Welcome To The Dolly Varden Silver Corporation HUB On AGORACOM
A new silver company with Eskay creek type gold-silver potential
Message: New Recommendation---acc...
New Recommendation: Dolly Varden Silver (TSXV-DV; OTC-DOLLF)
Jan. 22, 2014 Closing price -- C$0.115 Vancouver, B.C.-based Dolly Varden Silver has been public for exactly a year. It started trading following the company's successful consolidation of purchases in the northern part of British Columbia in what is known as the Dolly Varden Mines area; one which actually saw past development of four separate mines, two of which -- the Torbrit and Dolly Varden Mines -- went into production. In total, Dolly Varden owns a 94 square kilometer property which -- as is the
case with TerraX -- has several good, highly prospective
targets.
As is also the case with TXR, Dolly Varden is in a
friendly jurisdiction in our hemisphere. Further, there has
of late been renewed interest in this entire area of the
province; one which saw Barrick Gold produce some 3.6
million ounces of gold and 180 million ounces of silver at
its now-shuttered Eskay Creek Mine to the north. Also
nearby, as you know, is Seabridge Gold's near-45
million ounces of proven reserves of gold, and equally
staggering amounts of silver and copper, which continue
to be developed.
When I had the chance recently to visit with Dolly Varden's Chairman John King Burns (more on
his background in a minute) he pointed out to me that -- in contrast to Eskay Creek, where the terrain was
a bit more forbidding, together with an elevation of 3,000 feet above sea level -- the Dolly Varden
properties are less remote and at an altitude of only 1,000 feet or so. When it hopefully becomes time to
look at building/rebuilding infrastructure, milling, etc., it theoretically won't be as tall an order as is the
case to the north.
Mr. Burns explained to me that the company's goal is to ultimately "drill-indicate" an Eskay-scale
deposit on the Dolly Varden property, and plans to spend between C$5 and C$7 million in 2014 for a
"very specific" drill program in an area about two kilometers north-northwest of the old Torbrit Mine.
The eventual goal will be to build a resource on the scale of Barrick and others in the region.
When my old friend Paul Lathigee of Vancouver's Vanguard Shareholder Solutions urged me to
learn more about Dolly Varden, he stressed -- as anyone must these days -- the people involved and their
track records. Chiefly, this meant the strength in his view (and now mine) of having John King Burns as
chairman, and as one with a lengthy track record in mining finance. Among other aspects of his resume I
should have remembered, Mr. Burns was involved many years ago in the earliest days of Northern Orion
Resources (as chairman) and in Wheaton River Minerals. In that latter case, he helped fund the company
in his capacity with Barclays Metals Group. In addition, Mr. Burns has worked with the old Drexel
January 23, 2014 11 www.nationalinvestor.com
Burnham, as the C.F.O. and Vice President of its commodities arm. Suffice it to say, he is well-connected
and -- with his resume -- well-suited to get Dolly Varden's story in front of the right people.
Large silver (primarily) producer Hecla Mining (NYSE-HL) owns 19.4% of Dolly Varden. Presently, it appears as though Hecla will be contributing further capital as the company seeks to maintain its proportional interest when DV raises the funds for its planned drilling program. At least two institutional investors from the east coast are also purported to be ready, once the company has finished its work in specifically defining the parameters of the planned drilling of that target area near the Torbrit Mine. By some indications, DV's shares declined on and off through 2013 (though by less than many such companies) because some of its shareholders after it went public got impatient when the company did not storm out of the gates, raise a bunch of money right away and do more than it did. But a couple of us who visited about that the other day felt that they will quickly regret their impatience if and when (as is expected) the company comes out shortly with news both of its added sizeable funding by Hecla and these others, together with specifics about the nature of what the program entails. Here again, no matter how good the management and opportunity, this is the kind of a company
you don't put your grocery money in. However, it's one you should buy at least some of. As with TXR
you have 1. some large, serious investors who have taken positions and are continuing to do so, 2. the
potential for massive, district-scale properties to be developed, and 3. experienced management with
"skin in the game" that is willing to forego immediate benefits for itself and run the company on a tight
budget. I encourage you to learn more about Dolly Varden at its web site, www.dollyvardensilver.com.
Dolly Varden is initiated as an "Accumulate" among our recommended speculative-rated
stocks. __________________________________________ http://goldeditor.com/wp-content/uploads/editorpdfsimages/Dancing-Again-on-Golds-Seeming-Grave1.pdf
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