Categories: Precious Metals
Topics: General Precious Metals

Dolly Varden Silver (TSX-V: DV)(OTC: DOLLF) CEO Shawn Khunkhun on Cashed up, Drilling, and Hitting High Grade Gold and Silver on a District Scale

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO of Dolly Varden Silver, one of my favorite silver plays with a great gold kicker and growing discovery to go with it. I'm speaking of course of Mr. Shawn Khunkhun from Dolly Varden Silver. How are you today, sir?

Shawn Khunkhun: So I'm doing well. So Gerardo, one of your favorite silver plays? It's not the favorite.

Gerardo Del Real: It's top two, Shawn. It's top two, let's put it that way. Well it's great to have you back on. Let's talk a bit about why it's one of my two favorite silver plays. You just hit 12.23 grams per tonne gold and 84 grams per tonne silver over 34.93 meters, 29.24 grams per tonne gold and 16.94 grams per tonne silver over 13.94 meters at the Homestake silver deposit. You have to be pleased with the continuity and the scale that you've been able to prove up thus far.

Shawn Khunkhun: You took the words right out of my mouth. It's all about continuity. It is all about scale. I'm starting to get a lot of confidence in Torbrit and Wolf potentially being both mineable and that's how I'm starting to feel about Homestake Silver and Homestake Main. We've been spoiled at Dolly for the last four years now. I thought one year was lucky. Two years a fluke. You do it three and four years in a row. If this was a football team we would start talking about dynasty. This is a project of merit in a neighborhood that's hosted Eskay, Brucejack, Premier. These results to me look like Brucejack South and plus you've got the big silver kick just south of this that we keep expanding and it looks like it's just opening up at Wolf as we get deeper. It's starting to really swell and get high grade.

But no, these results and today's a day that we just celebrate the Homestake. That resource up at Homestake, which a good chunk of it is in the inferred. The average grade in the inferred is five grams. The average grade in the indicated is about seven and a half. Well Gerardo, these results are closer to one ounce per tonne, closer to 30 grams per tonne over width, right? And what's crazy is there's a broader envelope, mineralized envelope, in the two holes that we highlighted. In one of them you've got almost 50 meters of nine grams of gold, 50 meters of nine grams, and then the other one's 100 meters of four and a half grams. So getting that 400 gram meter type number is something that is consistently happening with the drilling that we're doing up at Homestake.

Gerardo Del Real: Well it's got to be encouraging to see silver slowly but surely finally starting to make a move solidly north, right. We were fighting that $32 level for it seemed like an eternity. Finally broke through that convincingly. Now it looks like the next technical level to surpass is going to be the $34 level and I believe if we do that we're off to $38 and $40 really, really quickly. We chatted a bit off-air. How are you feeling about the silver and the precious metal space in general?

Shawn Khunkhun: Very good. I had a guy in my office about an hour ago. He's from Perth, Australia. And he was telling me about a silver deal I never heard of that just raised $70 million last night. And there is such demand for silver coming from multiple sources. It's really, really, really encouraging. The world wants silver and mine supply is falling. So I think the setup we have here for silver has never been better.

Gerardo Del Real: I couldn't agree with you more. What comes next, Shawn? You're cashed up. You are again one of the premier silver plays in the space. You're in a great jurisdiction. You have a favorable market. What comes next?

Shawn Khunkhun: That's a good question. We've got $35 million in the bank. We have a number of drill results that are pending from regional exploration we've done property wide to try to show that we're just scratching the surface and there's a lot more discoveries to be made. We've got results pending from Wolf. We've got more results pending from Homestake. We've got a big program that we'll be detailing the plans for 2025. There's a lot happening at Dolly Varden, a lot to be excited about. And then you start factoring in the way we evaluate the ounces we do have is no longer multiplying them by $12 or $13 silver or $1,200 or $1,300 gold. So the economics of the project have become a lot more robust in this new price environment. So we in this resource sector for the last decade have spent a lot of time in the bear market, which now we got the wind at our back and then a project like this where we're finding more and more.

So what we've got, Gerardo, is we're cashed up, fully financed, don't need to raise money until 2026, but having said that, we're not going to be limping into 2025. We've got a $20 million exploration program that we're planning. So we're going to hit it hard. Plus we still have a lot of results to get out from the 2024 program. So it's such a wonderful way to close towards the end of the year and exciting. This is a huge week. We've got the election tomorrow. We've got the Fed coming out. We've got China putting out plans on their stimulus. So it's a very important week. And on the back of that, we've had some of the best results we've ever come out with up at Homestake.

Gerardo Del Real: Couldn't be more excited going into 2025. We've been waiting for a very long time to have the market that's developed now. Should be a fun and profitable end of the year and an absolute blast of 2025. Shawn, thank you so much. It's always a pleasure to have you on, sir.

Shawn Khunkhun: Thank you sir. All the best.

Gerardo Del Real: All right.

Shawn Khunkhun: Talk to you soon.

Gerardo Del Real: Chat soon now. Cheers.

Shawn Khunkhun: Okay. Bye-bye.

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