VANCOUVER, Jan. 4, 2018 /CNW/ - Dolly Varden Silver
Corporation (TSX.V: DV | U.S.: DOLLF) (the "Company" or
"Dolly Varden") On behalf of
the management of Dolly Varden Silver Corp. ("Dolly Varden"), it is
my great pleasure to provide a summary to our shareholders of the
events of 2017 and provide an outlook of what may lie ahead in
2018.
The Belcarra Group assumed control of the management of
Dolly Varden in December 2016 at the request of members of the
board of directors and several of our large and institutional
shareholders. The objective was to bring stability to the
corporation by allowing our experienced technical team led by
Ben Whiting, Vice President
Exploration and Rob Van Egmond,
Chief Geologist as the project manager to begin to unlock value in
the project.
We completed a thorough and comprehensive review of all
historical data and workings, organized our exploration team and
designed the work program for 2017. We wanted to commence drilling
as early as possible (weather permitting). Exploration camp
construction and site preparation began in May, diamond drilling
quickly ensued in June, and we were the first company to begin
drilling in the Golden Triangle this season.
The initial program was designed for 5,000 meters of drilling
with a budget of $3.5 million ("MM").
This was quickly expanded to $6.5 MM
with the program running through to October. In total we completed
15,728 metres of drilling totalling $4.8 MM with the cost per metre coming in well
under budget.
The team in Alice Arm had an
incredibly successful drill campaign resulting in FOUR new
discoveries which have changed the outlook for the future of
Dolly Varden in a very positive way.
These discoveries will be followed up with 2018 drilling which
should start to delineate the size potential of these exciting new
targets. Ben Whiting, VP
Exploration, is preparing a much more comprehensive news release
which will discuss these results in detail.
The project has a 2015 NI 43-101 compliant resource (Indicated,
3.07 million tonnes @ 322 g/t Ag for 31.8 million ounces silver;
Inferred, 0.90 million tonnes @ 373 g/t Ag for 10.8 million ounces
silver). With the addition of the four new discoveries, we can show
that the potential is now there to add enough ounces to attract
even the largest silver producers. The Company has signed a number
of confidentiality agreements as part of its preliminary
discussions with several producers.
Financially, Dolly Varden is
healthy with over $6.6 MM in the
treasury and no debt. During the year 2017, we completed two equity
private placements including flow through shares raising over
$7.7 MM. At the end of September, the
Company had a minimum of $2.1MM of
flow-through exploration budget still to be spent in 2018.
Our shareholder base remains very supportive with over 50% held
institutionally and with a major mining company owning 12%.
One of Dolly Varden's key
attributes is its great infrastructure and location, amongst the
best in BC's Golden Triangle. The camp is located in Alice Arm which is on tidewater, allowing all
our fuel and supplies to be brought in by barge and unloaded steps
from camp. Power is nearby with the possibility of new
hydroelectric power being developed on site.
Community Relations is a major priority for Dolly Varden and as such we are in communication
with the Nisga'a Nation who have been very supportive of the
project. The Kitsault region has a rich history of mining going
back to 1919. We would like nothing better than to see Dolly Varden regain its past glory with the
advent of another new mine(s).
In conclusion, the future of Dolly
Varden looks very bright. In addition to bringing stability
to the Company, we have completed a large and successful
exploration program which has seen us make four new discoveries,
illustrating the possibility of significant resource expansion. We
look forward to 2018 as we continue to work diligently in our
efforts to unlock future shareholder value.
I would like to thank the shareholders for their support and
wish everyone and their families healthy and Happy New Year and a
very prosperous 2018.
Thank you,
Gary Cope
President and CEO
Dolly Varden Silver Corporation
Technical Information and Qualified Persons
Ben Whiting, P.Geo., Vice
President of Exploration serves as a 'Qualified Person' under
National Instrument 43-101, and has 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.
Additional information about the Company and its activities may
be found on the Company's website www.dollyvardensilver.com and
under the Company's profile at www.sedar.com.
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".
FORWARD-LOOKING STATEMENTS:
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 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, thus have not demonstrated economic
viability.
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.
SOURCE Dolly Varden Silver Corp.