Mining Co. Plans Multi-Generational Silver Asset in Golden Triangle

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In a message to shareholders on February 14, Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) President and Chief Executive Officer Shawn Khunkhun began to lay out plans for the coming year — and a vision extending much further into the future.

"I want every resource investor to understand why Dolly Varden Silver has the potential to become a 'legacy asset' — a multi-generational mine like the Kennecott Copper Mine in Utah (operating since 1906) or the Macassa Mine in Ontario (operating since 1926)," Khunkhun wrote. "In an era of smaller, lower-grade discoveries that often lead to short-life mines, this may seem like fanciful thinking."

However, "There are three reasons that give me confidence in this objective [of a multi-generational mine]: size, history, and vision," he added.

The company earlier this month released the final results from its 2024 drill program at its Kitsault Valley silver and gold project in British Columbia's Golden Triangle, reporting that the last 20 drill holes reported "successfully expanded and infilled multiple high-grade gold- and silver-rich zones within the Homestake Silver Deposit."

The entire 2024 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," the company has said.

'Size, History, Vision'

In terms of size, Dolly Varden Silver's 100% held, 163-square-kilometer Kitsault Valley project is in the southern tip of British Columbia's Golden Triangle, which is just south of the high-grade Brucejack and Eskay Creek gold mines. According to Khunkhun, its land package is "48X bigger than New York City's Central Park."

As the company has pointed out on its website, a larger project can increase its economic viability and save on exploration, studies, permitting, development, and operation.

Haywood Capital Markets Analyst Marcus Giannini wrote, "We believe Kitsault Valley continues to offer ample avenues for resource augmentation, both in terms of regional exploration upside as well growth within the known deposits, paving the way for a catalyst-rich 2025, especially upon recommencement of drilling this summer."

"With only 10% of the property explored, we have established 50 million ounces (Moz) of silver equivalent (Ag Eq) in the indicated category and 90 Moz Ag Eq in the inferred category," the executive noted in his message.

The project's property boundaries also contain some significant history, with the short-lived Dolly Varden Mine of 1919-1921 being the richest mine in the British Empire before the price of silver fell. The mine closed for decades.

In the 1950s, another mine on the company's property, the Torbrit Mine, produced 18 Moz at 466 grams per tonne (g/t) Ag. "Both of these mines operated at a modest scale, with technology that is crude by today's standards," Khunkhun noted.

As for his vision for the company's future, he said it includes forming "strategic partnerships with groups that share our long-term objectives," like the Nisga'a Nation and major investor Hecla Mining.

"Fifty-two percent of DV stock is owned by institutional investors who know that aggressive wealth creation comes from big well-executed ideas, based on long-term trends," Khunkhun wrote. "Through aggressive drill programs and accretive acquisitions, our metal inventory has grown 300% in the last four years. We are at the beginning of a journey that I believe will reward our current and future stakeholders."

'Lots of News Ahead'

Analysts seem to agree with the CEO's vision for Kitsault Valley's future. In an updated research note on February 3, Haywood Capital Markets Analyst Marcus Giannini wrote, "We believe Kitsault Valley continues to offer ample avenues for resource augmentation, both in terms of regional exploration upside as well growth within the known deposits, paving the way for a catalyst-rich 2025, especially upon recommencement of drilling this summer."

"We continue to view Dolly's high-grade endowment as an increasingly attractive target for larger North American-focused precious metal producers," continued Giannini, who gave the stock a Buy rating with a CA$2.40 per share target price, a more than 133% bump from DV's share price at the time of writing.

Analyst Stuart McDougall of Research Capital Corp. wrote in an updated research note on February 3 that the results from 2024 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."

Jeff Valks, senior analyst for The Gold Advisor, noted on February 3 that the Homestake Ridge deposits, classified as epithermal vein stockwork and vein breccia systems, remain open for expansion.

"The company's 2025 drill program aims to further define high-grade extensions along strike and at depth," Valks wrote. "With a fully funded exploration plan for 2025, Dolly Varden is positioned to continue expanding its gold and silver resources within the Kitsault Valley trend. In other words, lots of news ahead."

The Catalyst: Silver in Focus

Silver prices gained slightly Wednesday as "bullish momentum builds, supported by safe-haven flows and expectations surrounding the Federal Reserve's next move," wrote James Hyerczyk for FX Empire on Wednesday. "With gold reaching a fresh all-time high, silver remains in focus, particularly as its industrial and monetary demand factors collide."

Recent records set by gold have "reinforced silver's bullish sentiment," he said. "Safe-haven demand is driving both metals, particularly after U.S. President Donald Trump's tariff threats rattled markets."

Gold and silver historically move in tandem during periods of heightened uncertainty, Hyerczyk wrote. If gold challenges the US$3,000 mark, "silver could continue to rise in its wake."

While tariffs could weigh on silver's industrial demand, its role as a monetary asset should keep it well-supported, especially if inflation fears persist. For now, silver bulls have the upper hand, but market reactions to the Fed will be key in determining the next big move, he wrote.

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$326.41 million, and its 52-week trading range is CA$0.68–1.46 per share.