Two High Grade Targets in Historical Region Underpin Confidence for a Major Discovery at Dolly Varden Silver

SOURCE:[Proactive Investors] – “Grade and volume trumps all. It’s a high-grade silver property with uniquely wide and massive mineralized horizons and those features are extremely important,” Nichols told Proactive Investors at the recent Subscriber Investment Summit in Vancouver, addressing the strongest points of the company’s project in northwestern British Columbia.

The area in which Dolly Varden Silver (CVE:DV) has its 100 per cent owned 9,400 hectare property is the epitome of an ideal location for silver and gold mining.

Indeed, the region was already known to president and CEO Ron Nichols through his work on the nearby Snip deposit such that when he was approached to become involved at the 2011 PDAC mining conference in Toronto, he leapt at the chance.

“Grade and volume trumps all. It’s a high-grade silver property with uniquely wide and massive mineralized horizons and those features are extremely important,” Nichols told Proactive Investors at the recent Subscriber Investment Summit in Vancouver, addressing the strongest points of the company’s project in northwestern British Columbia.  “Even at these lower silver prices, our economic model shows us to be a very robust and feasible project.”

Dolly’s chairman, John King Burns, concurs, saying the site is “now one of the most advanced geological targets” he’s ever seen. “Our Eskay Interval at Red Point presents a well-documented geological analogue for the Eskay Creek mine which at the same time has the potential to be larger and richer than Eskay Creek.  Separately, the DVT horizon that was exploited by the Torbritt mine should itself contain of 50 or more million additional ounces of silver.

After decades of experience in the business — Nichols is an engineer who specializes in advanced projects and has quarterbacked high-grade silver mines into production, while Burns was CFO of Drexel Burnham Lambert’s commodities group and also global head of derivatives trading at Barclays Metals Group — both men knew immediately that they wanted to sign on and get behind the project when the opportunity presented itself.

The company’s near-term goal is to drill out the Eskay Horizon at Red Point and the DVT at Torbrit (the Eskay horizon over lays the DVT horizon at Red Point) with the object of adding 100 -200 million ounces of silver, a 50 million ounce addition would   put it in position to make a production decision and to support further exploration.

The property is situated in the Northern reaches of British Columbia, an area that has of late been the focus of a resurgence of interest, and in the midst of a historic mining camp known for its high-grade silver. When viewed on a map, the slew of mines and historical operations in the area describe what seems to be a clear regional geological trend. Major nearby projects include Pretium’s Brucejack gold and silver operation, Ascot’s Silback Premiere historic site and of course, Barrick’s (TSE:ABX) noted Eskay Creek, which boasts 180 million ounces (M oz) of silver. Crucially, the fault-bounded rift within which Dolly Varden’s gold and silver deposits are clustered is in the same setting as the rift hosting the Eskay Creek deposit.

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Two High Grade Targets in Historical Region Underpin Confidence for a Major Discovery at Dolly Varden Silver

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