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| The world consumed 1.2 billion ounces of silver in 2022.
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| Importantly, demand outpaced supply by more than 250 million ounces that same year.
And while that supply gap is currently getting filled by recycled silver, it’s clear that over the long term, silver is on a path to sustained supply deficits.
But a silver bull market may be much sooner in coming, as silver has never failed to follow gold’s lead...and to provide big leverage when it does. With gold on the verge of lift-off once the Fed pivots to rate cuts, the timing for high-powered silver investments seems perfect.
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| One such company is Dolly Varden Silver (DV.V; DOLLF.OTC). Not only does it have a near-65-million-ounce silver resource at its Kitsault Valley project in British Columbia, it also boasts a near-million-ounce total gold resource as well.
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| These resources have allowed Dolly Varden to flourish in a market environment when many other companies have struggled.
More importantly, they put the company in a position to grow substantially from here, based both on a rising silver market and potential new discoveries at Kitsault Valley.
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| A Remarkable Silver-Gold Resource
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| Located in the southern corner of British Columbia’s Golden Triangle, Kitsault Valley covers a 163-square-kilometer area and encompasses two main areas of resources: Dolly Varden and Homestake Ridge.
The Dolly Varden area in the southeast corner of the project has seen 20 million ounces of silver mined over the past 100 years.
The current resource on the myriad target areas that make up Dolly Varden totals 32.9 million indicated silver ounces and 11.4 million inferred silver ounces.
The Homestake Ridge resource area provided a big boost when it was acquired in February 2022 from Fury Gold Mines. Current indicated resources at Homestake Ridge include 1.8 million ounces of silver and 166,000 ounces of gold in the indicated category, plus another 17.4 million ounces of silver and 817,000 ounces of gold in inferred resources.
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| Add it all up, and the combined resources of Dolly Varden and Homestake Ridge make Kitsault Valley one of the more exciting undeveloped primary silver mining complexes around today.
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| And as you’re about to see, it’s one that has tremendous room to grow.
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| Discovery-Driven Growth Continues
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| Dolly Varden Silver has flourished because it’s been one of the more active junior mining companies in the industry. The company conducted an impressive total of 51,527 meters of drilling at Kitsault Valley last year.
The work successfully expanded the mineralized area of the current mineral resource by focusing on the Wolf and Homestake Ridge targets.
Wolf is part of the Dolly Varden suite of deposits, and the latest drilling there has now extended the mineralization to 900 meters down-plunge. Still, the Wolf vein remains open to depth and up plunge.
Last year’s drilling also tested below the sediment cap that covers the possible connection between Wolf and the Torbrit/Kitsol zones, along with other prime exploration targets along the underexplored Kitsault Valley trend.
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| That trend extends for 15 kilometers along strike, so the potential to dramatically expand the total resource with further drilling is evident.
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| In short, this district-scale property is loaded up with targets that promise to significantly increase the Kitsault Valley’s already large silver-equivalent resource.
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| The Golden Triangle Has
Become Takeout Territory
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| That resource could make the project and Dolly Varden Silver as a whole the targets of a takeout.
The Golden Triangle where the project resides has seen more than C$5 billion in M&A activity since 2018.
The Golden Triangle is not only one of the world’s richest precious metals zones, but its location in British Columbia allows it to benefit from an established, predictable mining jurisdiction.
In a world where other silver destinations like Mexico, Peru and Argentina are proving difficult places to operate, having a large primary silver resource in British Columbia is a huge feather in Dolly Varden Silver’s cap.
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| Leverage For An Impending
Silver Bull Market
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| As mentioned, gold seems ready to being another major rally once the Fed begins its rate cuts.
Everyone knows that silver has always followed gold’s lead in a major bull run, but also provide very significant leverage to gold’s gains.
And experienced investors know that junior silver companies tend to provide further leverage on top of silver.
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| So by getting into premier silver plays at current low levels, one could stack leverage on top of leverage. The soaring prices for junior silver companies in the last big move in 2020 demonstrated how powerful this dynamic can be.
This is why investors are salivating over the potential with Dolly Varden right now.
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| The company’s extremely rare combination of a large primary silver resource and a safe mining jurisdiction...plus a major-league gold resource...put it in a position to lead the pack among silver juniors in the next run higher.
With the precipitating event of the Fed’s pivot to lowering interest rates just a few months or even weeks away, the time is now to begin doing your due diligence on Dolly Varden Silver.
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