Min Spec update The company announced that crews have been mobilized and are working on-site to prepare for the 2013 surface drill program at the Dolly Varden property, located 26 kilometers by road from the tidewater at the village of Alice Arm, B.C. The drill program is expected to commence near the end of June and operate through the months of July and August.
The company stated the drill program is adequately financed and they continue to have Hecla Mining as their strategic partner, who controls almost 20% of the outstanding shares.
In the press release the company stated the following in italics:
The goal of the company's drill program is: to start to confirm historic resources, which total 14.5 million ounces silver at approximately 10 ounces per ton; find new silver resources at the existing deposits; and identify an extensive silver and gold-rich target, located just northwest of the Torbrit deposit which is thought to be associated with the Red Point zone, which is geologically analogous to Eskay Creek.
The 2013 program will begin to systematically drill to follow the horizon from Torbrit toward Red Point. Torbrit is the launching pad for the step-out drill program that will march toward the source/feeder system believed to be at Red Point. Mineralization is expected to be continuous but variable along the Torbrit horizon toward Red Point. Grades, widths and other structural information can now only be determined by drilling.
It has taken us awhile to get to this point, but from an exploration standpoint this is a very exciting time for the company. Based on the history of this area, and the recent work done by the company over the past two years, the story is at a critical juncture for a potential breakthrough on multiple fronts.
First and foremost is the potential to outline a much bigger silver resource than the 15 million ounces in the historic numbers. The company believes the existing mineralized zones could be expanded towards 40 to 50 million ounces of silver, which is a significant milestone.
Based on my site visit to the project and looking at some of the underground workings, I would say our chances are very good that the company can achieve this goal.
Second and even more important in my mind is the potential for an Eskay Creek (high grade gold and silver) type of discovery. I have talked about the importance of this when I first recommended the company and what it could do to our share price if such a discovery could be made.
Dolly Varden is now poised to give shareholders a real chance at some major blue sky potential with their current drill program. They have done the boots on the ground work along with using the best available technologies for pinpointing the best places to put drill holes within the known mineralized systems.
The company has done the necessary preparation work to have success and now they need the drills to confirm what we hope could be the next new big discovery in Canada. Based on everything we know about this particular area, the DV summer drill program certainly holds plenty of promise.
In the exploration business, an economic high grade discovery of gold and or silver in a good jurisdiction like B.C. is what we need to get our portfolios going again. In the mining business, grade is king, and Dolly Varden is definitely looking in the right place to make such a discovery.
I realize with our terrible market that it may be pretty difficult to get excited about anything in the exploration field at the moment, but I've seen this before when few investors are paying attention and suddenly a big discovery is made. Could Dolly Varden be such a company?
In my view, Dolly Varden is in play despite what may be going on in the market.
Based on the low share price, I see this as a real opportunity within a short period of time as results come in over the next several months and into the fall.
And for those of us who are suffering with anemic portfolios, there is nothing better to fix what ails us then to be a shareholder of a company when a big new high grade discovery is made. It is why we play these markets.
For these reasons, I am recommending Dolly Varden as a BUY.