Dolly Varden Silver Corp. (TSX: V.DV, Stock Forum) tabled results this week from its Dolly Varden property south of Stewart, British Columbia.
The Vancouver-based junior is exploring on ground that contains two former mines – the Dolly Varden and Torbit – that were significant silver producers until 1959.
Since September and November 2011, exploration crews completed 4,600 metres of drilling in 21 holes. The goal has been to confirm and seek extensions of another former silver mine – the Wolf deposit -- that shares the same geological characteristics as the infamous Eskay Creek deposit that lies about 120 kilometres to the northwest.
Drilling mostly focused on the westerly and downdip extensions of the Wolf No. 2 deposit, beyond the area of historic mineral resource estimates, as reported in the most recent NI 43-101-compliant report.
The company said analytical results have been received and check assays performed for all drilling. Highlights include an intersection from 86.17 metres to 105.82 metres, representing a 19.65-metre core length which graded 388 grams per tonne (11.31 oz per tonne) silver.
That interval includes an intersection from 86.17 to 90.38 metres, representing a core length of 4.21 metres, grading 1313 grams per tonne (38.30 ounces per tonne) silver.
The true thicknesses of these core lengths are not known, the company said.
“The 2011 drilling was focused mainly on extending drill coverage below the known historical resource blocks, and have the potential to add significantly to the total silver resource at the Wolf,’’ said Dolly Varden President and CEO Ron Nichols.
“We intend on compiling our recent results with the historic information as a first step towards commissioning an NI 43-101 resource estimate for the Wolf deposit,” he said.
Dolly Varden shares fell 6.25% to 30 cents on February 20, 2012, giving the junior a market cap of $24 million, based on 80.3 million shares outstanding. The 52-week range for the stock is 50 cents and 30 cents.
Disclosure: Readers should note that Dolly Varden is a Stockhouse client.