New Discoveries in a Historic Mining Camp:

Transcription

1 New Discoveries in a Historic Mining Camp: The Dolly Varden Silver Project in the Golden Triangle of Northwestern BC TSX.V : DV OTCUS : DOLLF February 21,

2 Forward Looking Information This presentation may contain forward-looking statements that are not historical facts. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future exploration activities on Dolly Varden Silver Corporation ( Dolly Varden ) properties; success of exploration activities; permitting timelines and requirements; requirements for additional capital; environmental requirements; planned exploration and development of properties and the results thereof; planned expenditures and budgets and the execution thereof. Often, but not always, forward-looking statements can be identified by the use of words such as expects, plans, estimates, intends, believes, could, might, will, budget, scheduled, forecasts, anticipates, potential, base case or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". 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, among other things, Dolly Varden s corporate strategies, mineral resource estimates and plans for further exploration, which will require additional funding. These forward-looking statements are based on management s current expectations and beliefs (including the belief in the accuracy of the resource estimate) but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. Information in this presentation is not intended to be a comprehensive review of all matters and developments concerning Dolly Varden and Dolly Varden does not assume any obligation to update, or to publicly announce, any such statements, events ordevelopments, except asrequired by law. For additional information on risks and uncertainties, see Dolly Varden s most recently filed annual management discussion & analysis ( MD&A ), which is available on SEDAR at and on Dolly Varden s website at The risk factors identified in the MD&A are not intended to represent a complete list of factors that could affect Dolly Varden. Compliance with NI The technical information in this website (the "Technical Information") has been approved by Ben Whiting, P.Geo., V.P. of Exploration of Dolly Varden and a Qualified Person. For readers to understand the information in this presentation, they should read the technical report (available in its entirety (the "Technical Report"), including all qualifications, assumptions and exclusions that relate to the information set out in this presentation that qualifies the Technical Information. The Technical Report is intended to be read as a whole, and sections or summaries should not be read or relied upon out of context. The Technical Information in the Technical Report is subject to the assumptions and qualifications contained therein. Some of the mineral resources at the Dolly Varden Property are categorized as indicated and some as inferred mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, orinto mineral reserves, once economic considerations are applied. 2

3 Dolly Varden was the Richest Silver Mine in the British Empire In 1919 to 1921, Dolly Varden was amongst the richest silver mines in the British Empire, producing at an average grade of >1,100 g/t 3

4 Also the High-Grade Torbrit Mine In 1949 to 1959, the Torbrit Mine produced silver at a grade of 500 g/t, plus base metal credits. A large portion of the deposit is still intact. 4

5 Overview Dolly Varden Silver Corp, is exploring for high-grade silver, gold and base metals in the prolific Golden Triangle District, northwestern British Columbia, Canada. The company's flagship asset is the 100% owned Dolly Varden Project, an 8,800 hectare property, hosting a highgrade silver resource, with expansion potential and multiple regional exploration showings. The current resources as of August 2015 are Indicated Resources of 3.07 M tonnes, grading 322 g/t Ag for 31.8 million ounces silver, plus Inferred Resources of 0.90 M tonnes, grading 373 g/t Ag for 10.8 million ounces silver. (Technical Report filed on dated May 1, 2015) Property-wide exploration programs continue to test regional target concepts and known mineralized showings and deposits. Under the direction of the Belcarra Group management team as of December

6 The Belcarra Value Brought stability to the Corporation with a strong technical presence. Over 15,000 meters drilling completed on the project in new discoveries were made outside of the existing resource blocks, illustrating significant resource upside potential. Established better understanding of the nature of the deposit, paving the way for the next phase and future exploration programs. The program came in under budget and below historic costs. Maximized the ability to get the most work done on the site within the exploration season. 6

7 It Takes a Team Dolly Varden s management team, a part of the Belcarra Group, has the proven technical skills to discover & develop quality exploration projects that maximize shareholder value---the same team recognized for the discovery of Orko Silver Corp s La Preciosa Silver-Gold Deposit in Durango, Mexico, amongst other discoveries. Management Gary Cope President, CEO & Director Ben Whiting, M.Sc., P.Geo. Vice President - Exploration Carla Hartzenberg, CPA CA Chief Financial Officer Rob van Egmond, P.Geo. Chief Geologist Alex Tsakumis Vice President Corporate Development Steve Cope Senior Director Business Development Melissa Martensen Corporate Secretary Directors Darren Divine, Chairman Gary Cope, Director Annette Cusworth, Independent Director Don Birak, Independent Director Jim Sabala, Independent Director Tom Wharton, Independent Director Advisors Kurt Allen, M.Sc., Geo. Art Freeze, P.Geo. Dale Brittliffe, P.Geo. Dr. Nick Carter, P.Eng. 7

8 Share Structure and Shareholders Capital Structure Shares Outstanding 45.0 M Warrants (avg. price $0.40) 5.3 M Options (avg. price $0.71) 3.4 M Fully Diluted Shares 53.7 M Notable and Major Shareholders Institutional 60% - US Global Investors - Sprott Asset Management - Ingalls and Snyder Brokerage Accounts Hecla Canada 12% Management 4% Retail 26% Dolly Varden Silver Corp Listing TSX.V : DV Listing OTCUS : DOLLF 52 Week Hi-Lo $ $0.45 Current Price $0.76 Cash $6.0 M Ownership Institutional Corporate Retail Management 8

9 Location & Infrastructure Golden Triangle District Regional, precious & base-metal mineral belt Numerous precious metal deposits (Eskay Creek and Brucejack) 8,800 hectare wholly-owned land position (subject to 2% NSR) 25km from deep tide-water port & 30km from power grid Historic road access Hydro project located on property Four known deposits on Dolly Varden >20 million ounces of past high-grade silver production (in 1920 s & 1950 s) >7 km of underground workings 9

10 The 2017 Exploration Program The main focus was diamond drilling, with 20% in resource validation and 80% in exploration beyond the known mineral deposits. 45 diamond drill holes totaling 15,728 metres. Numbering of holes started with DV to continue the numbering pattern sequence from recent years. Original program of $3.5 million for 5,000 metres was completed ahead of schedule, then expanded to $6.5 million, allowing drilling to be conducted into October. Four new discoveries were made in 2017 outside of the resource block areas Torbrit North, Torbrit East, Moose-Lamb Fault and Beginners Luck. The first three are near the Torbrit Mine. 10

11 Plan View of the Torbrit Mine Area 11

12 The Torbrit North Discovery Located 200 m north and 220 m deeper than the Torbrit Deposit is the Torbrit North discovery. Torbrit North is a DVTH exhalative style mineralized horizon. DV yielded m (21.37 m true) grading Ag 433 g/t, Pb 0.74% and Zn 0.22% for Ag-Eq of 476 g/t. 12

13 The Torbrit East Discovery Located 100 m east and 60 m higher than the Torbrit Deposit is the Torbrit East discovery. Torbrit East is a DVTH exhalative style mineralized horizon as a faultblock offset. DV17-076, 077 and 078 all hit in Torbrit East. DV yielded: Upper-TE 5.0 m (3.83 m true width) grading Ag 482 g/t, Pb 0.21% and Zn 0.12% for Ag-Eq of 497 g/t. Lower TE 8.35 m (6.40 true width) grading Ag 122 g/t, Pb 1.79% and Zn 2.33% for Ag-Eq of 320 g/t. 13

14 The Moose-Lamb Fault Discovery Located 180 m north and 50 m below the Torbrit Deposit is the Moose-Lamb Fault discovery. Moose-Lamb Fault is a steeply dipping, epithermal vein style mineralized structure. DV yielded 4.00 m (2.57 m true) grading Ag 988 g/t, Pb 5.90% and Zn 0.90% for Ag-Eq of 1,284 g/t. 14

15 Drill Hole DV

16 Torbrit Mine vs Torbrit North 16

17 Torbrit Size Deposit Targets The Torbrit Deposit was in production from 1949 to 1959 and yielded 18.7 million ounces of silver from 1.25 million tonnes at a grade of 500 g/t. It also produced lead from ore grading 0.46%, with recoveries of 85%. The current 2015 resource for the Torbrit Deposit stands at Indicated 15.5 million ounces of silver in 1.91 million tonnes grading g/t and Inferred 10.2 million ounces of silver in 0.85 million tonnes grading 373 g/t. (Lead grade was not estimated). For scope of the Torbrit Size Deposit, the sum of the past-production and current resources equals 44.4 million ounces of silver in 4.01 million tonnes grading 344 g/t. The Torbrit Deposit is still open to the southeast. Hole DV yielded two mineralized intercepts. The Lower Zone core length of m (9.89 m true) grading Ag g/t, Pb 0.09 % and Zn 0.04 % for a silverequivalent of g/t. 17

18 Dolly Varden Size Deposit Targets The Dolly Varden Mine was in production from 1919 to 1921 and yielded direct ship ore for 1.3 million ounces of silver from 33.2 thousand tonnes at a grade of 1,109 g/t. The current 2015 resource for the Dolly Varden Deposit stands at Indicated 10.5 million ounces of silver in million tonnes grading 625 g/t and Inferred 0.54 million ounces of silver in 38.6 thousand tonnes grading 434 g/t. (Lead grade was not estimated). For scope of the Dolly Varden Size Deposit, the sum of the past-production and current resources equals 12.3 million ounces of silver in 0.59 million tonnes grading 646 g/t. The Dolly Varden Deposit has significant base metal values. Hole DV yielded three mineralized intercepts. The Upper Zone core length of 9.60 m (8.90 m true) grading Ag g/t, Pb 0.42 % and Zn 1.19 % for a silverequivalent of g/t. 18

19 Exploration Regional Exploration Kitsol epithermal vein: 25.95m grading 712 g/t Ag Ace-Galena VMS horizon: 3.25m grading 406 g/t Ag (within 65.5m grading 60 g/t Ag) Ace Galena epithermal vein: 3.15m grading 591 g/t Ag. Lithologies and alteration assemblage of the Ace-Galena Trend comparable to those in known deposits on the property. Surface strike of alteration extends over 18 km, with only 10% having been tested. Torbrit-style mineralization discovered north of the Torbrit Mine. The Gold Belt alteration and geochemistry trend aligns with the Homestake Ridge of Auryn Resources. 19

20 Big Bulk Cu-Au Prospect The Big Bulk Copper-Gold Prospect, is located 10 km to the southeast along the south shore of Kinskuch Lake. Big Bulk consists of 7 mineral claims for 2,640 hectares. It is surrounded by the very large Kinskuch Project of Hecla Mining Limited. Big Bulk is in alkali porphyritic rocks of the Hazelton Group, with altered quartz monzonite intrusives. Analogues for Big Bulk are the Sulphurets, KSM (Seabridge) and Red Mountain (IDM Mining) deposits. Intermittent exploration programs have taken place over several decades. Short historic drilling programs have been conducted. Hole AGA-01 yielded 0.31 % Cu over 54 m from 67 to 121 m, plus 4.0 g/t Au over 10 m from 427 to 437 m. An airborne geophysical survey has been flown in 2017 by Geotech. 20

21 The 2018 Exploration Program A plan is being considered for a >15,000 metres drilling program for the 2018 exploration season. The main focus for diamond drilling will be the reverse of the previous year, with 80% in the new targets resource expansion (Torbrit North, Torbrit East and Moose-Lamb) and 20% in exploration target confirmation. Metallurgical testing is proposed in order to validate historical mine production yield. Ongoing community relations will continue, including meetings with the First Nation Nisga a Lisims Government. A budget of $CA 6 million is anticipated for the 40 to 50 drill holes program in

22 Community Relations The Nisga a have the only formal treaty in BC signed with the Government of Canada Meetings have commenced with the First Nation Nisga a Lisims Government and their business representatives to insure local employment involvement in the Dolly Varden projects. 22

23 Conclusions: Stock is Undervalued Project has High-Grade Silver Located in a Favourable Jurisdiction Excellent Target Potential Experienced Management Team We are ready! 23

24 Category Deposit Tonnes Silver (g/t Ag) Silver oz (contained) Torbrit 1,913, ,460,000 INDICATED Dolly Varden 522, ,490,000 Wolf 402, ,834,000 North Star 236, ,994,000 Total 3,073, ,778,000 Torbrit 845, ,140,000 INFERRED Dolly Varden 38, ,000 Wolf 9, ,000 North Star 4, ,000 Total 898, ,784, Effective August 27, 2015 by Giroux Consultants Ltd grams of silver per tonne (g/t Ag) cutoff grade 3. Mineral resources that are not mineral reserves have not demonstrated economic viability. Please refer to the company s updated Technical report filed on for further details. 24

25 Current Mineral Resource Estimate Room to Grow Zinc and lead contents, known to exist in the deposits, were not included in the mineral resource estimate due to sparsity of lead and zinc assay data (not assayed in pre-2011 drill holes). Specific gravity (SG) data was also very conservatively modeled due to sparsity of data. Known presence of barite and sulfides will likely result in higher SG of rock, resulting in greater tonnage. Significant volumes of historic (non-compliant) resource estimate were not included in the current estimate due to lack of modern data. Further drilling will allow adding this material to future resource estimates. Deposits are open along strike and down dip in some areas. Please refer to the Company s updated Technical Report filed on for further details. The Qualified Person for this mineral resource estimate is G.H. Giroux, M.A.Sc., P.Eng., who prepared the mineral resource estimate in compliance with the standards of National Instrument Mr. Giroux is independent of the Company. 25

26 Geology Office and Core Logging 26

27 DV Glory Hole / Tor underground 27

28 Contact GARY COPE President, CEO & Director BEN WHITING, P.Geo. Vice President Exploration LEARN MORE ALEX TSAKUMIS Vice-President Corporate Development