Dolly Varden Silver (TSXV:DV) - Drilling to Grow Resources & Make New Discoveries

Interview with Robert van Egmond, VP Exploration of Dolly Varden Silver Corp.

Recording date: 6th June 2024

Dolly Varden Silver (TSXV:DV) offers investors a compelling opportunity to gain exposure to a high-grade silver project in one of the world's premier mining jurisdictions. The company's 100%-owned Kitsault Valley project, located in northwestern British Columbia's prolific Golden Triangle region, hosts several silver-rich deposits with significant exploration upside.

One of the key advantages of Dolly Varden is the high-grade nature of its silver deposits, with over 95% of the metal value coming from silver. This sets the company apart from many other silver producers that derive a significant portion of their revenue from base metals or gold byproducts. For investors seeking a pure-play silver investment, Dolly Varden is an attractive option.

The company is focused on advancing and de-risking its existing resources while continuing to explore the highly prospective Kitsault Valley project for new discoveries. Recent drilling has identified wider zones of silver mineralization within structural corridors, potentially amenable to bulk underground mining methods. This could enhance the economics of the deposits.

Furthermore, new high-grade gold-silver discoveries on the northern portion of the property, with grades similar to the nearby Brucejack mine, highlight the exploration potential of the project.
Dolly Varden benefits from a strong institutional investor base, with major shareholders including Hecla Mining and Eric Sprott. This long-term support provides a solid foundation for the company to continue advancing its projects.

Additionally, the company's leverage to silver prices is significant, with the share price historically appreciating 20-30% for a 10% rise in silver prices. This leverage allows investors to amplify their returns in a rising silver market.

The company plans to complete 25,000 meters of drilling in 2024, with a focus on resource upgrades and new target testing. This fully-funded program is expected to generate steady news flow and potentially deliver key catalysts for the stock. An updated resource estimate, incorporating recent drilling, is planned for the near future and will form the basis for preliminary economic studies.

The macro outlook for silver is highly favorable, with the metal forecast to remain in deficit due to strong industrial demand growth, particularly from the solar sector. As the world transitions towards cleaner energy sources, demand for silver, a key component in photovoltaic cells, is expected to rise significantly. This, coupled with constrained supply growth and increasing investor interest, creates a bullish backdrop for silver prices.

In summary, Dolly Varden Silver presents a unique opportunity for investors to gain leveraged exposure to rising silver prices through a high-grade, pure-play silver asset in a top mining jurisdiction. With a major exploration program underway, strong institutional backing, and significant upside potential, the company is well-positioned to deliver value for shareholders as the silver market continues to strengthen.

View Dolly Varden Silver's company profile: https://www.cruxinvestor.com/companies/dolly-varden-silver

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