Drilling Reveals Silver Grade of 2,505 G/T

Source: Marcus Giannini 08/16/2024

This assay is one of the first from the 2024 drill campaign at the Canadian explorer's project in the Golden Triangle, noted a Haywood Securities report.

The initial 2024 results are in for Dolly Varden Silver Corp.'s DOLLF ongoing drill campaign in the Wolf vein of its Kitsault Valley silver-gold project in British Columbia's Golden Triangle, and they "continue to push the margins of known high-grade mineralization" reported Haywood Securities analyst Marcus Giannini in an August 12 research note.

"Overall, these initial results from Wolf continue to illustrate the uncapped nature of the vein system at depth, as additional assays downplunge are anticipated in the near term" Giannini wrote.

147% Return Potential

Dolly Varden Silver's stock price is about CA$0.97 per share. The company "trades at a price:net asset value multiple of ~0.39x, versus peers trading at an average P:NAV multiple of ~0.80x" noted Giannini. "We recommend accumulating shares at current levels."

Haywood reiterated its price target on the Canadian explorer of CA$2.40 per share. This implies a 147% return for investors given the share price at the time of the report.

"We continue to view Dolly's high-grade endowment as an increasingly attractive target for larger North America-focused precious metal producers" the analyst commented.

Dolly Varden is a Buy.

Impressive Grades Encountered

The most notable intercept came from DV24-404, a 40-meter (40m) southwest stepout hole, reported Giannini. It returned 1,091 grams per tonne (1,901 g/t) silver over 9.38m, including 2,505 g/t silver over 1.63m, beginning at 766.82m downhole.

"We continue to see a strong consistency of mineralization within Wolf as well as an increase in base metal content, with the width and dip of the currently defined ore body playing well into a potential long hole stoping mining scenario" Giannini wrote.

The higher base metal grades and native silver presence intersected via the hole suggest the system remains open at depth.

Pending Results To Add Color

Along with DV24-404, Dolly Varden placed two additional stepout "daughter" holes using directional drilling, reported Giannini. The company directed these toward the base of the sedimentary cap to target Wolf's downplunge extension, steered them to intersect the Wolf vein and place them at least 30m apart from one another. This is because the upper area that Dolly collared the holes in also returned gold mineralization.

The results of these "daughter" holes are pending but, when available, should shed further light on the continuity of mineralization at depth.

Mineralization Elusive in Two Holes

Another two holes, DV24-396 and DV24-402, drilled in the upper, northeastern portion of the Wolf vein extension, tested for mineralization below plunge of a high-grade interval reported in 2021, Giannini relayed. However, the holes did not encounter the mineralization.

They did return strong alteration and higher base metal values associated with the Wolf structure.

Program Expansion Likely

Dolly Varden budgeted 8,000m of drilling for the Wolf vein because "high-grade silver mineralization continues to trend downplunge below the sedimentary rock cover" wrote Giannini. However, the company likely will expand the scope of the program due to the recent positive results from Wolf and the previous findings from the Moose and Chance veins.

"The company's 2024 campaign continues to demonstrate the multifaceted potential at Kitsault Valley as Dolly continues to demonstrate various avenues of growth across its property" Giannini commented.

To determine the extent of the high-grade mineralized trend encountered in hole DV24-404, reported Giannini, Dolly Varden Silver intends to prioritize Wolf vein drilling to the southwest during the rest of this season.

Also, the explorer is expected to do follow-up drilling between Homestake Silver and Homestake Main in light of positive results of stepout hole HR23-389, which returned 79.49 g/t gold over 12.45m.

Important Disclosures:

1. Dolly Varden Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Dolly Varden Silver Corp.
3. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

Disclosures for Haywood Capital Markets, Dolly Varden Silver Corp., August 12, 2024

This research report is only for informational purposes. Nothing contained in this report is, or should be, relied upon as a promise or representation as to the future performance. The opinions and information in this communication constitutes the current judgment of the authors as of the date and time of this report and are subject to change without notice. There is no representation, warranty or other assurance that any projections contained in this report will be realized. Past performance is not indicative of future results.

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Analyst Certification

I, Marcus Giannini, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer's shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures

Of the companies included in the report the following Important Disclosures apply:

• Haywood Securities, Inc. has reviewed lead projects of Dolly Varden Silver Corp. (DV-V) and a portion of the expenses for this travel may have been reimbursed by the issuer.
• Haywood Securities, Inc. or an Affiliate has managed or co-managed or participated as selling group in a public offering of securities for Dolly Varden Silver Corp. (DV-V) in the last 12 months.