Dolly Varden Silver Corp. (DV:TSX.V; DVS:NYSEA; DVQ:FSE) kicked off its 2025, 35,000 meter-plus (35,000m-plus) exploration program at its Kitsault Valley project in British Columbia’s Golden Triangle with four active drill rigs, reported Haywood Securities Analyst Marcus Giannini in a May 28 research note.
“With multiple high-grade trends open for expansion at the project, we believe Dolly is well-positioned to deliver further exploration success as it continues to demonstrate the scale and growth potential of the Kitsault Valley trend,” Giannini wrote.
151% Upside Potential
On the news, Haywood maintained its CA$9.60 per share target price on the Canadian explorer, trading at the time of Giannini’s report at CA$3.83 per share, the analyst noted. The target implies a 151% return.
Dolly Varden remains a Buy.
“We continue to view Dolly’s high-grade endowment as an increasingly attractive target for larger North American-focused precious metal producers,” Giannini wrote.
As of May 28, the company had 81.6 million shares outstanding, a market cap of CA$312 million (CA$312M) and a 52-week range of CA$3.21–5.84 per share.
Drill Program Specifics
Of the 35,000m of drilling planned for this season, Giannini reported, about 60% of it will be done at the Dolly Varden properties to the south, including Big Bulk, and the remaining roughly 40% at the Homestake Ridge property to the north. A major aim is to continue expanding the high-grade mineralization downplunge under the Upper Hazelton rocks.
As such, the Wolf vein is a priority, and four rigs are active there now, targeting stepouts on the deposit’s southwest side. At that location, the intensity of veining, alteration and mineralization increases the closer it gets to the central valley fault system projection connecting to the Torbrit deposit. As such, Dolly Varden will continue testing, at depth, the area between Wolf and the Torbrit/Kitsol deposits. First, it will drill westerly stepouts from hole DV24-421 that previously hit 379 grams per ton (379 g/t) silver, 0.64% lead and 0.66% zinc over 21.69m.
At Homestake Main, Dolly Varden’s objective with drilling is to expand the precious metals-rich trend the company has been delineating over recent seasons. Testing areas extending toward the still-open Homestake Main deposit will be a priority.
About 1.5 kilometers (1.5 km) north of Wolf is the Moose vein that the mining junior also will drill this season. It will test the downplunge extension from hole DV24-387 that previously returned 977 g/t silver over 5m, including 3,670 g/t silver over 0.79m. Also, Dolly Varden will do tighter-spaced drilling in key zones to support the upcoming mineral resource estimate (MRE) update.
Another element of the 2025 program is drill testing the Red Point regional target for high-grade structural corridors. The explorer identified these corridors through reinterpretation of downhole structural data and then prioritized Red Point among its regional targets.
Also slated for drilling is the Big Bulk property, specifically the northeast-trending copper-gold porphyry system there. The mineralization styles present at Big Bulk are similar to those of nearby porphyry and skarn deposits like Ascot Resources Ltd.’s (AOT:TSX.V) Red Mountain and Seabridge Gold Inc.’s (SEA:TSX; SA:NYSE.MKT) KSM. Big Bulk is about 5 km east of the main Kitsault Valley project area.
Land Package Expansion
Giannini reported that Dolly Varden recently acquired two assets in the Golden Triangle, Hecla Mining Co.’s (HL:NYSE) Kinskuch property, in a US$5M share deal, and StrikePoint Gold Inc.’s (SKP:TSX.V; STKXF:OTCQB) Porter project, for a CA$1.1M share payment. Kinskuch alone quadrupled Dolly Varden’s existing land package size.
Kinskuch hosts the prospective Illiance trend and the past-producing Esperanza mine whose grades are akin to those at the historical Dolly Varden mine, noted Giannini. The company plans to do geological mapping of the Illiance trend to identify drill targets and if possible, drill them later this season.
Porter, the analyst described, features two shear-hosted silver vein systems that could be connected given the presence of an unexplored trend between them.
What to Watch For
Upcoming catalysts for Dolly Varden include drill results on an ongoing basis, followed early next year by completion of an update to the current Kitsault Valley MRE, noted Giannini.
“Dolly’s technical team has continued to refine their understanding of the regional controls on mineralization at Kitsault Valley over recent campaigns, positioning Dolly for another catalyst-rich drilling season,” the analyst added.
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Disclosures for Haywood Capital Markets and Dolly Varden Silver Corp., May 28, 2025:
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.
This report is not intended to provide personal investment advice. Investors are encouraged to seek advice regarding the advisability or suitability of any investments or strategies discussed in this report. Individuals involved in the production of research materials operate independently and without influence from any other Haywood Securities Inc. departments, including Haywood Securities Inc. affiliates. This report is not and is not to be construed as: (i) an offer to sell or solicitation of an offer to buy securities; (ii) an offer to transact business in any jurisdiction; or (iii) investment advice to any party. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in our research is suitable for their particular circumstances and, if appropriate, seek professional advice, including tax advice. Products and services described herein are only available where they can be lawfully provided. All research reports are disseminated and available to all clients simultaneously. No part of this material or any research report may be (i) copied, photocopied or duplicated in any form by any means or (ii) redistributed without the prior written consent of Haywood Securities Inc.
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.
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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; and 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.
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