Silver Miner Uncovers Massive High-Grade Golden Triangle Deposits

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Dolly Varden Silver Corp. (DV:TSX.V; DVS:NYSEA; DVQ:FSE) announced that the TSX Venture Exchange has approved the filing of documents for the acquisition of 100% interest, or the rights to obtain a 100% interest, in several mineral claims in British Columbia's Golden Triangle.

Included in that are interests in certain joint ventures, the company said. The properties include American Creek (which includes the Mountain Boy, Silver Crown, and Dorothy properties), the BA property, the Theia property and the Red Cliff property.

Last month, the company completed its purchase of the Kinskuch and Porter projects, which are also in the Golden Triangle, increasing the size of its Kitsault Valley Project to about 77,000 hectares (ha).

Kinskuch was obtained from mining major Hecla Mining Co. for consideration of CA$5 million or 1.35 million shares. Hecla also retains a 2% net smelter return (NSR) royalty on the property.

Hecla has a market cap of US$3.23 billion and operates in the Yukon, Alaska, Idaho, and British Columbia. It holds a 12% stake in the company.

"Our land package is surrounded by Hecla property," Chief Executive Officer, President, and Director Shawn Khunkhun has said. "Two of our technical advisors work for Hecla and are familiar with the styles of deposits we have."

In its June 27 release announcing the approval of the American Creek, BA, Theia, and Red Cliff acquisitions, the company said the purchases were made in consideration of more 486,000 DV common shares.

The seller of the properties will also receive a 1% NSR royalty on the American, BA, and Silver Crown properties. However, no NSR will be granted for Red Cliff or Dorothy. Dolly Varden said it will take on all rights and obligations associated with an existing joint venture agreement for Red Cliff, as well as all rights and obligations under the current option agreement for the Dorothy property. 

"Shawn's vision for Dolly Varden is clear: becoming the premier advanced explorer in the Golden Triangle," Jeff Valks wrote for The Gold Advisor.

'Carving Out Its Claim'

Described as the standout among the recent transactions, the American Creek Property was highlighted by Valks for its significant potential. This 2,602-hectare area is home to the renowned Mountain Boy high-grade silver mine. Valks referenced historical records from BC Government Minfile Reports, which detailed silver output at Mountain Boy during various periods, showcasing impressive silver grades ranging from 8,000 to 17,000 grams per tonne (g/t). Notable drilling results include 5.1 meters of 5,258 g/t silver (Ag) and 6.1 meters of 2,260 g/t Ag, indicating substantial mineralization that extends both vertically and horizontally.

In an update after DV announced the closing of the purchases, Valks wrote in The Gold Advisor that Dolly Varden had just finished a CA$28.76 million bought-deal placement, "finalizing a three-part capital raise that drew participation from high-profile investors — including Eric Sprott for approximately 10%."

"Shawn's vision for Dolly Varden is clear: becoming the premier advanced explorer in the Golden Triangle," Jeff Valks wrote for The Gold Advisor.

"Participation from Eric Sprott adds a familiar signal boost to investors watching Canada's more advanced silver developers," wrote Valks on June 26. "On the day this raise was announced, the stock fell roughly 6% and we called it a great day to add shares. The market must be happy overall though, because the stock is up today on the closing of the raise — marking an 18% increase over the last six months. I hold a long position, as does Jeff Clark."

Following the Kinsuch acquisition, Raymond James Analyst Craig Stanley remarked on the significant expansion potential, noting that it would triple DV's exposure along the Red Line, a critical boundary between the Triassic Stuhini and Jurassic Hazelton formations known for its association with precious metals and copper deposits. Stanley rated the stock Outperform set a target price of CA$3.52 per share.

Highlighting Dolly Varden's financial strength, Stanley mentioned the upcoming update to the Kitsault Valley mineral resource estimate, which will incorporating data from recent drilling campaigns.

Expanding Mineral Resources

The ongoing drill initiative in Kitsault Valley spans over 35,000 meters and fully financed. It aims to expand the company's mineral resources and underscore its substantial size.

Kitsault Valley holds promise for additional valuable mineral deposits, drawing parallels to other notable high-grade sites like Skeena Resources Ltd's (SKE:TSX.V) Eskay Creek and Newmont Corp.'s (NEM:NYSE) Brucejack. Dolly Varden highlighted the interconnected nature of Kitsault Valley and the Illiance trends, identifying them as integral components of a larger geological formation dating back to the Eskay Rift era.

The Illiance trend, in particular, has received minimal contemporary exploration efforts, primarily consisting of targeted diamond drilling by Hecla along the 3-kilometer-long Illy epithermal system.

The Catalyst: Silver Prices to 'Skyrocket'?

Silver (XAG/USD) maintained its position near US$36 as the dollar softened and market expectations shifted, according to Arslan Ali writing for FX Empire on Monday.

Recent economic data triggered revisions in rate forecasts, with U.S. personal spending showing a slight decline of 0.1% in May and individual income contracting by 0.4% — marking the most significant monthly drop since September 2021. These figures reinforced the notion of a cooling economic landscape, despite inflation remaining relatively subdued.

Market sentiment, as reflected in the CME FedWatch Tool, now indicates a 74% likelihood of a rate cut by September, with a second reduction anticipated before the year concludes. ING strategists highlighted that the Fed's messaging is increasingly influenced by incoming data, fueling speculation that the scope for monetary easing is expanding.

Consequently, the U.S. Dollar Index dipped by 0.2%, boosting the attractiveness of commodities priced in dollars. However, the upward momentum of silver is tempered by easing geopolitical tensions, such as the ceasefire between Israel and Iran and advancements in U.S. trade talks, which have diminished the demand for traditional safe-haven assets, Ali noted.

According to a report by Nishtha Awasthi for The Economic Times on June 28, financial author Robert Kiyosaki, known for his influential book "Rich Dad Poor Dad," has once again captured attention with a prediction that could refocus investor interest on silver. Through his official social media platform X, Kiyosaki shared his forecast, stating, “Silver price will skyrocket in July.”

Highlighting silver as a prime "asymmetric buy" opportunity, Kiyosaki emphasized its potential for significant upside gains with minimal downside risk. He stressed that silver's appeal lies in its accessibility to all at present, cautioning that this may not be the case in the future.

Meanwhile, industry analysts are also anticipating sustained momentum in the silver market. Jigar Trivedi, Senior Research Analyst specializing in Currencies & Commodities at Reliance Securities, pointed out silver's growing prominence amidst escalating geopolitical tensions and trade uncertainties. While gold retains its status as a traditional safe-haven asset, Trivedi highlighted silver's unique position due to its increasing industrial utility, particularly in sectors like electric vehicles (EVs).

Trivedi projected that COMEX silver prices could climb to $36–$37 per ounce, with MCX silver potentially reaching Rs 1,10,000 per kg within a month. He attributed the anticipated price upswing to a combination of a weakening dollar and inflows into safe-haven assets, recommending a diversified investment approach with a 12–15% allocation to silver.

Observing a significant shift in silver's price trajectory, Jateen Trivedi, VP Research Analyst focusing on Commodity and Currency at LKP Securities, noted the metal's downward trend following its peak in 2011 at $49.50 (approximately Rs 73,000). However, a notable reversal began in 2020, leading to a remarkable surge of nearly 60% over the past two years, with prices climbing from Rs 87,000 to Rs 1,04,500 in 2025. He anticipates silver to potentially reach levels of Rs 1,10,000–Rs 1,20,000 by the end of this year.

Ownership and Share Structure

According to the company's latest corporate presentation in January 2025, 52% of its stock is held by institutional investors, including Fidelity Management & Research Company LLC, Sprott Asset Management LP, U.S. Global Investors Inc., and Delbrook. 

About 37% is with strategic investors, including 15% with Fury Gold Mines, 12% with Hecla, and Eric Sprott owns 10% himself. 

The rest, 11%, is with retail and high-net-worth investors.

The company has 81.27 million outstanding shares. Its market cap is CA$361.65 million, and its 52-week trading range is CA$3.21–CA$5.84 per share.