VANCOUVER, BRITISH COLUMBIA–(Marketwired – June 14, 2013) –Dolly Varden Silver Corp. (TSX VENTURE:DV)(OTCBB:DOLLF) (“Dolly Varden” or the “Company”)is pleased to announce that crews have been mobilized and are working on site to prepare for the 2013 surface drill program at the Dolly Varden Property, located 26km by road from the tidewater at the village of Alice Arm, British Columbia. The drill program is expected to commence near the end of June and operate through the months of July and August.
This year’s program is being funded by the recent $4.5 million equity financing and the ongoing participation from Hecla Mining, our strategic investor, who elected to maintain its 19.9% equity interest in Dolly Varden Mining.
The goal of our drill program is to 1) start to confirm historic resources, which total 14.5 million oz silver at approximately 10oz/ton(1); 2) find new silver resources at the existing deposits; and 3) identify an extensive silver and gold rich target, located just northwest of the Torbrit deposit which is thought to be associated with the Red Point zone, which is geologically analogous to Eskay Creek.
The 2013 program is leveraging the significant work accomplished over the past two years, which includes over 6,300 meters of diamond drilling, VTEM, and ZTEM airborne geophysical surveys, and the extensive surface and underground mapping and sampling. In 2012, underground mapping, sampling and surveying began on the 1025 foot level at the Torbrit deposit, part of the 7km of usable underground workings & tunnels. This has proven invaluable for increasing our understanding of the local controls to the high grade silver mineralization as well as the structural and stratigraphic setting of the deposits. This data combined with the extensive historic exploration, drilling and mining information has given the geological team, led by Paul McGuigan, P.Geo, a strong understanding of the VMS system’s relation to the existing silver deposits.
The geological interpretation indicates that the volcanic unit that hosts the historical Torbrit mine forms an extensive sheet, that can be traced on strike from the Dolly Varden target, through the North Star target to the Torbrit target over a strike distance of 1,500 meters. The model indicates that this unit continues to the northwest through Musketeer and further on under the Red point area. Drilling northwest, towards Red Point, is expected to provide an increasing likelihood of discovering Eskay Creek-type mineralization.
The Red Point area is interpreted to represent a large alteration – feeder system similar to the feeder system associated with the Eskay Creek precious metal rich VMS deposit, but on a much larger scale. The extent of the alteration at Red Point appears to be at least 10x as large as the alteration zone at Eskay Creek, indicating potentially a massive and long-lived VMS feeder zone.
The 2013 program will begin to systematically drill to follow the horizon from Torbrit towards Red Point. Torbrit is the launching pad for the step out drill program that will march toward the source/feeder system believed to be at Red Point. Mineralization is expected to be continuous but variable along the Torbrit horizon towards Red Point. Grades, widths and other structural information can now only be determined by drilling.
2012 Sampling Results
The following summary of the sampling results from the 2012 program indicates an increase in the silver volume contained around Torbrit. This provides additional geological support for the unified view of the entire Dolly Varden system.
(oz/ short ton)
|10 – E – 6: North Wall||10E6 Weighted Average 1||56.5||266.5||7.77||0.51||0.24|
|10 – 1 – A:West Wall||101A Weighted Average 1||1.8||327.5||9.55||0.17||0.03|
|10 – 1 – A:East Wall||101A Weighted Average 2||3.9||359.9||10.50||0.21||0.04|
|10 – 1 – F: South Wall||101F Weighted Average 1||3.8||718.0||20.94||0.77||0.21|
|10 – 1 – F: North Wall||101F Weighted Average 2||12.6||310.5||9.06||1.91||0.16|
|10 – 1 – F: North West Wall||101F Weighted Average 3||77.6||246.8||7.20||0.84||0.06|
|10 – 1 – F: North East Wall||101F Weighted Average 4||68.55||237.3||6.92||0.79||0.03|
|10 – 1 – F: West Wall||101F Weighted Average 5||22.2||220.0||6.42||0.29||0.05|
* Lengths are sampled length along drift wall and stopes and do not represent true thicknesses
“Weighted Average” is a length-weighted average of abutting horizontal chip samples taken at 1m height from drift floor.
John King Burns, Chairman, comments that, “2012’s silver sampling, drilling and surveying data, combined with the geophysics and other geochemical and structural data allowed our team to create the conceptual, unified geological model of the target and to identify two potentially continuous, massive, and variously mineralized horizons. The second horizon has been identified by our drilling in 2011, and is associated with the Wolf deposit, located higher in the stratigraphy. This identification was only possible as a result of our comprehensive work that formed a strong understanding of the geology and the structural setting. In the last two years our dedicated team has been able to define Torbrit as a target with an expandable resource and as the “launching pad” from which we can verify and develop Torbrit’s silver resources and begin to systematically attack the VMS feeder at Red Point. At Red Point we hope to drill indicate an Eskay Creek size and type prize. Our drilling model allows us to define the silver mineralization as we work north through the Torbrit target to identify the VMS feeder zone which has indications of adding high grade lead, zinc, silver, copper and gold. Gentlemen Start your Drills.”
The Company’s common shares are listed and traded on the TSX-V under the symbol DV and in the U.S. under the symbol DOLLF.
The scientific and technical information in this release has been reviewed and approved by Ron Nichols, P.Eng., President and CEO, a Qualified Person under the terms of National Instrument 43-101. The Company has prepared a NI 43-101 compliant technical report for the Dolly Varden Property, entitled “Technical Report Geology and Mineral Exploration of the Dolly Varden Property, British Columbia, Canada,” dated September 5, 2011, as revised. Information with respect to the 2012 sampling results, including without limitation the location, azimuth, and dip of the drill holes, can be found in the Company’s press release dated February 8, 2013, entitled “Significant Silver Grades Intersected During Surface and Underground Exploration at the Torbrit and Dolly Varden Mines”. Each of the technical report and press release are available under the Company’s SEDAR profile at www.sedar.com.
Certain of the statements and information in this press release constitute “forward-looking statements” or “forward-looking information” Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “believes”, “plans”, “estimates”, “intends”, “targets”, “goals”, “forecasts”, “objectives”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Forward looking statements or information relates to, among other things, the Company’s exploration plans for the Dolly Varden silver property.
Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, need for additional capital by the Company through financings, and the risk that such funds may not be raised; the speculative nature of exploration and the stages of the Company’s properties; that the Company may not confirm historical resources to a level sufficient to declaring Mineral Resources or Mineral Reserves; and that expected geological, mineral or metallurgical expectations or models may not prove to be correct. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.
The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements and information if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements and information.
(1) A Qualified Person has not done sufficient work to classify the historical estimates as current Mineral Resources and the Company is not treating such estimates as current Mineral Resources. A discussion of the material assumptions, parameters and methods relating to the historical resource estimate, as well as a discussion of relevance, reliability and other information regarding the estimate, is included in the Technical Report Geology and Mineral Exploration of the Dolly Varden Property, British Columbia, Canada, dated September 5, 2011, as revised, which is available under the Company’s SEDAR profile at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Vanguard Shareholder Solutions
Martin Gagel, MBA, CFA Vice President
604-608-0824 or 877-608-0829
Gary Lindsey Investor Relations
Dolly Varden Silver Corporation
Ron Nichols, P. Eng. CEO and President
1-778-383-3083 or Toll Free: 1-855-381-3530