VANCOUVER, Jan. 4, 2018 /CNW/ - Dolly Varden Silver
Corporation (TSX.V: DV | U.S.: DOLLF) (the "Company" or " Dolly Varden ") On
behalf of the management of Dolly Varden Silver Corp. ("Dolly Varden"), it is my great pleasure to provide a summary to our
shareholders of the events of 2017 and provide an outlook of what may lie ahead in 2018.
The Belcarra Group assumed control of the management of Dolly Varden in December 2016 at the request of members of the board of directors and several of our large and institutional
shareholders. The objective was to bring stability to the corporation by allowing our experienced technical team led by
Ben Whiting, Vice President Exploration and Rob Van Egmond, Chief
Geologist as the project manager to begin to unlock value in the project.
We completed a thorough and comprehensive review of all historical data and workings, organized our exploration team and
designed the work program for 2017. We wanted to commence drilling as early as possible (weather permitting). Exploration camp
construction and site preparation began in May, diamond drilling quickly ensued in June, and we were the first company to begin
drilling in the Golden Triangle this season.
The initial program was designed for 5,000 meters of drilling with a budget of $3.5 million
("MM"). This was quickly expanded to $6.5 MM with the program running through to October. In total
we completed 15,728 metres of drilling totalling $4.8 MM with the cost per metre coming in well
under budget.
The team in Alice Arm had an incredibly successful drill campaign resulting in FOUR new
discoveries which have changed the outlook for the future of Dolly Varden in a very positive way.
These discoveries will be followed up with 2018 drilling which should start to delineate the size potential of these exciting new
targets. Ben Whiting, VP Exploration, is preparing a much more comprehensive news release which
will discuss these results in detail.
The project has a 2015 NI 43-101 compliant resource (Indicated, 3.07 million tonnes @ 322 g/t Ag for 31.8 million ounces
silver; Inferred, 0.90 million tonnes @ 373 g/t Ag for 10.8 million ounces silver). With the addition of the four new
discoveries, we can show that the potential is now there to add enough ounces to attract even the largest silver producers. The
Company has signed a number of confidentiality agreements as part of its preliminary discussions with several producers.
Financially, Dolly Varden is healthy with over $6.6 MM in the
treasury and no debt. During the year 2017, we completed two equity private placements including flow through shares raising over
$7.7 MM. At the end of September, the Company had a minimum of $2.1MM
of flow-through exploration budget still to be spent in 2018.
Our shareholder base remains very supportive with over 50% held institutionally and with a major mining company owning
12%.
One of Dolly Varden's key attributes is its great infrastructure and location, amongst the best
in BC's Golden Triangle. The camp is located in Alice Arm which is on tidewater, allowing all our
fuel and supplies to be brought in by barge and unloaded steps from camp. Power is nearby with the possibility of new
hydroelectric power being developed on site.
Community Relations is a major priority for Dolly Varden and as such we are in communication
with the Nisga'a Nation who have been very supportive of the project. The Kitsault region has a rich history of mining going back
to 1919. We would like nothing better than to see Dolly Varden regain its past glory with the
advent of another new mine(s).
In conclusion, the future of Dolly Varden looks very bright. In addition to bringing stability
to the Company, we have completed a large and successful exploration program which has seen us make four new discoveries,
illustrating the possibility of significant resource expansion. We look forward to 2018 as we continue to work diligently in our
efforts to unlock future shareholder value.
I would like to thank the shareholders for their support and wish everyone and their families healthy and Happy New Year and a
very prosperous 2018.
Thank you,
Gary Cope
President and CEO
Dolly Varden Silver Corporation
Technical Information and Qualified Persons
Ben Whiting, P.Geo., Vice President of Exploration serves as a 'Qualified Person' under
National Instrument 43-101, and has approved the scientific and technical information contained in this news release.
About Dolly Varden
Dolly Varden Silver Corporation is a mineral exploration company focused on exploration in northwestern British Columbia. Dolly Varden has two projects, the namesake Dolly Varden silver property and the nearby Big Bulk copper-gold property. Since December 2016, Dolly Varden has been under the direction of new management
provided by the experienced Belcarra Group Management Ltd. ("Belcarra Group"). The Belcarra Group is comprised of highly
qualified mining and financial professionals.
Additional information about the Company and its activities may be found on the Company's website www.dollyvardensilver.com and under the Company's profile at www.sedar.com.
The Company's common shares are listed and traded on the TSX.V under the symbol "DV" and on the OTCBB system under the symbol
"DOLLF".
FORWARD-LOOKING STATEMENTS:
This release may contain forward-looking statements. Forward-looking statements involve known and unknown risks,
uncertainties, and other factors which may cause the actual results, performance, or achievements of Dolly Varden to be materially different from any future results, performance, or achievements expressed or
implied by the forward-looking statements. Forward looking statements or information relates to the potential to grow the
project, the potential to expand the mineralization, the planning for further exploration work, the ability to de-risk the
potential exploration targets, and our belief about the unexplored portion of the property. These forward-looking statements are
based on management's current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned
not to place undue reliance on such forward-looking statements or information. The Company disclaims any obligation to update, or
to publicly announce, any such statements, events or developments except as required by law. Note: Mineral resources are
not mineral reserves, thus have not demonstrated economic viability.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this news release.
SOURCE Dolly Varden Silver Corp.
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