Mining Co. Uncovers 'Exceptional' Results at BC's Kitsault Valley

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Dolly Varden Silver Corp. (DV:TSX.V; DVS:NYSEA; DVQ:FSE) has announced the results from its 2025 drilling on the Wolf Vein, as detailed in a January 20 release.

The company completed a total of 32 drill holes at the Wolf Vein, combining infill and vertical extension as well as southwest step-outs towards the projected position of the Central Valley Fault.

High-grade silver mineralization was encountered in infill drill holes, including DV25-435, which returned 467 grams per tonne (g/t) silver over 15.32 meters, with 1,309 g/t silver over 2.32 meters within the mineralized plunge.

A notable discovery during the 2025 program was mineralization similar to the Torbrit silver deposit at a shallow depth across the Central Valley Fault (CVF). Drill hole DV25-470 intersected 518 g/t silver over 0.52 meters. Part of the 56,131 meters drilled in 2025 at the Company's 100% owned Kitsault Valley Silver and Gold Project focused on the Wolf Vein to expand and infill along the plunge of high-grade silver mineralization to the southwest and test across the CVF once encountered.

"In addition to the successful infill and expansion of the Wolf Vein, the discovery of silver-bearing mineralization similar to the Torbrit Deposit is a very significant step in connecting the Wolf Vein with Torbrit, located over 1 kilometer to the south," said President and Chief Executive Officer Shawn Khunkhun. "Connecting the two largest silver deposits in the Kitsault Valley trend has been a priority goal of our exploration team."

Highlights from Wolf Vein infill and vertical expansion drilling include:

• DV25-435: 467 g/t Ag (silver), 0.60% Pb (lead), and 0.66% Zn (zinc) over 15.32 meters, including 1,309 g/t Ag, 0.19% Pb, and 0.24% Zn over 2.32 meters.
• DV25-436: Zone 2: 323 g/t Ag, 1.16% Pb, and 2.13% Zn over 22.86 meters, including 644 g/t Ag, 1.33% Pb, and 1.33% Zn over 5.74 meters; 319 g/t Ag, 0.31% Pb, and 1.15% Zn over 13.08 meters, including 1,820 g/t Ag, 0.07% Pb, and 0.47% Zn over 0.50 meter.
• DV25-439: 659 g/t Ag, 5.30% Pb, and 9.27% Zn over 4.87 meters, including 3,450 g/t Ag, 2.02% Pb, and 5.56% Zn over 0.55 meter.
• DV25-461: 419 g/t Ag, 1.90% Pb, and 1.17% Zn over 10.90 meters, including 2,300 g/t Ag, 13.90% Pb, and 5.55% Zn over 1.00 meter.

Two drill holes testing below the lower extent of the plunging silver zone intersected gold values from within the Wolf structure and vein extension down dip, Dolly Varden stated in the release.

Follow-up drilling at hole DV25-467 targeting 60 meters down dip from DV25-446 intersected the vein grading 2.15 g/t Au (with 0.23% Pb and 5.19% Zn) over 3.77 meters, with no significant silver, the company reported.

DV25-457 also explored below the main silver plunge zone and encountered 0.53 g/t Au over 6.85 meters within the broader Wolf Structure alteration zone, which graded 15 g/t silver and 0.22 g/t gold (with 0.48% lead and 0.49% zinc) over 26.85 meters, according to the release.

Results Are 'Exceptional,' Expert Says

According to a January 21 report by Peter Krauth of Silver Stock Investor, "Many of these results are exceptional."

A highlight in 2025 was the discovery of Torbrit-style mineralization near the Central Valley Fault (CVF). Drill hole DV25-470 yielded 518 g/t Ag over 0.52 meters at a shallow depth, marking a crucial step in connecting the Wolf Vein with the Torbrit deposit, located over a kilometer to the south—a key exploration objective for the company, Krauth said. These findings confirm the Wolf Vein as a structurally controlled, multi-phase epithermal system hosted in Jurassic Hazelton Formation volcanic rocks. High-grade silver, along with significant lead, zinc, and gold values, continues to extend along a southwest-plunging 1,100-meter zone.

The discovery of silver mineralization beneath the sedimentary cap and the Torbrit-style intercept across the CVF presents exciting exploration opportunities for 2026, Krauth noted. The Wolf Vein remains a high-potential target for linking two of the largest silver deposits in the Kitsault Valley trend.

"Dolly remains a core holding as it does tremendous work to keep proving up and growing the high-grade resource," Krauth wrote. "Their merger with Contango Ore should help fund the growth and could provide a rerate as the market realizes that growth could require significantly less dilution going forward. I’m glad to own and remain very patient with this story."

Following the merger announcement, Research Capital adjusted its rating on Dolly Varden to Tender from Speculative Buy.

The merger with Contango ORE Inc. will create a North America-focused gold and silver company with assets spanning from advanced exploration to production, as reported by Haywood Securities Analyst Marcus Giannini in a December 8 research note. The transaction is expected to finalize between late February and early March 2026.

"We believe the arrangement makes sense from a strategic perspective, offering non-dilutive capital from cash flow generated from [Contango's] Manh Choh [project] to fund exploration and the eventual development of [Dolly's] Kitsault Valley," Giannini wrote. "Dolly has continued to showcase uncapped growth upside at Kitsault, and we expect further advancement of the asset to remain a key growth driver of the merged company."

Haywood Securities maintained its CA$11.25 per share target price on Dolly Varden Silver, which was trading at about CA$6.51 per share at the time of Giannini's report. From that share price, the return to target is 73%. Dolly remains a Buy.

"We expect the high-grade, North American-focused asset base will appeal to a wider investment audience, offering a rerating opportunity," Giannini wrote.

Following the merger announcement, Research Capital adjusted its rating on Dolly Varden to Tender from Speculative Buy, according to an updated note by Analyst Stuart McDougall on December 9.

"Although the implied value falls short of our previous target price of CA$7.60 per share, we see the longer-term benefits of the combination and think some of the immediate hit is offset by exposure to high-grade production from Contango's 30% interest in the Manh Choh gold mine in Alaska," McDougall wrote. At the time of his report, the Canadian explorer was trading at about CA$6.14 per share.

The merged company would be equally owned by the two groups of shareholders, with approximately 30 million shares outstanding, resulting in an implied market capitalization of CA$1.13 billion, and holding about US$100 million in net cash, according to McDougall. Additionally, the new entity would possess 3,000,000 ounces of gold equivalent to advance towards production decisions before the depletion of attributable reserves. The company would be listed on the New York Stock Exchange American and the Toronto Stock Exchange.

The Catalyst: Ongoing Geopolitical Tensions Fuel Safe-Haven Buying

New trade tensions between the US and Europe over Greenland are the latest catalyst driving investors toward gold and silver, according to Samuel O'Brient writing for Business Insider on January 20.

Silver surged 8% to surpass US$95.20 an ounce on Tuesday.

Investors have been unsettled by President Donald Trump's recent conflict with the European Union regarding Greenland. Trump has intensified his calls for the US to take control of the Danish territory, threatening tariffs while European leaders considered imposing their own in response.

"Geopolitical uncertainty has boosted demand for both silver and gold just as they were taking off in near-parabolic fashion," said David Morrison, senior market analyst at TradeNation, according to O'Brient. "They have become the havens of choice for investors, and this has been bolstered by recent U.S. dollar weakness. Silver also has a strong back story."

Morrison noted that while rising prices increase the likelihood of a market correction, the ongoing geopolitical uncertainty and Trump's reluctance to ease trade tensions could sustain the rally in metals for the foreseeable future.

Technically, for March Comex Silver, the primary trend is upward according to the daily swing chart, James Hyerczyk wrote for FX Empire on January 21. A move above Tuesday’s high of US$95.78 will confirm the uptrend. The nearest minor support is at the pivot of US$90.95, followed by a minor swing bottom at US$86.12. A trade below this level will shift momentum downward. The next support levels are at US$82.51, followed by a long-term uptrend line at US$79.68.

For Spot Silver (XAGUSD), the main trend is also upward, Hyerczyk noted. A trade above the record high of US$95.88 will confirm the uptrend, while a move below US$86.43 will shift momentum downward, he said. Potential support levels are at US$91.15 and US$82.97.

Ownership and Share Structure¹

Institutional investors hold 52% of the company. Among them, Hecla Mining Co. (HL:NYSE) owns 13%, while other key investors include Fury Gold Mines Ltd. (FURY-T) with 12% and Eric Sprott with 9%. The remainder is held by retail investors.

Dolly Varden has 90.91 million shares outstanding, with a market capitalization of CA$672.76 million. Its 52-week range is CA$3.21–CA$7.46 per share.