Mining Company Reports Exceptional Gold-Silver Results

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Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) has released the final results from its 2024 drill program at its Kitsault Valley silver and gold project in British Columbia's Golden Triangle.

The company said the 20 drill holes reported in the release have "successfully expanded and infilled multiple high-grade gold- and silver-rich zones within the Homestake Silver Deposit."

The entire program consisted of 69 drill holes totaling more than 31,000 meters – 41 holes totaling 15,546 meters at the Dolly Varden area and 28 holes for 16,181 at the Homestake Ridge area. Planning for drilling this year is underway and will "build on the expanded silver and gold zones drilled in 2024."

Analyst Stuart McDougall of Research Capital Corp. wrote in an updated research note on February 3 that the results showcase "more gold enrichment.

"The latest holes came from the Homestake Silver deposit and focused on increasing confidence levels in the known resource and expanding a zone of gold-enrichment to the

northwest," said the analyst, who maintained his Speculative Buy rating on the stock with a CA$1.45 per share price target.

"The 2025 drill program has yet to be released but is expected to be of similar size, given the company's strong cash position," McDougall wrote.

Dolly Varden Chief Executive Officer Shawn Khunkhun also noted the gold mineralization results.

Analyst Stuart McDougall of Research Capital Corp. wrote in an updated research note on February 3 that the results showcase "more gold enrichment.

"Homestake Silver was originally considered a primary silver-rich deposit, however, our drilling has continued to identify multiple gold-rich zones and remains wide open for expansion," Khunkhun said. "Fully funded drilling in 2025 will target continued growth and further infill-drilling as a high-priority amongst the many targets in the Kitsault Valley trend."

According to McDougall, "The highest reported grades from the latest batch came from hole HR24-331, which targeted a gold-rich area discovered during the 2023 program."

The hole returned 3.74 meters grading 47.92 grams per tonne gold (g/t Au) and 58 g/t silver (Ag), including 0.51 meters at 91.1 g/t Au and 114 g/t Ag, within a broader interval that averaged 21.55 g/t Au and 27 g/t Ag over 8.72 meters.

Highlights of Results

Some of the highlights of the Homestake Silver Deposit results released this week include:

• Hole HR24-431 (step out to north): 21.55 g/t Au and 27 g/t silver Ag over 8.72 meters, including 47.92 g/t Au and 58 g/t Ag over 3.74 meters and including 91.1 g/t Au and 114 g/t Ag over 0.51 meters
• Hole HR24-433 (step out on new eastern lens): 35.05 g/t Au and 114 g/t Ag over 2.32 meters, including 74.7 g/t Au and 297 g/t Ag over 0.72 meters within 29.50 meters of 3.48 g/t Au and 13 g/t Ag
• Hole HR24-437 (south end infill): 5.54 g/t Au and 97 g/t Ag over 10.20 meters, including 21.34 g/t Au and 384 g/t Ag over 2.40 meters, including 42.10 g/t Au and 1,135 g/t Ag over 0.77 meters
• Hole HR24-438 (south end infill): 4.48 g/t Au and 16 g/t Ag over 14.33 meters, including 29.17 g/t Au and 59 g/t Ag over 1.62 meters
• Hole HR24-439 (step out 170 meters down dip): 1.56 g/t Au and 5 g/t Ag over 28.9 meters, including 9.55 g/t Au and 32 g/t Ag over 0.50 meters and 12.15 g/t Au and 14 g/t Ag over 1.00 meter
• Hole HR24-448 (infill hole): 91.20 meters grading 1.88 g/t Au and 3 g/t Ag, including 13.90 g/t Au and 6 g/t Ag over 0.74 m, 21.70 g/t Au and 5 g/t Ag over 0.57 meters and 36.10 g/t Au and 12 g/t Ag over 1.00 meter as well as silver dominant intercepts including 1.10 g/t Au and 786 g/t Ag over 0.91 meters and 0.31g/t Au and 571 g/t Ag over 0.82 meters

McDougall noted that the Homestake deposit "is one of three located on the northern section of the project, with four others sitting in the southern, Dolly Varden block."

"On a combined basis, it accounts for one-quarter of the project's contained gold and just over one-third of its contained silver, or 3.35 Mt (million tons) averaging 3.13 g/t Au and 146 g/t Ag," the analyst said. "The potential higher-grading section was confirmed during the 2023 campaign and has since shown itself to plunge to the north, towards the similarly oriented Homestake Main deposit, located 300 meters to the northwest.

New results "targeted that gap and intersected anomalous gold over narrow widths, suggesting the structural corridor remains intact," he wrote.

'Lots of News Ahead'

Jeff Valks, senior analyst for The Gold Advisor, wrote on Tuesday that with the planned drilling this year, Dolly Varden has "lots of news ahead." He said both he and Editor Jeff Clark hold long positions in "what we consider a core silver holding for the bull market."

"The current share price is still under its 50-day moving average and hasn't been consistently north of that since last fall," Valks wrote of DV. "That being said, the lower price amidst great news is never a bad thing for those looking to take or bolster their position."

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: Opportunities for Buying on Dips

Christopher Lewis of FX Empire noted on Tuesday that the white metal was "trying to get to the upside at this point in time but also faces a significant amount of resistance above."

"It's also worth noting that silver has the reputation of being extraordinarily noisy, and I do think that plays out here," Lewis wrote. "I just don't see a situation where silver has an easy path higher. This is not to say that it won't go higher. Quite frankly, I think it eventually does, mainly because gold is going to continue to grind to the upside as it will drag silver right along with it."

Lewis said industrial demand is certainly a major factor, as silver is nature's most conductive metal and vital to solar panel production, "so that might be part of why silver is a laggard."

"Buying on the dips more likely than not will end up being buying opportunities for longer term traders as well as short term scalpers," he wrote. "The 50-day EMA sits right around the US$30.65 level, with the US$31 level also offering support."

Mordor Intelligence noted that silver 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 January 2025, 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$311.41 million, and its 52-week trading range is CA$0.66–1.46 per share.