January 8, 2018 – Vancouver, BC: Dolly Varden Silver Corporation (TSX.V:”DV” – U.S.:”DOLLF”) (the “Company”, or “Dolly Varden”) is pleased to provide additional technical information on the results of the 2017 exploration program. This is in support of the “President’s Message to Shareholders” by Gary Cope, press released by the Company on January 4, 2018.
Ben Whiting, Vice President – Exploration for the Company, says; “In my opinion, there is an opportunity to double or triple the Mineral Resources in the Dolly Varden Mining Camp with a resource-focused drilling program.Three of the four new exploration discovery targets have thicknesses and grades comparable to or exceeding those of the existing deposits. Target sizes and grade ranges are presented for the exhalative-style and epithermal vein-style of deposits.” (See tables below and attached map).
The Torbrit North and Torbrit East target discoveries are clearly of the exhalative-style of silver and base metal mineralization, similar to the historic Torbrit Mine, but locatedin parallel and/or fault offset basins. For the purposes of scoping the size potential of these new discoveries, we considered the sum of the past-production and current resources in Torbrit, which equals 44.4 million ounces of silver in 4.01 million tonnes grading Ag 344 g/t. Thus, the potential for each of these two new targets is deemed to be in the range of 3.5 to 4.5 million tonnes at silver grades of 300 to 380 g/t (plus base metals credits). This could potentially result in two new deposits.
The Moose Lamb target discovery is an epithermal vein-style of mineralization and is similar to the historic Dolly Varden Mine. For the purposes of scoping the size potential of Moose Lamb, we considered the sum of the past-production and current resources in Dolly Varden, which equals 12.3 million ounces of silver in 0.59 million tonnes grading Ag 646 g/t. Thus, the potential for the Moose Lamb target is deemed to be in the range of 0.4 to 0.7 million tonnes at silver grades of 500 to 700 g/t (plus base metals credits).
Verification drilling was also conducted on the Dolly Varden and Torbrit Deposits during 2017. Though this component of the program was much smaller in extent than the exploration discovery component, it demonstrated the opportunity to expand current Mineral Resources adjacent to these deposits. In addition, the Company made a new grassroots discovery called “Beginners’ Luck”, which was tested with one drill hole, and there are still high-grade silver targets from previous exploration seasons, which deserve additional testing.
Note: The above tonnage and grade ranges for new targets are for planning purposes only, supported by limited drilling to date and should not be construed as Mineral Resources as defined under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
There are current (2015) Mineral Resource estimates for the Dolly Varden Property, compliant to the requirements of NI 43-101, at a cut-off grade of Ag 150 g/t. The 2015 Mineral Resource estimates contain Indicated Resources of 3.07 million tonnes grading Ag 321.6 g/t for 31.8 million ounces of silver and Inferred Resources of 0.90 million tonnes grading Ag 373.3 g/t for 10.8 million ounces of silver. See the “2015 Technical Report for the Dolly Varden Property” prepared for the Company, with an effective date of September 30, 2015 (the “Technical Report”), available under the Company’s profile on SEDAR at www.sedar.com.
Data from 2017 New Discovery Work
The Torbrit North target is a high-grade exhalative-style of mineralization, located 200 metres north and 220 metres deeper than the historic Torbrit Mine. Highlights of the 2017 drilling include the following:
The Torbrit East target is a high-grade silver exhalative-style of mineralization, with significant base metals values, located 70 metres east and 60 metres higher than the historic Torbrit Mine. It appears as an Upper-Torbrit East and a Lower-Torbrit East. Highlights of the 2017 drilling include the following:
The Moose Lamb target is a high-grade silver epithermal vein-style mineralization, similar to the Dolly Varden Deposit, adjacent to a major syn-basinal fault.
The Beginners Luck target is a breccia structure containing moderate silver grades, located in an area with very little previous work, 1,500 metres north and 400 metres higher than the historic Torbrit Mine. The significance of this target is that it opens up the prospectivity higher along the eastern slopes of the Kitsault Valley.
Data from 2017 Current Mineral Resource Areas Work
DOLLY VARDEN DEPOSIT
The historic Dolly Varden Mine was in production from 1919 to 1921 yielding direct ship ore for 1.3 million ounces of silver from 33.2 thousand tonnes at a grade of 1,100 g/t. The current (2015) Mineral Resource for the Dolly Varden Deposit stands at Indicated 10.5 million ounces of silver in 522 thousand tonnes grading 625 g/t and Inferred 0.54 million ounces of silver in 38.6 thousand tonnes grading 434 g/t. (See the Technical Report available under the Company’s profile on SEDAR at www.sedar.com). The 2017 drilling yielded considerable base metal grades in addition to silver. Highlights of the 2017 drilling include the following:
The historic Torbrit Mine was in production from 1949 to 1959 and yielded 18.7 million ounces of silver from 1.25 million tonnes at a grade of 500 g/t. The current (2015) resource for the Dolly Varden Deposit stands at Indicated 15.5 million ounces of silver in 1.91 million tonnes grading 251 g/t and Inferred 10.2 million ounces of silver in 0.85 million tonnes grading 373 g/t. (See the Technical Report available under the Company’s profile on SEDAR at www.sedar.com). Highlights of the 2017 drilling include the following:
Note 1: Silver-Equivalent Ag-Eq = Ag + (Pb%*22.046*Pb price*31.103/Ag price) + (Zn%*22.046*Zn price*31.103/Ag price). Metal prices used for this formula: Ag = $US 16.25/oz, Pb = $US 1.00/lb, Zn = $US 1.25/lb. No provisions have been made for relative metal recovery, thus 100% recovery is used for the silver-equivalent values.
Additional Targets of Merit
From previous years of exploration on the Dolly Varden property there are several high-grade silver targets, which are located within the Dolly Varden land position, but well outside of current Mineral Resource block models, or new discovery areas:
KITSOL is an epithermal vein-style of mineralization, including an intercept of 26 metres grading Ag 712 g/t.
ACE-GALENA contains both styles of mineralization, including an epithermal vein of 3.15 metres grading Ag 591 g/t and an exhalative horizon intercept of 3.25 metres grading Ag 406 g/t.
Two targets on the Dolly Varden property have historic resources (non-compliant with NI 43-101) dating from 1976. These include CHANCE at 38.3 thousand tonnes grading Ag 339 g/t and MOOSE-CLIMAX at 27.3 thousand tonnes grading Ag 280 g/t. Historic Mineral Resources remain as targets, as they have not had sufficient work performed by a Qualified Person to classify these historic estimates as current and the Company does not consider them as current.
The 2017 exploration program for Dolly Varden consisted of:
- 45 diamond drill holes totalling 15,728 metres, of which 80% were exploration/reconnaissance purposes and 20% were resource validation in the areas of the current Mineral Resources.
- Lower than budgeted costs per metre were achieved, with the cooperation of all of our service providers, in a safely run program and with no environmental incidents.
- 5,434 samples were analysed for silver by fire assay and multi-element ICP, including 5,133 core samples and 301 control standards (not counting duplicate analyses). Sample testing was performed by a certified, independent, commercial laboratory (ALS Global). A rigorous QA/QC program was performed throughout the diamond drilling program, utilizing commercially sourced geological reference samples and blanks.
- LiDAR (Light Detection and Radar) airborne geophysical survey over the Dolly Varden Project at a resolution of 25 cm, conducted by McElhanney Consulting Services Ltd.
- ZTEM (Z-Axis Tipper Electromagnetic System) and total-field aeromagnetics geophysical survey over the Big Bulk Project, conducted by Geotech Ltd.
- Community relations consultation with the First Nation – Nisga’a Lisims Government.
A drill hole location map of the Western, Mine and Central Sectors area is posted on the Dolly Varden Silver Corporation website at www.dollyvardensilver.com.
Technical Information and Qualified Persons
Ben Whiting, P.Geo., Vice President of Exploration and Robert van Egmond, P.Geo., Chief Geologist for Dolly Varden, serve as ‘Qualified Persons’ under NI 43-101, and have approved the scientific and technical information contained in this news release.
About Dolly Varden
Dolly Varden Silver Corporation is a mineral exploration company focused on exploration in northwestern British Columbia. Dolly Varden has two projects, the namesake Dolly Varden silver property and the nearby Big Bulk copper-gold property. Since December 2016, Dolly Varden has been under the direction of new management provided by the experienced Belcarra Group Management Ltd. (“Belcarra Group”). The Belcarra Group is comprised of highly qualified mining and financial professionals.
The Company’s common shares are listed and traded on the TSX.V under the symbol “DV” and on the OTCBB system under the symbol “DOLLF”.
This release may contain forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Dolly Varden to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward looking statements or information relates to, among other things, the results of previous field work and programs, results of mineral resource estimate on the project, the potential to grow the project, the potential to expand the mineralization, the planning for further exploration work, the ability to de-risk the potential exploration targets, and our belief about the unexplored portion of the property. These forward-looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.
Note: Mineral resources are not mineral reserves, and thus have not demonstrated economic viability.
For additional information on risks and uncertainties, see the Company’s most recently filed annual management discussion & analysis (“MD&A”), which is available on SEDAR at www.sedar.com and on the Company’s website at www.dollyvardensilver.com. The risk factors identified in the MD&A are not intended to represent a complete list of factors that could affect the Company.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
Dolly Varden Silver Corporation
Gary Cope, President and CEO
Dolly Varden Silver Corporation
Alex Tsakumis, Vice President – Corporate Development