Results of the final eight holes Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) drilled in Homestake at its Kitsault Valley gold-silver project in British Columbia's Golden Triangle were notable for bonanza grades and reiterate the silver deposit's bulk potential, reported Research Capital Corp. Analyst Stuart McDougall in a Feb. 3 research note.
"We reiterate our Speculative Buy and target price of CA$1.45 per share, based on an assumed 25% increase in the existing resource base, using US$3 per ounce silver (Ag) and US$75 per ounce gold (Au), adjusted for options," McDougall wrote.
In comparison, Dolly Varden Silver is trading now at about CA$1.01 per share. From this price, the return to target is 43.6%.
Program at a Glance
McDougall presented the parameters of last year's drill program and discussed the results of its last eight holes. In 2024, the Canadian explorer covered 31,726 meters (31,726m) with 69 holes, half of which it drilled at the northern Homestake Ridge claims and the other half at the southern Dolly Varden claims. The campaign's objectives were twofold: to increase confidence in the known resource and to expand a gold mineralized zone to the northwest.
The latest and last 2024 drill results are from Homestake. This silver deposit accounts for one-quarter of Kitsault Valley's contained Au and about one-third of its contained silver Ag. These amounts are equal to 3,350,000 tons, averaging 3.13 grams per ton (3.13 g/t) Au and 146 g/t Ag.
Impressive Grades Shown
McDougall gave examples of the bonanza grades returned in this last batch of 2024 drill results. The highest grades were hit in hole HR24-331, drilled in an area of gold mineralization at Homestake that was discovered during the 2023 drill program. HR24-331 returned 47.92 g/t Au and 58 g/t Ag over 3.74m, including 91.1 g/t Au and 114 g/t Ag over 0.51m, all within a broader interval of 8.72m averaging 21.55 g/t Au and 27 g/t Ag.
These standout results were 180m downplunge of a previously reported, similar intercept encountered last year in hole HR23-410 of 10.17 g/t Au over 6.61m, including 50.7 g/t Au over 0.62m.
Another 2024 highlight result was from HR24-433, which showed the best grades of the other four holes targeting the northern extent of Homestake's enrichment zone. HR24-433 returned 35.05 g/t Au and 114 g/t Ag over 2.32m, in a broader interval averaging 3.48 g/t Au and 13 g/t Ag over 29.5m.
Enrichment Area Extended
McDougall explained that holes HR24-426 and HR24-449 confirmed the northern extent of the higher-grade gold mineralized zone discovered in 2023. Since then, this enriched area was shown to plunge to the north, toward the similarly oriented Homestake Main deposit that is 300m to the northwest.
These holes, HR24-426 and HR24-449, intersected anomalous gold over narrow widths, thereby indicating that the structural corridor remains intact.
High Grades in Infill Area
Two infill drill holes returned high grades, too, reported McDougall. HR24-437 showed 5.54 g/t Au and 97 g/t Ag over 10.2m. Hole HR24-438 demonstrated 4.48 g/t Au and 16 g/t Ag over 14.33m.
Dolly Varden Silver placed these two infill holes 32m south of its previously reported high-grade hole HR23-407, which showed 8.94 g/t Au and 191 g/t Ag over 10.72m.
More to Come
The gold-silver company intends to carry out another drill campaign at Kitsault Valley this year but has not released the details yet, noted McDougall. The program size is expected to be about the same as last year's given Dolly Varden Silver has sufficient cash for it.
Thus, investors should watch for additional project updates, any of which could catalyze the explorer's stock price.
| Want to be the first to know about interesting Gold and Silver investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
- Dolly Varden Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Dolly Varden Silver Corp.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
For additional disclosures, please click here.
Disclosures for Research Capital Corp., Dolly Varden Silver Corp., February 3, 2025
Analyst Certification I, Stuart McDougall, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report. Relevant Disclosures Applicable to Companies Under Coverage Relevant disclosures required under IIROC Rule 3400 applicable to companies under coverage discussed in this research report are available on our website at www.researchcapital.ca
General Disclosures The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation ("RCC") are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions. Company Specific Disclosures Within the past 12 months, Research Capital has provided investment banking services to the issuer. Distribution Policy Through www.researchcapital.com, our institutional and corporate clients can access our research as soon as it becomes available, 24-7. New reports are continually uploaded to the site as they become available throughout the day. Clients may also receive our research via Reuters, Bloomberg, FactSet, and Capital IQ. All of our research is made widely available at the same time to all Research Capital client groups entitled to our research. In addition, research reports are sent directly to our clients based on their delivery preference (mail, fax, e-mail).
Fair Dissemination of Research Reports and Ratings To the extent reasonably practicable, Research Reports will be disseminated contemporaneously to all of Research Capital Corporation ("RCC") customers who are entitled to receive the firm's research. Until such time, Research Analysts will not discuss the contents of their reports with Sales and Trading or Investment Banking employees. RCC equity research is posted to our proprietary website to ensure eligible clients receive coverage initiations and changes in rating, targets and opinions in a timely manner. Additional distribution may be done by the sales personnel via email, fax or regular mail. Please contact your investment advisor for more information regarding RCC research. Percentage Distribution of Research Ratings As required by the Investment Industry Regulatory Organization of Canada, Research Capital provides a summary of the percentage of its recommendations that fall into each category of our ratings. Please click this link Our Research - Research Capital Corporation to see our distribution of ratings.
Potential Conflicts of Interest All Research Capital Corporation ("RCC") Analysts are compensated based in part on the overall revenues of RCC, a portion of which are generated by investment banking activities. RCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. RCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned in our Research Reports as principal or agent. RCC makes every effort possible to avoid conflicts of interest, however readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies. RC USA INC. Information about Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is available on our website at www.researchcapital.com. The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Research Capital Corporation assume any responsibility or liability. Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. Contents of this report cannot be reproduced in whole or in part without the express permission of Research Capital Corporation. US Institutional Clients – Research Capital USA Inc., a wholly owned subsidiary of Research Capital Corporation, accepts responsibility for the contents of this report subject to the terms and limitations set out above. US firms or institutions receiving this report should effect transactions in securities discussed in the report through Research Capital USA Inc., a Broker – Dealer registered with the Financial Industry Regulatory Authority (FINRA). Member – Canadian Investor Protection Fund / membre – fonds canadien de protection des épargnants
