In the recent article "Opportunities in Silver Explorers and Developers – Part 2," Shad Marquitz of Excelsior Prosperity offers an insightful analysis of Dolly Varden Silver (Ticker: DV.v or DOLLF for US investors).
Marquitz cites two primary factors that initially attracted him to the company in 2015: the strategic location in British Columbia's prolific Golden Triangle and the proximity to Hecla Mining's (NYSE: HL) Kinskuch Project. This geographical advantage, combined with Hecla ongoing interest in Dolly Varden, presents a compelling case for the company's potential.
Marquitz recounts the events of 2016 when Hecla attempted to acquire DV. Despite Hecla's aggressive tactics, including a restrictive loan and an unsolicited takeover bid, DV's management successfully thwarted these efforts through strategic financing moves and legal victories. This episode not only demonstrated the company's resilience but also underscored its value as a strategic asset in the region.
The leadership changes at Dolly Varden have also played a crucial role in its development, with the 2020 appointment of Shawn Khunkhun as President, CEO, and Director marking a significant turning point. Khunkhun's effective communication, strategic acquisitions, and focus on expanding the company's resource base have been pivotal in raising Dolly Varden's profile in the market.
Marquitz highlights the company's substantial exploration achievements, particularly in the Torbrit and Wolf deposits, and the strategic acquisition of the Homestake Ridge project from Fury Gold. These moves have not only expanded DV's resource base but also positioned it as a more attractive target for acquisition, potentially by Hecla.
Historically the Dolly Varden Project has produced around 20 million ounces of silver, with an additional 18 million ounces in the 1950s. Today, DV's resources amount to 137,711,400 ounces of silver equivalent in all categories, or 1,836,152 ounces of gold equivalent.
DV's 2024 exploration program aims to build on these successes with a robust 25,000-meter drilling plan focused on resource expansion and new discoveries. The exploration team plans to split the effort between the Dolly Varden and Homestake Ridge properties, with a balanced approach targeting high-grade intercepts and potential new discovery zones. The company's previous year's 51,527-meter drill program yielded promising results that are yet to be fully reflected in updated resource estimates.
Financially, Dolly Varden remains strong, with strategic shareholders like Fury Gold, Hecla Mining, Eric Sprott, and significant institutional investments from firms such as Fidelity,US Global Investors, and Delbrook Capital, collectively holding a substantial stake in the company. This robust financial backing further solidifies Dolly Varden's position in the market and its potential for future growth.
Shawn Khunkhun's strategic vision and the company's consistent exploration success suggest a bright future for DV. As the company continues to advance its projects and expand its resource base, it stands out as a significant player in the silver exploration and development sector, poised for potential acquisition and long-term success.
Full article here: https://excelsiorprosperity.substack.com/p/opportunities-in-silver-explorers-8d7
Posted on behalf of Dolly Varden Silver Corp.