Dolly Varden Silver (Ticker: DV.v or DOLLF for US investors) has made a significant stride in its 2024 exploration program by discovering high-grade silver mineralization at its Kitsault Valley project in British Columbia's Golden Triangle. As reported by Streetwise Reports late last week, the first drill results from this program have unveiled promising prospects that could propel the company's stock into a period of robust performance.
Impressive Drill Results
The initial drilling at the Moose and Chance veins yielded substantial silver grades. Specifically, hole DV23-387 at the Moose vein revealed an impressive 977 grams per tonne (g/t) of silver over 5 meters, including a remarkable 3,670 g/t over 0.79 meters. Similarly, hole DV24-388 at the Chance vein intersected 206 g/t of silver over 23.03 meters, with notable sections including 597 g/t over 1.4 meters and 749 g/t over 0.5 meters. These results underscore the high potential of the mineralized structures at Moose, which exhibit characteristics akin to the nearby Wolf deposit.
Analyst and Market Reactions
Analyst Stuart McDougall of Research Capital Corp. reaffirmed his Speculative Buy rating on Dolly Varden with a target price of CA$1.45 per share (current share price = $1.01). McDougall noted that the grades and widths of the initial drill results are comparable to those of known zones to the south, validating the company's strategy to expand existing resources.
Technical Analyst Clive Maund and Jeff Clark of The Gold Advisor also shared positive outlooks. Maund highlighted the formation of a countertrend Pennant pattern, indicating potential for significant upward movement, while Clark pointed out the expansive nature of the drilling area, which remains open for further resource discovery. Clark anticipates a breakout in silver prices, which could further benefit Dolly Varden's stock.
Strategic Exploration and Future Prospects
CEO Shawn Khunkhun also expressed optimism regarding these findings, suggesting the Moose Vein area could emerge as a significant silver deposit along the 5-kilometer trend that also includes the Dolly Varden, Torbit, and North Star deposits. He emphasized the robust nature of the mineralized structure and the encouraging results from the Chance vein, highlighting the potential for further discoveries.
Dolly Varden's exploration efforts are supported by three rigs currently drilling, with 25 holes either completed or in progress. The exploration program will be evenly divided between the Dolly Varden and Homestake Ridge properties, focusing on areas such as the Homestake Silver deposit, the Wolf deposit, and broader project-wide exploration for new targets. The introduction of directional drilling technology this season aims to enhance the precision of drill intercepts, potentially leading to more accurate and productive outcomes.
Market Position and Silver's Role in Green Energy
Dolly Varden Silver Corp. is strategically positioned to leverage rising silver prices and discovery-driven growth. The company benefits from a significant silver-equivalent resource base in the prolific Golden Triangle region. As the demand for silver continues to exceed supply, driven by its critical role in green energy technologies and electronic applications, Dolly Varden stands to gain considerably.
With 48% of its shares held by institutional investors and 44% by strategic investors, including notable names like Fidelity Management, Sprott Asset Management, and Hecla, Dolly Varden enjoys substantial support from influential stakeholders.
Full article here: https://www.streetwisereports.com/article/2024/06/21/co-finds-high-grade-silver-in-first-new-drill-results.html
Posted on behalf of Dolly Varden Silver Corp.