Resource Developer Discovers 95.99m Mineralized Zone in Golden Triangle

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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 results from successful infill drilling that expanded the high-grade gold and silver mineralized trend at the Homestake Silver deposit, as stated in a February 4 release.

In the 2025 program, a total of 29 drill holes were completed at Homestake Silver and two at Homestake Main, with five results previously released, the company reported.

"The 2025 drill program at the Homestake Silver Deposit successfully expanded and infilled the Mineral Resource area, demonstrating strong gold and silver grades over potentially underground bulk-mineable widths," President and Chief Executive Officer Shawn Khunkhun said. "The deposit remains open for expansion, and we look forward to accelerating drilling and engineering studies to advance the Homestake Main and Homestake Silver Deposits during 2026."

Highlights from the silver-rich southern portion of the deposit include:

• HR25-466: Infill drilling in the silver-rich southern zone intersected a broad mineralized zone averaging 4.66 grams per tonne gold (g/t Au) and 33 g/t silver (Ag) over 48.49 meters, with narrower high-grade veins and vein breccias yielding 52.15 g/t Au and 306 g/t Ag over 1.01 meters and 46.55 g/t Au and 298 g/t Ag over 1.87 meters.
• HR25-470: Located on the same section as HR25-466, with an 87-meter down dip step-out, intersected 5.25 g/t Au and 31 g/t Ag over 38.74 meters, including 123.5 g/t Au and 760 g/t Ag over 0.86 meters and 25 g/t Au and 73 g/t Ag over 0.75 meters.
• HR25-473: Infill drilling in the silver-rich southern zone intersected 1.08 g/t Au and 58 g/t Ag over 95.99 meters, including 4.99 g/t Au and 989 g/t Ag over 0.95 meters, 23.3 g/t Au and 598 g/t Ag over 0.52 meters, and 18.25 g/t Au and 233 g/t Ag over 0.50 meters.

Focus On 3 Main Areas

The 2025 drilling program at Homestake Ridge concentrated on three primary areas, mainly targeting Homestake Silver, Dolly Varden stated in the release. First, infill drilling was conducted within the southern silver-rich zone, with results highlighted previously. Second, infill and down-dip drilling occurred in the central portion of the zone. Third, expansion drilling was performed at the northern end and included down-dip tests below the known extent of mineralization.

In the central zone of Homestake Silver, infill and down-dip extension drill holes were primarily along the lower boundary of the projection of the northerly plunging, high-grade trend. Gold assay results from these mineralized intercepts indicate a downdip expansion of the zone for approximately 100 meters over a 350-meter strike length in this central area.

Step-out drilling at the northern end of the mineralized trend and below the deposit successfully expanded the extent of mineralization. Drill holes HR25-458 and HR25-460 stepped out to the northwest from previously released drill hole HR25-456, which graded 3.34 g/t Au over 120 meters, including 216 g/t Au over 0.52 meters and 166 g/t Au over 1.3 meters. The 2025 drilling also expanded the down-dip potential below the deposit, intersecting mineralization consisting of high-grade vein and vein breccias within an approximately 10-meter wide stockwork and alteration zone, highlighted by drill holes HR25-454 and HR25-483.

During the 2025 season, Dolly Varden Silver drilled a total of 56,131 meters in 86 drill holes at the Kitsault Valley Project, with approximately 40% of the meters drilled at Homestake Ridge focused on step-outs and local infill at Homestake Silver. The company stated it employed directional drilling technology to accurately target areas for step-out and infill holes at Homestake Silver. Some single holes used directional drilling to precisely intercept the target within the mineralized zone, while other areas utilized multiple holes based off a central mother hole.

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 noted. Mineralization consists of pyrite, +/- 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 considered a silver-rich gold deposit, recent drilling at Homestake Silver has defined a shallow north-plunging zone characterized by wide mineralized intervals with an increased frequency of high-grade gold veins and vein breccias, indicating a shift towards a gold-rich system towards the north, the company said. The deposit remains open along the plunge and at depth.

Results 'Wide, Weighty, and Hard to Ignore'

Jeff Valks, senior analyst for The Gold Advisor, described the results as "wide, weighty, and hard to ignore" in a February 4 update.

The latest findings are impressive, resembling a complex, layered composition rather than a single standout hit, Valks noted. The company's 2025 program successfully infilled and expanded a northerly plunging, high-grade gold and silver trend, delivering broad mineralized intervals interspersed with sharp, high-grade veins. A total of 29 holes were completed at Homestake Silver and two at Homestake Main, continuing a steady stream of results released through late 2025.

He highlighted "the headline intercept" as 48.49 meters of 4.66 g/t gold, including 1.01 meters of 52.15 g/t gold and 306 g/t silver, and 1.87 meters of 46.55 g/t gold and 298 g/t silver.

"That’s width first, then grade—an approach that tends to hold our attention longer than flashy but fleeting spikey grams/tonne," Valks wrote.

The drilling extended beyond infill, with step-out and down-dip holes expanding the mineralized footprint to the north and at depth, Valks said.

"The pattern is consistent: broad envelopes of mineralization with repeated high-grade veins stitched inside," he wrote.

These results are part of a broader context, Valks noted. As long-time investors know, Dolly Varden has consistently reported high-grade hits at Homestake, secured financings, and scaled up drilling across the Kitsault Valley Project. The latest intercepts confirm a system that remains open along plunge and at depth, while showing continuity across an expanding strike length.

"The combination of width, grade, and repeatability at Homestake Silver continues to strengthen the case that this is a deposit with real heft, not just highlight reels," Valks wrote. "And don’t forget about the upcoming merger with Cantango Ore. I hold a long position, (Gold Advisor Founder) Jeff Clark maintains his full-weighting."

In a precious metals stocks earnings preview note on January 27, Haywood Capital Markets noted it had raised its short-term and long-term gold prices, increased its FX rate assumptions, and lowered its NAV multiple to 0.70x from 0.75x NAV.

"The net effect of these changes has led to our Target Price increasing to CA$14.00 from CA$11.25 per share," the firm said in the note. The stock remained a Buy.

The Catalyst: Will Silver Prices Reach New Highs?

Silver prices dropped significantly in another volatile session on Thursday, leading declines across the precious metals sector as renewed selling pressure wiped out a brief rebound earlier in the week, Ambar Warrick reported for Investing.com on February 4. Spot silver fell 14.7% to US$75.18 an ounce, remaining close to the lows reached during last week's downturn. Silver futures for March delivery decreased by more than 11.5% to US$74.68 per ounce.

Deeper losses in silver occurred earlier during the Asian session, accompanied by a slight increase in the dollar, Warrick noted.

"Even as prices of precious metals are now less elevated following the correction, sensitivity to [the U.S. dollar], yield repricing, and uncertainty around Fed policy under new leadership remains high. While positioning has likely reset to some extent, confidence may not have fully restored, pointing to a potential period of choppier, two-way trading," said Christopher Wong, FX strategist at OCBC, in an email comment reported by Warrick.

Wong viewed the recent pullback in precious metals more as a "normalization phase rather than a trend reversal," noting that the fundamentals driving the metal rally—central bank demand for gold and industrial demand for silver—remain intact.

"While higher beta and sentiment-driven flows can amplify short-term volatility, medium-term fundamentals remain supported by demand from solar [photovoltaic], grid modernization, and electrification themes, which should help cushion downside once positioning and sentiment stabilize," Wong added, according to the report.

"Silver may see short-term volatility as markets digest policy signals and economic data," noted Gandharv Walia for The Economic Times on February 1. "Some analysts view the move as a correction after a rapid rally to record highs. A bounce could occur if the dollar weakens or buying interest returns. However, further declines are possible if risk aversion stays high and interest rate expectations remain firm."

Ownership and Share Structure¹

Institutional investors own 52% of the company. Among them, Hecla Mining Co. (HL:NYSE) holds 13%, Fury Gold Mines Ltd. (FURY-T) owns 12%, and Eric Sprott holds 9%. The remainder is held by retail investors.

Dolly Varden has 90.92 million outstanding shares and its market cap is CA$584.59 million. Its 52-week range is CA$3.21–CA$8.09 per share.