Dolly Varden Silver: Valuation and Potential Analysis

Key Metrics:

Resource Estimate:
- Dolly Varden: 50M oz silver (300 gpt).
- Homestake Ridge: 1M oz gold (4.5 gpt) + 20M oz silver.
- Total Resource: ~200M oz AGEQ (gold-silver equivalent).
Land Package: 40,000 acres in British Columbia with 12 deposit areas, including:
- Homestake Silver, South Reef, Wolf, Torbit, North Star, Dilly-Rambler, Ace Galena, Chance, Red Point, and Kitsol.
Drilling Program:
- 30,000 meters drilled in 2024.
- $25M cash for 2025 exploration.
Ownership:
- Insiders own ~40% (Eric Sprott 10%, Hecla 12%, Fury Gold 15%).
Challenges:
- Located in northern British Columbia with higher infrastructure costs.
Development Plans: Likely to de-risk the project through PEA/PFS and then sell or JV.

Valuation Scenarios:

Base Case ($25 Silver):
- In-ground valuation: $2-$3/oz AGEQ.
- Resource value: 200M x $2.5 = $500M.
- Stock price (250M shares): $500M / 250M = $2.00/share.
Upside Case ($50 Silver):
- In-ground valuation: $7-$10/oz AGEQ.
- Resource value: 200M x $8.5 = $1.7B.
- Stock price: $1.7B / 250M = $6.80/share.
High-End Case ($100 Silver):
- In-ground valuation: $20-$30/oz AGEQ.
- Resource value: 200M x $25 = $5B.
- Stock price: $5B / 250M = $20.00/share.

Investment Thesis:

Significant exploration upside with potential to expand resources.
De-risking through PEA/PFS could drive higher valuations.
Insiders (Eric Sprott, Fury Gold) reduce the likelihood of a low-premium takeover.
Strong leverage to rising silver prices.

Risks:

Conclusion: Dolly Varden offers significant upside with rising silver prices:

It’s a speculative but promising long-term investment for silver bulls.

Silver at $100/oz