Dolly Varden Silver rises like a Wolf howl

[Ben Graham]

Dolly Varden Silver (TSXV: DV) reported new drilling at its Kitsault Valley project in British Columbia has tightened the Wolf vein’s high-grade plunge and kept the target open to depth, sending its Toronto-listed shares higher.

The latest hole, DV25-446, cut 21.7 metres grading 1,422 grams silver per tonne starting at 816.3 metres downhole, including a 1-metre hit of 10,700 grams silver, the company said Tuesday. The intercept sits about 105 metres up-dip of last season’s furthest step-out and came with increasing gold and base metals at depth. (Intervals are core length; estimated true widths are 55%–65%.)

Haywood Capital Markets mining analyst Marcus Giannini said the company was edging closer to a potential mineralizing system at depth.

“As is typical of metal distribution at the project, there was an augmentation of gold and base metal grades at depth, as proximity to the central valley structure increases,” Giannini said in a note. “Overall, we see ample room for further expansion of the high-grade mineralization at the Wolf vein, which will remain a priority during this season’s program.”

Dolly Varden’s hit lands in a silver market that just punched back above $40 per oz. amid a multi-year structural deficit driven by solar and electrification demand. It all  sharpens investor focus on high-grade ounces in the province’s northwest, the so-called Golden Triangle near Stewart.

Wolf vein

“These high-grade silver results over wide intervals suggest excellent continuity at the Wolf vein,” CEO Shawn Khunkhun said in a news release. “Additional drilling at Wolf is being prioritized for the remainder of the season.”

Dolly Varden shares gained 5.2% to C$5.45 apiece by Tuesday afternoon in Toronto. The company has a market capitalization of C$442 million ($320 million).

Around the Golden Triangle camp, Skeena Resources’ (TSX: SKE) Eskay Creek open-pit project is seeking public comment by Sept. 25 for a BC environmental assessment. Meantime, Ascot Resources (TSX: AOT) has put its Premier mine on care and maintenance and launched a strategic review.

Also in the area, the Nisg̱a’a–Tahltan consortium last month agreed to buy the Stewart Bulk Terminal that serves Newmont’s (TSX: NGT; NYSE: NEM) Brucejack and the broader district. Seabridge Gold (TSX: SEA; NYSE: SA) is advancing KSM, the world’s biggest shovel-ready copper-gold project. And Goldstorm Metals (TSXV: GSTM) started geophysics at its Crown property near KSM/Brucejack.

Drilling deeper

The company used directional drilling to hit the Wolf target. Hole DV25-446 was a deflection from a north-sited mother hole near the base of the sedimentary cap, one of several daughter holes aimed along the plunge, the company explained.

Five diamond drills are working in the Dolly Varden’s Kitsault Valley – combining the Dolly Varden and Homestake Silver projects – and nearby Big Bulk projects. They’re doing step-outs and infill at Wolf and Homestake Silver. Also, exploration at the separate Big Bulk porphyry is planned. The campaign was expanded in July to 55,000 metres, with directional work designed to deliver more pierce points while trimming actual new core to about 41,000 metres.

The program follows a C$28.8 million financing that closed in June and a spring build-out of the district after acquiring the Kinskuch, Porter and MTB properties, broadening targets around Wolf and Homestake Silver.

Kitsault Valley hosts 3.4 million indicated tonnes at 299.8 grams silver per tonne for 32.9 million oz. silver, and 1.2 million inferred tonnes grading 277 grams silver for 11.4 million oz. at the Dolly Varden area, according to a report from 2022.