Dolly Varden Silver (TSX-V: DV)(OTC: DOLLF) CEO Shawn Khunkhun on Hitting More High-Grade Silver on Aggressive Step-Outs in British Columbia’s Golden Triangle


Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president & CEO of Dolly Varden Silver — Mr. Shawn Khunkhun. Shawn, congrats are in order. How are you, sir?

Shawn Khunkhun: I'm feeling pretty good, Gerardo. I'm feeling really good on the back of these numbers.

Gerardo Del Real: Well, let's get right into it. The last time you and I spoke, I referenced a line in the press release that mentioned that you would have what you felt would be significant assay results to a report imminently. Today, we got those numbers… and let me just provide the context:

You hit 1,049 grams per tonne (g/t) silver over 3.6 meters in a 200-meter down plunge step-out. You also hit 1,646 g/t silver over 2.15 meters in a 400-meter down dip test at Wolf. That last line is important. 

Where this mineralization was encountered is a big deal. I'll let you provide the context, Shawn.

Shawn Khunkhun: Yeah, I think it's important because a lot of your audience, you see numbers, and I think we need to give some context here. So let's go high level.

We've got a really unique opportunity in Dolly. We've already identified 63 million ounces of silver in all categories and a million ounces of gold. So we've got 140 million ounces silver-equivalent (AgEq) at grade in a safe location. So Dolly Varden already is a premier silver company. If you think of silver, you've got to think of Dolly.

And what's happened this year is we've stepped outside of those deposits and we are adding ounces. And so this is a deposit called Wolf. It's a kilometer and a half away from the biggest silver deposit on the property, Torbrit. 

And not only do I think there's a relationship there and we can show that the two systems are coming together, we're also just specifically stepping out here. And really, if you look at the deep hole, it's a 750-meter extension of the Wolf deposit.

We've tripled the strike length, and the results that we had 207 meters away were out of this world: 4,300 grams over a meter and a half, which was a part of a broader interval, which was 20 meters of over 584 grams of silver. 

And this thing's open. I've got a hole that's 63 meters away that's coming. I've got holes that are coming on the other side of the deposit, on the opposite side plunge, that are coming that I have a lot of confidence in. I've got 50 drill holes to report still. I've got all the Homestake drilling to come out with. 

And I'm looking specifically at the market and where the shares are trading and you start doing the numbers. The best-in-class peers… this is your First Majestics, your Pan Americans, your so on… they're down 25% over the last 12 months. So our peers are down. You look at the GDXJ… best-in-class junior golds are down the same tune — they're down 25%.

Where's Dolly? Dolly's up about 5% on the year; 5%-10% on the year. So we're outperforming the peers and the best-in-class peers by 35%. But more importantly, the stock, it's above the big moving day averages, the 50-day moving average, it's coming up to the 200-day moving average.

Gerardo, we go up another nickel a share, this thing's broken out and we're on our way. And I keep going back to this is a business where, when your winners are running, you let your winners run — you push them, you push the bet, right?

And I just think that right now we could be in an absolute breakout because this is a business where it's very binary. You have something that's working or you have something that's not. This is something that's working and will be very valuable. We've got more results coming. So this is a very special company. We've got money in the bank.

We've got 90% of the stock held by just an A-class of shareholders; 45% is held by three shareholders; two are publicly-traded mining companies; one is a billionaire investor, Eric Sprott, and then another 45% is held by some of the biggest and best institutions. 

Yet, 90% in the hands of very, very smart money, which leaves about, call it, 20 million shares in the hands of the public, which dictate where the price is set. And today, they're setting the price 7% higher than where it was before these results.

Gerardo Del Real: You're adding a lot of value in the face of what, for the most part, is a very challenging speculative environment. Congrats again… world class hit, world class results. This deposit is shaping up, these deposits, I should say, let me correct myself, are shaping up to be an obvious, obvious takeout candidate.

We talked about it a bit last time, Shawn. I won't rehash that conversation but I suspect that you and I will be chatting again soon given the fact that you have a lot more assays to report.

Shawn Khunkhun: Listen, I was watching a boxing movie called The Fighter… 

Gerardo Del Real: Great movie!

Shawn Khunkhun: Christian Bale and Mark Wahlberg. And there was a fighting strategy where it’s, ‘body shot - head shot - body shot - head shot.’ And so this is the body shot, okay? These results are the body shot. We've got the Homestake results coming, which I think will be the knockout punch. 

So yes, you're absolutely right… more results coming. We’re having a lot of fun making these discoveries. We're having a lot of fun telling the story. We're going all over the world. We just got back from Zurich. We're heading off to New York, Toronto, next week. We are not stopping, and the results are going to keep coming.

Gerardo Del Real: Love to hear it! Shawn, let's chat soon. Thank you.

Shawn Khunkhun: Thank you.

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