Dolly Varden Silver Corporation is pleased to announce that it has entered into a definitive agreement with Strikepoint Gold Inc. to acquire Strikepoint’s interest in the Porter Project, located in the Golden Triangle, British Columbia, further strengthening Dolly Varden’s position as a prominent precious metals exploration Company in the region.
“Dolly Varden is acquiring a 100% interest the highest grade, pure silver historic producer in northwest BC,” said Shawn Khunkhun, President and CEO of Dolly Varden. “The Porter Project has seen historic silver production that produced significant direct-shipping silver ore and hosts substantial known silver mineralisation that is wide open for expansion. This Project is an accretive addition to our growing mineral tenure position in the southern Golden Triangle.”
Dolly Varden has agreed to purchase from Strikepoint all of its interests to the Project for consideration of $1,100,000, which shall be satisfied by Dolly Varden issuing to Strikepoint 295,699 common shares of Dolly Varden, to be issued to Strikepoint at a deemed price of $3.72 per Consideration Share.
The issuance of the Common Shares and completion of the Acquisition remains subject to TSXV and NYSE America approval and other customary conditions and is currently expected to occur in the second half of May. The Company has agreed to use commercially reasonable efforts to promptly make all filings and take all necessary actions required to effect the Acquisition, including the issuance of the Consideration Shares. The Company intends to file a prospectus supplement to its base shelf prospectus dated April 25, 2023, to qualify the distribution of the Consideration Shares to Strikepoint.
About the Porter Project
The Porter Project contains two shear hosted silver-rich vein systems: the historic Silverado mine and Prosperity-Porter Idaho mines that are separated by a 2,350-metre-long unexplored trend. Veins at both sites run at a similar orientation, therefore it is hypothesised that the system may be continuous under the summit of Mount Rainey, overlooking the town of Stewart. The Project is strategically located at the head of the Portland Canal, a deep-water port with year-round, ice-free access.
Since the initial discovery of silver mineralisation on Mt. Rainey in the early 1900’s, most of the work was focused on the Prosperity-Porter Idaho veins, where mineralisation is hosted in six dipping parallel shear zones with strike extents of up to 600 meters, down dip extents of up to 500 meters and widths between 2 and 13 meters. The vein system was mined between 1929 and 1931 and produced 27,123 tonnes of direct shipping ore with recovered grades of 2,542 g/t silver (73.8 oz/tonne) and 1 g/t gold (yielding approximately 2.2 million ounces of silver). The ore was shipped to the port at Stewart via aerial tramway.
Exploration drilling at the Porter Project to date includes 11,702.64 metres in 73 diamond drill holes and 1,768 meters in 226 percussion drill holes.
The Porter Project contains a Historical Mineral Resource Estimate consisting of 394,700 tonnes grading 868 g/t silver, 3.37% lead and 1.41% zinc (435,000 tonnes @ 25.2 oz/tonne silver or a contained 11 million ounces) in the Indicated category and 88,900 tonnes grading 595 g/t silver (97,900 tonnes @ 17.3 oz/tonne silver or a contained 1.7 million ounces) in the Inferred category.
The source of the Historical Mineral Resource Estimate is a technical report titled “Technical Report on the Prosperity – Porter Idaho – Silverado Silver Property” dated March 10, 2008 and was prepared by independent consulting geologist N.C. Carter, Ph.D., P. Eng. for Raimount Energy Inc. The Historical Mineral Resource Estimate was re-stated for Mount Rainey Silver Inc. on May 15, 2012. The foregoing estimates made use of an extensive database up to 1985 detailing results of both underground sampling programs as well as surface and underground diamond and percussion drilling to complete a polygonal estimate that was prepared pursuant to CIM Standards on Mineral Resources and Reserves.
The Historical Mineral Resource Estimate is relevant to shareholders’ understanding of the Porter Idaho Project and its future potential. Nevertheless, the reader is cautioned that a Qualified Person on behalf of Dolly Varden has not done sufficient work to verify either the underlying sampling data or the calculation methodology to consider this to be a current resource and as a result, Dolly Varden is treating this mineral resource as an Historical Estimate, as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects. Shareholders should not rely on the Historical Mineral Resources Estimate as a current mineral resource estimate. Dolly Varden has not yet determined the extent of work needed to upgrade or verify the Historical Estimate.
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