Explorer Extends Premium Silver Zone at Golden Triangle Project

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Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) announced infill, step-out, and resource expansion assay results from drilling at the Wolf Vein of its Kitsault Valley project in British Columbia's Golden Triangle.

Among the results, hole DV24-421, a significant step-out down the plunge of a high-grade silver zone, intersected 379 grams per tonne silver (g/t Ag), 0.64% lead (Pb), and 0.66% zinc (Zn) over 21.69 meters, the company said.

"Following our recently released, high-grade results from the Homestake Silver Deposit, these step-out drilling results from the Wolf Vein demonstrate the exceptional growth potential from the multiple deposits and exploration prospects that comprise the Kitsault Valley Project," said Chief Executive Officer Shawn Khunkhun. "At Wolf, we continue to expand the extent of strong mineralization, veining, and alteration as we get closer to the Torbrit Silver deposit, located 1,000 meters to the south."

The hole is the southernmost completed to date. The results up until DV24-421 have "delivered consistent wide, potentially underground bulk-mineable intervals," the company said in a release.

Highlights of the assays released on Tuesday include:

• DV24-421 (120m step-out): 379 g/t Ag, 0.64% Pb, and 0.66% Zn over 21.69 meters, including 1,804 g/t Ag, 4.36% Pb, and 3.10% Zn over 1.67 meters.
• DV24-406 (infill): 465 g/t Ag, 0.49% Pb, and 0.22% Zn over 7.67 meters, including 1,416 g/t Ag, 1.56% Pb, and 0.51% Zn with 0.24 g/t gold (Au) over 1 meter.
• DV24-413 (lower extension): 374 g/t Ag, 0.54% Pb, and 0.82% Zn over 9.70 meters, including 975 g/t Ag, 0.36% Pb, and 2.28% Zn over 2.3 meters. Individual Pb/Zn veins in the footwall to the main Wolf Vein graded 130 g/t Ag, 2.48% Pb, and 14.65% Zn over 2.07 meters.
• DV24-415 (upper extension): 357 g/t Ag, 0.52% Pb, and 0.41% Zn over 9.17 meters, including 2,034 g/t Ag, 3.47% Pb, and 0.18% Zn over 1.15 meters.

Other recently reported step-out results from 2024 include the previously released holes DV24-416, which intersected and 654 g/t Ag, 0.47% Pb, and 0.57% Zn over 21.48 meters; and DV24-408, which intersected 513 g/t Ag, 2.95% Pb, and 1.82% Zn over 27.19 meters.

'Add Shares on Dips'

According to the company, its 2024 drilling has expanded the silver mineralization's plunge at the Wolf Vein to more than 1,100 meters. The company said it plans further expansion drilling this year.

Both (Gold Advisor Editor) Jeff Clark and I hold a long position. As he's said, he considers Dolly Varden a core silver holding for the bull market. Add shares on dips."

Both (Gold Advisor Editor) Jeff Clark and I hold a long position. As he's said, he considers Dolly Varden a core silver holding for the bull market. Add shares on dips."

"Dolly Varden plans to prioritize further resource expansion in 2025, supported by its fully funded exploration program," Senior Analyst Jeff Valks wrote for The Gold Advisor on Tuesday. "The company aims to advance drilling at the Wolf Vein, test extensions at North Star, and follow up on high-grade findings at Red Point and other prospects."

The company's drilling results continue to "reinforce the area's potential for significant silver and base metal mineralization," Valks continued. "Dolly Varden's strategic efforts to expand mineralization and enhance geological modeling position the project for robust growth in the coming years."

Valks said the stock did not move much when the news was released, "But make no mistake: the Wolf Vein is growing and adding significant ounces for a future resource. Both (Gold Advisor Editor) Jeff Clark and I hold a long position. As he's said, he considers Dolly Varden a core silver holding for the bull market. Add shares on dips."

'Increasingly Attractive Target' for Majors

Tuesday's release includes the final 13 of 22 drill holes (9,731 meters) completed at the Wolf Vein in 2024, as well as the final 17 of the total 19 drill holes (5,815 meters) from several other prospects on the Dolly Varden portion of the Kitsault Valley project.

In total, Dolly Varden's 2024 program drilled 69 holes for more than 30,000 meters — 41 holes totaling more than 15,000 meters at the Dolly Varden area and 28 holes totaling more than 16,000 meters at Homestake Ridge.

Analyst Marcus Giannini of Haywood Capital Markets noted in a recent research note that Dolly Varden continues to "push the margins of known high-grade mineralization" at the project.

Gianini gave the stock a Buy rating with a CA$2.40 per share target price. "We continue to view Dolly's high-grade endowment as an increasingly attractive target for larger North American-focused precious metal producers," he noted.

The Catalyst: Industrial Role Bolstering Demand

As the most conductive metal known in nature, silver’s role as an industrial metal is bolstering demand, particularly as solar panel production ramps up globally, FX Empire's James Hyerczyk noted on Tuesday.

"The transition to renewable energy is driving silver's use in photovoltaic cells, reinforcing price support alongside its traditional status as a precious metal," he wrote. "Additionally, manufacturing activity and electronics sectors are contributing to silver's bullish outlook. As industrial demand strengthens, silver's price is expected to track higher alongside gold, benefiting from dual demand streams."

Silver prices edged higher Tuesday following a successful defense of the 200-day moving average at US$29.87, Hyerczyk wrote. The spot price was about US$30 per ounce at the time of writing.

"A sustained move above the 200-day moving average signals the presence of buyers, with US$30.54 emerging as the next upside target," he wrote. "Overcoming this pivot would open the path toward the 50-day moving average at US$30.86. Sellers are expected to step in at this level on the first test, but a clear break could drive prices higher, with US$32.33 as the next major resistance."

Mordor Intelligence noted that the white metal is expected to register a compound annual growth rate (CAGR) of more than 5% between 2024 and 2029.

Ownership and Share Structure

According to the company's latest corporate presentation in November 2024, 52% of its stock is held by institutional investors, including Fidelity Management & Research Company LLC, Sprott Asset Management LP, U.S. Global Investors Inc., and Delbrook. 

About 37% is with strategic investors, including 15% with Fury Gold Mines, 12% with Hecla, and Eric Sprott owns 10% himself. 

The rest, 11%, is with retail and high-net-worth investors.

The company has 317 million outstanding shares. Its market cap is CA$290.17 million, and its 52-week trading range is CA$0.62–1.46 per share.