Silver Explorer Continues to Find 'Surprising' Amount of High-Grade Gold

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Dolly Varden Silver Corp. (DV:TSX.V; DVS:NYSEA; DVQ:FSE) announced drilling results that extend the high-grade gold mineralized plunge within the Homestake Silver deposit, according to a December 4 release.

Drill hole HR25-475 is a step-out 42 meters to the north and located on the upper boundary of the shallowly northward-plunging, high-grade trend, the company said.

The intercept shows grades of 14.5 grams per tonne gold (g/t Au) and 75 g/t silver (Ag) over 21.18 meters, including 113 g/t Au and 997 g/t Ag over 0.68 meters, and 121 g/t Au and 279 g/t Ag over 0.63 meters. The high-grade mineralization in HR25-475 is part of a larger mineralized zone grading 7.01 g/t Au and 35 g/t Ag over 48.38 meters.

"The expansion of the wide, high-grade gold and silver mineralization in the Homestake Silver Deposit continues to demonstrate the continuity and robustness of the potentially bulk underground mineable zone," President and Chief Executive Officer Shawn Khunkhun said. "We will continue to release results from the 2025 program as they are received."

Drill hole HR25-475 was a 42-meter step-out to the north from HR24-448 along the plunge of the main gold and silver zone at the Homestake Silver deposit. The high-grade core of the Homestake Silver Deposit has been traced for over 300 meters vertically and extends for more than 1,000 meters along the plunge, the company said. The intercept is located at the upper boundary of the high-grade trend.

More Than 56,000 Meters Drilled

At Homestake Silver, Dolly Varden noted it drilled a total of 56,131 meters across 86 drill holes during the 2025 season. Approximately 40% of this drilling at Homestake Ridge was dedicated to step-outs and local infill along the broader, high-grade gold plunge at Homestake Silver.

The company said it is employing directional drilling technology to accurately target areas for step-out and infill holes at Homestake Silver. Drill hole HR25-475 was executed as a single hole using directional drilling to precisely hit the target within the mineralized zone.

The stock remains a Buy, with the standard advice to exercise discipline, Valks wrote.

The Homestake Ridge Deposits are interpreted as structurally controlled, multi-phase epithermal vein stockwork and vein breccia systems hosted in Jurassic Hazelton volcanic rocks, Dolly Varden said. The mineralization comprises pyrite, along with galena and sphalerite, with visible gold in a silica breccia matrix. The northwest-trending structural corridor hosts multiple subparallel structures that control high-grade gold and silver shoots within a broader mineralized envelope.

Although historically regarded as a silver-rich gold deposit, recent drilling at Homestake Silver has identified a shallow north-plunging dilation zone characterized by a wide mineralized interval with an increased frequency of high-grade gold veins and vein breccias, indicating a shift towards a gold-rich system to the north, according to the company. The deposit remains open along the plunge and at depth.

Analyst: Gold System Has 'Surprising Scale'

Jeff Valks, senior analyst for TheGoldAdvisor.com, noted in a December 4 update that the "gold-rich portion of the system continues to behave with surprising scale."

"HR25-475 strengthens the view that the high-grade gold and silver plunge is expanding to the north, with the 42-meter step-out landing at the upper edge of the modelled high-grade trend, consistent with the plunge direction outlined in previous releases," wrote Valks, who started the post with the exclamation "PAYDIRT!"

Valks continued, "Homestake was historically considered a silver-rich gold deposit, but it appears to shift toward gold-dominant mineralization in the north, where a shallow, north-plunging dilation zone has delivered thicker intervals sprinkled with these higher-grade gold veins and vein breccias. The high-grade core of the system has now been traced over more than 300 meters vertically and more than 1,000 meters along plunge. That sort of continuity matters, and so does the fact that the deposit remains open."

The stock remains a Buy, with the standard advice to exercise discipline, Valks wrote.

"These types of stories run in fits and spurts — so accumulate on the dips and then go put your feet on something comfy," he said. "I hold a long position (and) Jeff Clark holds full weighting."

Co. Continues to Expand High-Grade Gold Trend

In an updated note on December 4, Haywood Capital Markets Analyst Marcus Giannini maintained a Buy rating on the stock with a CA$11.25 target price, a 74% increase from the price at the time of writing.

"Today’s results reiterate the wide, high-grade nature of gold mineralization at Homestake Silver, as Dolly continues to successfully expand this high-grade gold trend," Giannini wrote. "Although historically considered a silver-rich gold deposit, recent drilling at Homestake Silver has defined a shallow north plunging dilation zone that is defined by a wide mineralized interval with increased frequency of high-grade gold veins and vein breccias which shows a shift towards a gold-rich system towards the north."

Giannini continued, "The deposit remains open along plunge and at depth, and we expect expansion of this gold-rich trend to be a focal point of future drilling programs."

The analyst also said the firm expects ongoing exploration-related updates from the company in the "coming weeks and months."

The Catalyst: New Gold Peak Predicted

According to commodity analysts at TD Securities, factors such as lower interest rates, ongoing currency devaluation, supply-side dynamics, and the need for diversification will bolster commodities and propel gold to a new peak above US$4,400 in the first half of the year, according to a report by Ernest Hoffman for Kitco Metals on December 4. While silver prices are expected to stabilize in the mid-US$40s, 2026 is anticipated to be the year when platinum and palladium take the lead. In their 2026 commodities outlook, TD Securities stated they do not foresee a downturn for gold next year but anticipate new record highs.

"The Fed-driven carry cost reductions, along with an expected yield curve steepening and potential concerns surrounding Fed independence, prompt us to say that the yellow metal will reach a new quarterly record of $4,400/oz in the first six months of 2026," they noted, according to Hoffman. "Looming concerns that the future Fed may not aggressively pursue a 2% inflation target, along with speculation the White House could aggressively lobby for lower rates at a time US debt is at record highs and growing, is a very important reason why we think the bullish gold trend will reassert itself."

The analysts highlighted that these elements would continue to drive U.S. dollar devaluation, de-dollarization, and de-globalization, which will, in turn, support robust central bank gold purchases.

"Meanwhile, the start of a broad movement away from classic 60-40 portfolio structure to an asset mix which includes as much as a 25% commodity weighting, along with lower rates, should see investors increase their appetite for the yellow metal," they explained.

TD Securities believes gold's new long-term range will be between US$3,500 and US$4,400 per ounce.

"For prices to stay below the lower end of that range, it would take a shift in investor attention back to rising U.S. risk asset prices, or a view change that the US job market will not weaken and no further Federal Reserve rate cuts are on the way," Hoffman said the analysts stated. "The absence of the US dollar debasement, de-dollarization, and monetization narratives could also do the trick. But we predict the employment environment will weaken, risk markets may have a difficult time rallying next year, and we expect the US central bank to cut an additional 100bps, with 150bps expected by some in the market, even as inflation stays stubbornly above the two percent target. The yellow metal should appreciate into 2026, given lower interest rates at a time inflation is materially above target, U.S. debt rising alarmingly fast, and growing fears that the world will have less need for US dollars and thus less capacity to purchase Treasuries given a high tariff environment."

Gold has made headlines this year, but according to S'thembile Cele and Jack Ryan writing for Bloomberg on December 3, silver is capturing a lot of attention. A supply squeeze has propelled the precious metal to a 100% increase as of early December, while gold has risen by 60%. Both metals are seeing a spike in demand from investors looking to protect against political instability, inflation, and currency depreciation.

Unlike gold, silver is not only rare and attractive but also possesses numerous practical properties that make it an essential element in various products. With inventories at near-record lows and investors continuing to clamor for more, there's a potential risk of supply shortages that could affect several industries, the authors noted.

"Silver is an excellent electrical conductor that's used in circuit boards and switches, electric vehicles and batteries," they wrote. "Silver paste is a critical ingredient in solar panels, and the metal is also used in coatings for medical devices. Sustained high prices could erode the profitability of industrial users and spur efforts to substitute silver components for other metals."

Ownership and Share Structure¹

Institutional investors own 52% of the company. Along with Hecla Mining Co. (HL:NYSE) with 13%, other strategic investors include Fury Gold Mines Ltd. (FURY-T) with 12% and Eric Sprott with 9%. The rest is in retail.

Dolly Varden has 90.88 million outstanding shares and 90.5 million fully diluted shares. Its market cap is CA$588.88 million. Its 52-week range is CA$3.21–CA$7.46 per share.