Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) released data from the final holes of the 2024 drill campaign at its Kitsault Valley project in British Columbia, reported Haywood Securities Analyst Marcus Giannini in a Feb. 3 research note.
"Notably, these latest results have successfully expanded and infilled multiple high-grade gold and silver-rich zones within the Homestake Silver deposit, where the company continues to delineate a high-grade gold trend," Giannini wrote.
138% Gain Implied
On the news, Haywood reiterated its CA$2.40 per share price target on the Canadian explorer, the analyst wrote. The investment firm considers Dolly Varden Silver's high-grade mineral endowment an "increasingly attractive target" for larger precious metals producers focused on North America.
The company's current share price is about CA$1.01. From this price, the return to target is 138%.
Dolly Varden Silver remains a Buy.
New Emerging Gold-Rich Zone
Giannini highlighted the standout stepout and infill drill results in this final set from Homestake Silver. As for stepout holes, HR24-431 intersected 21.55 grams per ton gold (21.55 g/t Au) and 27 g/t silver (Ag) over 8.72 meters (8.72m). This contained a higher-grade portion of 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.
HR24-431, which stepped out to the north, was one of five holes testing Homestake Silver's northern extension. To achieve this, Dolly Varden Silver targeted the area 180m downplunge from hole HR23-410, previously reported to have hit 10.17 g/t Au over 6.61m.
Another standout hole, HR24-433, stepped out to the east of the main Homestake Silver trend. It encountered 3.48 g/t Au and 13 g/t Ag over 29.5m, including a higher-grade subinterval of 35.05 g/t Au and 114 g/t Ag over 2.32m.
"While lower grade, this interval demonstrated impressive continuity and represents a new gold-rich zone," Giannini commented. "Looking ahead, we expect the company to continue to expand on this emerging gold trend, particularly in areas extending toward the Homestake Main deposit, which remains open."
Results of recently reported infill drill holes reiterated continuity of existing mineralization. Two examples were HR24-437 and HR24-438. The former intersected 5.54 g/t Au and 97 g/t Ag over 10.2m. The latter showed 4.48 g/t Au and 16 g/t Ag over 14.33m.
Overall, Giannini wrote that drilling at Homestake Silver keeps returning significant gold mineralization over meaningful widths. This bodes well for additional upside going into the 2025 drilling season and for a potential bulk-tonnage operation.
More Drilling This Year
Dolly Varden Silver is in the midst of planning its 2025 drill program at Kitsault Valley, reported Giannini, to continue testing regional exploration targets and fill in drill spacing gaps. The overall objective is to expand the project resource sufficiently to support an updated mineral resource estimate that could be released in late 2025-early 2026.
However, with so many opportunities for resource growth, both within the known deposits and through regional exploration, Dolly Varden Silver could justifiably push back release of the updated mineral resource estimate, purported Giannini. Whether the company does this or not, 2025 is sure to be catalyst rich.
Dolly Varden Silver is well-capitalized to carry out its exploration program this year, and Haywood expects it to be more robust than 2024's, which consisted of 69 holes over 31,726m.
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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.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- 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.
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Disclosures for Haywood Capital Markets, Dolly Varden Silver Corp., February 3, 2025
This research report is only for informational purposes. Nothing contained in this report is, or should be, relied upon as a promise or representation as to the future performance. The opinions and information in this communication constitutes the current judgment of the authors as of the date and time of this report and are subject to change without notice. There is no representation, warranty or other assurance that any projections contained in this report will be realized. Past performance is not indicative of future results. This report is not intended to provide personal investment advice. Investors are encouraged to seek advice regarding the advisability or suitability of any investments or strategies discussed in this report. Individuals involved in the production of research materials operate independently and without influence from any other Haywood Securities Inc. departments, including Haywood Securities Inc. affiliates. This report is not and is not to be construed as: (i) an offer to sell or solicitation of an offer to buy securities; (ii) an offer to transact business in any jurisdiction; or (iii) investment advice to any party. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in our research is suitable for their particular circumstances and, if appropriate, seek professional advice, including tax advice. Products and services described herein are only available where they can be lawfully provided. All research reports are disseminated and available to all clients simultaneously. No part of this material or any research report may be (i) copied, photocopied or duplicated in any form by any means or (ii) redistributed without the prior written consent of Haywood Securities Inc. Analyst Certification I, Marcus Giannini, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations. Important Disclosures Of the companies included in the report the following Important Disclosures apply: Haywood Securities, Inc. has reviewed lead projects Dolly Varden Silver Corp. (DV-V) and a portion of the expenses for this travel may have been reimbursed by the issuer. Haywood Securities, Inc. or an Affiliate has managed or co-managed or participated as selling group in a public offering of securities for Dolly Varden Silver Corp. (DV-V) in the last 12 months.
