Dolly Varden Silver Shines with Both Silver and Gold

Source: Bob Moriarty 03/04/2025

Bob Moriarty of 321gold.com shares his thoughts Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX).

Astute market watchers have surely noticed that just as I forecasted, the cryptocurrencies and broader stock market have formed rolling peaks and are now plummeting rapidly. BTC has dropped 27% from its pinnacle. Many of the other 15,000 digital collectibles have fallen even further. For anyone who genuinely believes Bitcoin qualifies as actual currency, remember that a fundamental characteristic of money is functioning as a reliable store of value.

A fortnight ago, XRP plunged 30% in one session only to surge 31% the following day. During this 48-hour rollercoaster, 750,000 cryptocurrency speculators had their positions liquidated. Half were optimistic leveraged buyers. They got hammered on Monday. The other half were pessimistic short sellers. They got destroyed on Tuesday. This pattern has occurred previously and will inevitably repeat.

A dependable store of value? Hardly.

Simultaneously, after eight consecutive weeks of gold reaching unprecedented heights, we’ve finally entered a correction phase. Don’t misunderstand me; I’m not a perpetual optimist, nor do I venerate gold blindly. It fluctuates naturally. If eight weeks represents a record advancement, a pullback seems appropriate. I don’t anticipate it lasting extensively or dropping substantially. The peak sentiment reading for either silver or gold measured by DSI only reached 88 for each metal. That’s insufficient to signal a true market top. In April 2011, Silver’s DSI soared to 96.

The precious metals will retreat temporarily before climbing higher. I believe many of the inflated bubbles floating around have encountered the sharp objects they were inevitably destined to meet.

The particularly encouraging news is that in terms of comparative value, gold and silver mining stocks are the most undervalued relative to their underlying metals than they’ve ever been. Gradually, but inevitably, former equity investors and cryptocurrency enthusiasts will realize they’ve been duped once again. It’s time to survey the landscape for bargains.

Natural resource shares across all sectors are undervalued. This discount won’t persist indefinitely. They represent the sole viable investment opportunity currently.

Precisely five years ago, I introduced a new silver advertiser called Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX). Their shares traded at $0.295, and the entire company could be acquired for under CA$25. Approximately a year ago, I published another follow-up analysis. By then, the shares had ascended to $0.73, and the market capitalization expanded to $198 million following the acquisition of the Fury gold project. A year later, Dolly Varden’s market value grew by another 50% to $300 million, with shares trading at $0.95.

Most silver production occurs as a secondary output from copper, lead, and zinc mining operations. Pure silver projects are uncommon. With the 2021 addition of the Homestake Ridge project from Fury, Dolly incorporated a substantial gold asset situated immediately adjacent to their primary holdings. Dolly compensated Fury $39 million through cash and equity for Homestake Ridge.

During 2024, Dolly completed approximately 32,000 meters of diamond core drilling divided equally between Homestake Ridge and various Dolly Varden properties.

Laboratory results from 2024 revealed 977 grams per tonne silver (g/t Ag) across 5 meters at the Moose Vein alongside 206 g/t spanning 23 meters at the Chance Vein. Additionally, at the Wolf structure, samples yielded 1,091 g/t Ag with 1.35% Pb and 1.40% Zn over 9.38 meters. A 15.02-meter section graded 2.54 g/t Ag with 0.86% Pb (lead) and 1.34% Zn (zinc).

When dealing with complex multi-element drill results, it’s beneficial to consolidate the various economic minerals into either silver equivalent or gold equivalent figures to provide meaningful context for investors. Using AgEq calculations, Dolly Varden possesses approximately 137 million equivalent ounces of silver or, utilizing AuEq measurements, 1.836 million gold equivalent ounces.

Dolly Varden maintains a strong financial position heading into 2025 with $32 million in reserves. The company’s ownership structure is extremely concentrated, with 52% of shares controlled by institutions. Fury maintains roughly 15% ownership, Hecla holds 12%, and Eric Sprott commands an additional 10%. The available float accessible to ordinary investors is below 8%, establishing an effective price support while preserving unlimited appreciation potential when market participants recognize the scarcity of primary silver producers.

“Dolly Varden” represents the Canadian term for silver. While not as inexpensive as previously, it remains more affordable than its future valuation.

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Important Disclosures:

1. Dolly Varden Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Dolly Varden Silver Corp.
3. Bob Moriarty: I, or members of my immediate household or family, own securities of: Dolly Varden Silver Corp. My company has a financial relationship with: Dolly Varden Silver Corp. Idetermined which companies would be included in this article based on my research and understanding of the sector.
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( Companies Mentioned: DV:TSX.V; DOLLF:OTCQX, )

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