- Dolly Varden Silver (TSXV:DV) signed a definitive agreement to acquire the Kinskuch property from Hecla Mining (NYSE:HL), quadrupling its presence in British Columbia’s Golden Triangle
- Dolly Varden is a junior miner advancing its Kitsault Valley gold and silver project in British Columbia, which is estimated to contain over 32.9 million ounces of silver equivalent indicated and 11.4 million ounces inferred
- The Canadian silver stock has given back 5.73 per cent year-over-year but remains up by 217.54 per cent since 2020
Dolly Varden Silver (TSXV:DV) signed a definitive agreement to acquire the Kinskuch property from Hecla Mining (NYSE:HL), quadrupling its presence in British Columbia’s Golden Triangle.
The acquisition expands Dolly Varden’s flagship Kitsault Valley project into numerous underexplored areas prospective for silver, gold and copper mineralization. These include:
- Claims to the southwest that trend to within 7 km of Goliath Resources’ recent Surebet gold discovery.
- An area south of the Big Bulk project with the potential to host additional gold-copper porphyry systems on trend with the Kitsault molybdenum porphyry deposit being advanced by Newmoly.
Consideration of $5 million will be paid through 1,351,963 DV shares, with Hecla retaining a 2 per cent net smelter return royalty, half of which Dolly Varden can buy back for $5 million at any time.
According to Monday’s news release, Hecla Mining currently owns about 13.3 per cent of Dolly Varden’s outstanding common shares and will maintain a position on the junior miner’s technical committee to help to unlock value from Kinskuch.
Leadership insights
“Consolidating Dolly Varden’s Kitsault Valley project with our major shareholder Hecla’s large and underexplored claims covering prospective Hazelton Group rocks will allow for more efficient exploration and enable us to unlock value on our path to be a premier precious metals company,” Shawn Khunkhun, president and chief executive officer of Dolly Varden Silver, said in a statement. “Additionally, we welcome Hecla’s increased share ownership in our company.”
“We will be using our structural and lithological framework model developed at the Kitsault Valley trend that has led our team to significant discoveries, such as the Wolf vein, and applying it to exploration of the Illiance trend. Hecla was successful in identifying a subparallel trend of silver-rich mineralization, located to the east of our significant silver and gold deposits,” added Rob van Egmond, Dolly Varden’s vice president of exploration.
About Dolly Varden Silver
Dolly Varden is a junior miner advancing its Kitsault Valley gold and silver project in British Columbia. The project, on trend with the high-grade Eskay Creek and Brucejack deposits, is estimated to contain over 32.9 million ounces of silver equivalent indicated and 11.4 million ounces inferred, representing over US$1.4 billion in the ground.
The Canadian silver stock (TSXV:DV) opened with a again of 2.84 per cent trading at C$3.62. The stock has given back 5.73 per cent year-over-year but remains up by 217.54 per cent since 2020.
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