Despite what we consider to be a smart exploration approach and a quality property, there isn’t much the company can do with low silver prices and a skittish market.
VANCOUVER, BRITISH COLUMBIA–(May 6, 2014) – Dolly Varden Silver Corporation (TSX VENTURE:DV)(DOLLF) (“Dolly Varden” or the “Company”) is pleased to announce the results from its geophysical program at the Dolly Varden property in Northwestern BC. The geophysical models further confirm drill targets for the Company’s proposed 2014 drill program and identify several new targets.
We’ve haven’t talked about Dolly Varden in a while, but they’ve been releasing a string of compilation maps from their geophysical and geochemical work over the past few weeks and we thought it would be worth an update. Dolly Varden is an exploration stage company focused on developing their silver property of the same name in northwestern BC, Canada. We’ve included a location map below.
The newly compiled geophysical data outlines key horizons at depth and other surface anomalies that are coincident with known mineral showings, geochemical and structural targets already identified on the Dolly Varden property.
The review of all available geophysical models identified six targets that are being recommended for follow-up work. Three of these targets are new and are located near the northern boundary of the Dolly Varden property and three of the identified targets confirm existing targets that are already scheduled for drilling in 2014.
The geophysical data adds information about the geometry and outlines the contacts between two key geologic horizons. In particular, the geophysics tracks the DVT Horizon to the north and under the Red Point area. Prior drilling on the DVT Horizon has intersected high grade silver mineralization that remains open to the north. The geophysics was also successful in outlining the Salmon River Formation that is prospective for Eskay Creek style mineralization. The geophysical results are congruent with, confirm, and add additional information to the targets slated to be drilled in 2014.
Further, the geophysical results indicate several new targets that have the potential for additional Eskay Creek style accumulations. These newly developed targets are located on the underexplored northern section of Dolly Varden’s property. The area is several kilometers to the North from the existing historical workings and abuts neighbouring exploration properties controlled by Homestake Resource Corporation and the Homestake – Agnico Eagle Mines joint venture.
Generally when we talk about geochemistry it’s in relation to drill-core assays or soil surveys. In this case, the company conducted a “whole rock” geochemical study in order to help them target the areas most likely to host economic mineralization. How does geochemistry do this? In mineralized systems, the ore is often the product of very distinct geologic processes which leave a chemical fingerprint in the rock. In some cases these processes occur as the rock is initially formed, in other cases they occur later as part of hydrothermal activity or the influence of heat and pressure on the rocks. As a result of the study, the company identified several “alteration zones” which have the potential to host economic concentrations of metals.
The geochemical study is just part of the picture. When combined with data from their geophysical surveys including airborne magnetics, VTEM and a radiometric survey an exploration plan starts to emerge. We’ve included the resulting compilation maps below.
The map above is compilation of the geochemical results and the radiometric survey. The “high temp” and “low temp” areas are not a reference to the actual rock temperature, but to the “alteration temperatures” that effected the rock. In other words, the “high temp” rocks were subject to higher temperature alteration processes and the “low temp” to lower temperature alteration processes. Metals like copper are are known to be associated with higher temperature processes while lead, zinc and silver are more likely to occur in lower temperature processes. Gold can be anywhere, but is probably more likely in a higher temperature setting. Note that the low temp zone overlaps with the radiometric high and the historic silver producers. The high temp zone is more prospective for copper-gold than silver.
Radiometric surveys can be useful in detecting rocks with high levels of potassium due it’s higher natural radiation. So while the radiometric survey is technically a geophysical method, in this case it contributes to the geochemical results by identifying potassium-rich rocks. “Potassic Alteration” is an indicator of hydrothermal alteration.
Above is the geophysical compilation. This map identifies conductive and magnetic zones as well as those with high chargeability (which may indicate disseminated or dispersed mineralization). They have also overlaid the “Potassic” zone, which was interpreted from the radiometric survey as discussed above.
Together the combined data from both the geochemical and geophysical surveys help the company to identify the “hottest” targets for follow-up exploration.
About Dolly Varden
Dolly Varden Silver Corporation is a mineral exploration company focused on the exploration and development of the Dolly Varden silver property located in northwestern British Columbia, Canada. The Dolly Varden silver property consists of 9,400 hectares that includes four well-defined high grade silver deposits, two of which have seen historical production totaling 20 million ounces of silver. All four deposits have remaining historical mineral resources and are situated in the same geologic setting as the past-producing Eskay Creek deposit. The Company has two near-term objectives for creating value at the Dolly Varden silver project: to confirm and expand the existing historical silver mineralization, and to explore and discover major Eskay Creek-type gold and silver rich VMS targets and large epithermal systems. The Company’s common shares are listed and traded on the TSX-V under the symbol DV and on the OTCBB system under the symbol DOLLF.
Despite what we consider to be a smart exploration approach and a quality property, there isn’t much the company can do with low silver prices and a skittish market. Dolly Varden is a victim of the times and their stock price has been stalled in the $0.10-0.12 range for months.
Ron F. Nichols, P.Eng., of Dolly Varden, who serves as a Qualified Person under National Instrument 43-101, supervised the preparation of the scientific and technical information concerning this news release. Further information regarding the Dolly Varden silver property, including that relating to historical production and resource estimates, can be found on the company’s website and in the Company’s Geology and Mineral Exploration of the Dolly Varden Property, Technical Report, dated September 5, 2011.