and is outlined to exhibit geological similarities to the silver-gold mineralization at Wolf."
Additional silver mineralization of high grade was also encountered in the Torbrit Main deposit. There, hole DV23-348 returned 3.5m of 334 g/t Ag including 1.34m of 672 g/t Ag.
More to come
In addition to its original plan for the 2023 Kitsault Valley drill campaign, Dolly Varden aims to identify additional shallow, high-grade silver targets. It intends to follow up on the Moose Lamb fault finding as well.
"We are interested in what we see as the lower risk facets of the exploration drilling program to return high-grade gold and silver intersections expanding known mineralization across the project area (e.g.,) Wolf, Homestake Main and Homestake Silver," Mark wrote.
He added that results from any of these areas constitute potential stock catalysts on the horizon for Dolly Varden.
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