This bodes well for the possibility of bulk mining at this silver-gold project in British Columbia, noted a Research Capital Corp. report.
Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) encountered more bonanza gold grades while drilling the Homestake Silver deposit at its Kitsault Valley project in northwestern British Columbia, reported Research Capital Corp. analyst Stuart McDougall in a November 4 research note.
These results "bolster [the] potential for bonanza grades and bulk mining potential," McDougall wrote.
McDougall reiterated Research Capital's target price of CA$1.45 per share on the Canadian explorer.
"Our target price still reflects an assumed 25% increase in both metals for that and the project's six other zones, valued at US$3 per ounce (US$3/oz) and US$75/oz, respectively, adjusted for options," the analyst explained.
Dolly Varden Silver's share price at the time of the report was about CA$1.26. The difference between the current and target prices suggests a 15% return.
The company remains a Speculative Buy.
McDougall discussed the new drill results. Dolly Varden Silver reported the results of five holes, and three of them showed grades higher than the resource averages. Hole HR24-432, for example, returned "a spectacular" 701 grams per ton gold (701 g/t Au) and 184 g/t silver (Ag) over 0.54 meters (0.54m). This hole, collared 65m along strike of hole HR24-435, also showed 13.94m, averaging 29.24 g/t Au and 16 g/t Ag.
Another intercept, from hole HR-435, collared in the deposit's central area, confirmed the potential for tonnage in the higher-grade core. It demonstrated 34.93m averaging 12.23 g/t Au and 84 g/t Ag, including three higher-grading subintervals. These were 74.15 g/t Au and 376 g/t Ag over 2.43m, 34.98 g/t Au and 75 g/t Ag over 2.43m, and 54.4 g/t Au and 346 g/t Ag (plus 17.28% lead and zinc) over 1m.
Other highlight results included:
0.7m of 12.64 g/t Au and 10.1 g/t Ag over 0.7m, from hole HR24-445. This was followed shortly by 0.5m at 8.75 g/t Au and 28.2 g/t Ag over 0.5m, which undercut hole HR24-435 by about 250m. The enclosing halo averaged 2.18 g/t Au and 5.25 g/t Ag over 14.11m.9.95m averaging 4.58 g/t Au and 6 g/t Ag, from hole HR24-442, which undercut hole HR24-432 by about 250m. The last 1.69m downhole returned grades of 14.96 g/t Au and 14 g/t Ag, "suggesting potential for expansion of the higher grades at depth," noted McDougall.True widths were estimated at 70-85% of the core lengths.
The technical report for Homestake Ridge, updated in March 2023, confirmed previous resources, McDougall reported. It combined and included the results of two previous sets of drill programs. One set encompassed 91,000m of drilling between 2019 and 2024 in the original Dolly Varden block. The other included about 50,000m drilled between 2022 and 2024 on the northern Homestake Ridge block.
Drill results from this year are pending for 23 of the 69 holes drilled over 31,726m. These data and other project updates, expected in the near term, could boost Dolly Varden Silver's share price.
| Want to be the first to know about interestingGold andSilver investment ideas?Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
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.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.Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. 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.For additional disclosures, please click here.
Disclosures for Research Capital Corp., Dolly Varden Silver Corp., November 4, 2024
Analyst Certification I, Stuart McDougall, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst's personal views and (ii) no part of the research analyst's compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.
Relevant Disclosures Applicable to Companies Under Coverage Relevant disclosures required under IIROC Rule 3400 applicable to companies under coverage discussed in this research report are available on our website at www.researchcapital.ca
General Disclosures The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation ("RCC") are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions.
Company Specific Disclosures Within the past 12 months, Research Capital has provided investment banking services to the issuer.
Distribution Policy Through www.researchcapital.com, our institutional and corporate clients can access our research as soon as it becomes available, 24-7. New reports are continually uploaded to the site as they become available throughout the day. Clients may also receive our research via Reuters, Bloomberg, FactSet, and Capital IQ. All of our research is made widely available at the same time to all Research Capital client groups entitled to our research. In addition, research reports are sent directly to our clients based on their delivery preference (mail, fax, e-mail).
Fair Dissemination of Research Reports and Ratings To the extent reasonably practicable, Research Reports will be disseminated contemporaneously to all of Research Capital Corporation ("RCC") customers who are entitled to receive the firm's research. Until such time, Research Analysts will not discuss the contents of their reports with Sales and Trading or Investment Banking employees. RCC equity research is posted to our proprietary website to ensure eligible clients receive coverage initiations and changes in rating, targets and opinions in a timely manner. Additional distribution may be done by the sales personnel via email, fax or regular mail. Please contact your investment advisor for more information regarding RCC research.
Percentage Distribution of Research Ratings As required by the Investment Industry Regulatory Organization of Canada, Research Capital provides a summary of the percentage of its recommendations that fall into each category of our ratings. Please click this link Our Research - Research Capital Corporation to see our distribution of ratings.
Potential Conflicts of Interest All Research Capital Corporation ("RCC") Analysts are compensated based in part on the overall revenues of RCC, a portion of which are generated by investment banking activities. RCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. RCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned in our Research Reports as principal or agent. RCC makes every effort possible to avoid conflicts of interest, however readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.
RC USA INC. Information about Research Capital Corporation's Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is available on our website at www.researchcapital.com. The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Research Capital Corporation assume any responsibility or liability. Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. Contents of this report cannot be reproduced in whole or in part without the express permission of Research Capital Corporation. US Institutional Clients - Research Capital USA Inc., a wholly owned subsidiary of Research Capital Corporation, accepts responsibility for the contents of this report subject to the terms and limitations set out above. US firms or institutions receiving this report should effect transactions in securities discussed in the report through Research Capital USA Inc., a Broker - Dealer registered with the Financial Industry Regulatory Authority (FINRA). Member - Canadian Investor Protection Fund / membre - fonds canadien de protection des ?pargnants