DV:CC - Dolly Varden Silver's (DV.V) Homestake Drill Results: A substantial zone of exceptional precious metal grades
(TheNewswire)
January 18, 2024 – TheNews w ire – Global Stocks News – OnJanuary 16, 2024 Dolly Varden Silver (TSXV:DV) (OTC:DOLLF) releasedexceptional drill results from its 2023 program atthe Homestake Silver deposit in BC's GoldenTriangle, including an intersection of 357 grams/tonne silver equivalent ,the length of city block ( 93.95meters ).
DV Silver is developing its 100% held Kitsault ValleyProject located in the Golden Triangle of British Columbia, Canada, 25kilometers by road to tide water. It also has a new consolidatedcopper-gold porphyry project in the Golden Triangle, similar to otherdeposits in the region (Red Mountain, KSM, Red Chris).
“We acquired Homestake at the beginning of 2022, andit doubled the size of our project,” Rob Van Egmond, V.P. DVSilver’s VP of Exploration told GSN’s CEO Guy Bennett.“ It had about millionounces of gold, mainly in the inferred category, and about 18 millionounces of silver all in the inferred category.”
“Homestake is split between three deposits,” Egmondcontinued. “The main two are Homestake Main and Homestake Silver.The first year we did infill drilling at Homestake Main to make surethe continuity and grade lined up with the stated resource. That wassuccessful. The infill holes had higher grades than theresource.”
“We are drilling both Homestake deposits with‘oriented core’, which gives us the structural measurement of thevein, how it sits in realspace . We are using that to develop amodel.”
The 23 drillholes reported total 12,150 meters ofdrilling targeting priority zones within the deposit and havesignificantly expanded the width and extent of the reinterpretedhigh-grade silver and gold mineralized plunge.
Highlights from Homestake Silver (intervals shown are core length**):
-
HR23-419 : Mineralizedenvelope: 315 g/t AgEq (2.57g/t Au and 102 g/t Ag) over 79.20 meters.
-
HR23-416 Mineralized envelope: 357 g/t AgEq (1.74 g/t Au, 213g/t Ag) over 93.95 meters.
-
HR23-415 : Mineralizedenvelope: 630 g/t AgEq (5.11g/t Au and 206 g/t Ag) over 22.80 meters
-
HR23-413 : Mineralizedenvelope: 226 g/t AgEq (1.40g/t Au and 110 g/t Ag) over 40.00 meters.
-
HR23-407: Mineralizedenvelope: 246 g/t AgEq (2.32g/t Au and 54 g/t Ag) over 55.90 meters.
-
HR23-411: Expansion step outhole to the southeast; 445 g/tAgEq (0.91 g/t Au and 369 g/t Ag) over 10.55 meters.
**Estimated true widths vary depending on intersectionangles and range from 65% to 85% of core lengths, further modelling ofthe new interpretation is needed before true widths can becalculated
"The 2023 drilling at Homestake Silver hasidentified a substantial zoneof exceptional precious metal grades , oftentypified by multiple phases of silver and gold mineralization, overwide, continuous intervals that are potentially amendable to bulk undergroundmining methods ," stated Shawn Khunkhun, CEOof Dolly Varden Silver.
Bulk mining generally has lower mining costs associatedwith it, allowing for a lower cut off grade bringing in more material,increasing the tonnage per day and number of ounces mined.
“Some of these old, narrow vein deposits don't work in the modernera,” Khunkhun told Guy Bennett, the CEO of GSN. “You don’t wantto be chasing narrow veins, hand sorting material. Our goal is thatDolly Varden Silver will create an efficient, highly mechanized minewith a low All-In-Sustaining-Cost (AISC).”
Drilling targeted the high-grade plunge within theHomestake Silver deposit. These holes focused on defining and expanding the wide gold andsilver (+/- lead and zinc) mineralized zone .
The reinterpretation concluded that the widermineralization zone at Homestake Silver is at a similar plungeorientation as that of the Homestake Main deposit, located 300 metersto the northwest.
The averagegrades are higher , on a precious metal silverequivalent basis, than the average grade of the silver deposits at theDolly Varden property to the south due to the increased gold content at the HomestakeRidge deposits .
Results from additional step-out holes to the north of theintercepts reported on January 16, 2024 are being finalized and are expected to be announcedshortly .
On November 2, 2023 Dolly Varden Silver announced thatit has closed a deal where Hecla Canada invested $10 million in DVSilver , raising its stake in DV Silver from10.6% to 15.7%.
Hecla Mining has a market cap of USD $2.59 billion andtrades on the New York Stock Exchange (NYSE). It produced 14.2 million ounces of silver in2023 .
“Hecla hasdemonstrated it is a sticky shareholder,” Khunkhun told Bennett,“They're looking to expand their North American silverportfolio.”
“Global industrial demand for silver in 2023 isexpected to set a record leading to another big market deficit,according to preliminary projections by the Silver Institute,” reports FX Street on January 8, 2024.
“Falling silver production in Mexico seems to bedeveloping as a trend. The country has historically ranked as theworld's top silver producer, but Mexican mine output has dropped 25%in the last two years,” continued FX Street.
“The photovoltaic industry is essentiallyrecession-proof due to support from governments around the world.While industrial offtake accounts for roughly half of global silverdemand, at its core, silver is a monetary metal. It tends to trackwith gold over time.”
“The current silver-gold ratio is just over 87-1.That means it takes over 87 ounces of silver to buy an ounce of gold.The average in the modern era has been between 40:1 and 50:1.Historically, the ratio has always returned to that mean. And when itdoes, it does it with a vengeance,” added FX Street.
Source: https://sdbullion.com/gold-silver-ratio
“The latest results from Homestake Silver - including 93 meters at 357 grams AgEqper tonne - indicate that the mineralisedenvelope is wider and higher grade than we had thought,” Van Egmondtold Bennett.
“The drill comes in at angle, so the true width isabout 50-60 meters,” Egmond continued. “This suggests a depositthat is amenable to bulk underground mining, which would bring thecut-off grade down, add more tonnes, and lower mining costs.”
Rob van Egmond, P.Geo., Vice-President Exploration forDolly Varden Silver, the "Qualified Person" as defined byNI43-101 has reviewed, validated and approved the scientific andtechnical information contained in this GSN news update and supervisesthe ongoing exploration program at the Dolly Varden Project
Contact: guy.bennett@globalstocksnews.com
Copyright (c) 2024 TheNewswire - All rights reserved.