dv corp presentation, sept. 13, 2012
TRANSCRIPT
Dolly Varden
Silver Dolly Varden
Silver Corporation
TSX–V:DV
New Silver Company with Eskay Creek Au–Ag Potential
Sept. 13, 2012
Dolly Varden
Silver
FORWARD LOOKING INFORMATION Certain of the statements and information herein constitute “forward-looking statements” or “forward-looking information. Any
statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as
“expects”, “anticipates”, “believes”, “plans”, “estimates”, “intends”, “targets”, “goals”, “forecasts”, “objectives”, “potential” or
variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be
achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be
forward-looking statements or information. Forward looking statements or information relate to, among other things: the
Company’s business objectives and plans.
Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors
that could cause actual events or results to differ from those reflected in the forward-looking statements or information,
including, without limitation, the need for additional capital by the Company through financings, and the risk that such funds
may not be raised; the speculative nature of exploration and the stages of the Company’s properties; the effect of changes in
commodity prices; regulatory risks that development of the Company’s material properties will not be acceptable for social,
environmental or other reasons and the efforts and abilities of the senior management team. This list is not exhaustive of the
factors that may affect any of the Company’s forward-looking statements or information. Although the Company has attempted
to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not
to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking
statements or information.
The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions
of management as of the date hereof, and other than as required by applicable securities laws, the Company does not assume
any obligation to update forward-looking statements and information if circumstances or management’s assumptions, beliefs,
expectations or opinions should change, or changes in any other events affecting such statements or information.
Paul McGuigan, P Geo, V.P. of Exploration has reviewed and approved the content contained in this presentation.
Forward-Looking Statements
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Dolly Varden
Silver
Past-producing silver mine
Precious metal rich Eskay Creek potential
with
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Dolly Varden
Silver Two strategies for creating value
• Confirm and expand historic silver resources with the
goal to define 40 to 50 million ounces of Silver and
re-start the historic Dolly Varden silver mines, BC
• Explore a major untested Eskay Creek-type gold &
silver target at Dolly Varden (Eskay Creek production
of 3.6 million oz. Gold, 180 million oz. Silver)
• Management team experienced in both Eskay Creek-
type exploration and re-starting past producing mines
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Dolly Varden
Silver Experienced Management & Board of Directors
John King Burns
Chairman
• Former CFO of Drexel Burnham Lambert Commodity Group
• Former managing director of Barclays Metals Group
• 30+ years of extensive capital markets and resource sector experience
Ron F. Nichols, P. Eng.
President & CEO
• 30+ years (20 years with Cominco) of exploration and development experience including Valley Copper and Snip Mines in BC
• Recently re-started Ag-Cu-Pb-Zn La Negra Mine, Mexico and silver Shafter Mine, Texas
Paul J. McGuigan, P. Geo.
VP Exploration
• Principal of Cambria Geosciences Inc., formerly with Esso Resources
• 35+ years of experience in mineral exploration and mining operations
• Active in BC exploration since 1975
Allen Ambrose, P. Geo.
Director
• 30+ years of exploration and mining experience
• Co-discoverer of Brisas del Cuyuni gold deposit
• Director/Co-founder of multiple resource companies incl. Minera Andes
Allan Marter
Director
• 30+ years experience as a Chartered Accountant and CFO of various mining companies, including 7 years as President of EURO Ressources S.A.
• Former Director of Minera Andes
• Experienced in exploration, development and operational stages.
Theo Sanidas
Director
• 10+ years of mining industry experience
• Extensive capital markets background
• Experience with M&A, financing and corporate restructuring activities 5
Dolly Varden
Silver Capital structure
Dolly Varden Silver Corporation - TSX-V:DV
Issued Common Shares 100,290,000
Options 7,200,000
Warrants 10,479,400
Fully Diluted Shares O/S 117,969,400
Basic cash* $4.05 MM
Market Cap (Basic @ $0.25/share) Approx. $25 MM
* Cash position would increase by $3.016 million if all warrants and options
exercised
project potential scope & size will allow company to create significant value 6
Dolly Varden
Silver Strategic Partner – Hecla Mining Company
• Acquired 20 million shares for a 19.9% interest
• Hecla has the right to maintain their 19.9% interest
• Hecla has right to nominate one person to the Dolly’s Board
• Hecla will nominate one person to Dolly’s technical committee
• Strong strategic partner with 100 years of silver mining experience
• Flagship Greens Creek mine in same geologic setting as Dolly’s
Precious Metal Rich VMS target creates synergies for exploration.
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Dolly Varden
Silver Dolly Varden – Solid foundation
%
owned • Property acquired in Spring 2011
• 9,400 hectares (94 Km2)
• 2 historically active mines
• 2 deposits with Development
• Native land claims settled
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Dolly Varden
Silver Dolly Varden – Rich history
M Oz Ag* • Historical production
• Well understood targets
• Region with world-class projects
• Experienced senior management
*Historical production
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Dolly Varden
Silver
surrounded by world-class projects
Dolly Varden
Eskay Creek Major nearby projects:
• Eskay Creek (Barrick) Historic Production
3.6MM oz Au + 180MM oz Ag
• Silback Premier (Ascot) Historic
Production
2.2MM oz Au + 44.2MM oz Ag
• Brucejack (Pretium)
• KSM (Seabridge Gold)
• BC Moly (Avanti)
•
Located in northwestern BC
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KSM
Brucejack - Snowfields
Silbak Premier
BC Moly
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Snip
Dolly Varden
Silver Located in the Stewart Complex
typical mineralization for the region
Dolly Varden /
North Star
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Brucejack
KSM
Granduc
BC Moly
Big Bulk
Wolf
Torbrit
Eskay Creek
Silbak-Premier
Hazelton Group Arc assemblage (green)
Host to base and precious metal deposits
220M+ oz Ag produced historically
7M+ oz Au produced historically
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Dolly Varden
Silver
*Dubé et al, Geological Survey of Canada
Deposit Operator Country Tonnage Grade
(M t) Au(g/t) Ag(g/t)
Canadian VMS Deposits
Eskay Creek Barrick Canada 2.5 44.4 2087.7
LaRonde Agnico Eagle Canada 43.5 4.2 52.1
Horne Noranda Mines Canada 54.3 6.1 13.0
Bousquet Agnico Eagle Canada 29.7 5.3 2.1
International VMS Deposits
Hassai La Mancha Sudan 6.2 10.0 —
Greens Creek Hecla USA - Alaska 11.2 4.2 560.9
Abyz Kazakhmys Kazakhstan 4.4 6.5 61.0
Boliden Boliden AB
Sweden 8.3 15.1 48.3
Mt. Morgan Norton
Goldfields Australia 80.7 3.7 0.7
World-class gold - Silver VMS deposits with plus
1 million oz. gold in production & reserves*
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Dolly Varden
Silver
• 2011 Logistics base and
camp built in the
settlement of Alice Arm
• Property is 30 Km from
tidewater at Alice Arm
• 30 Km from power grid
• Access to rail and
deepwater shipping
• All-weather road access
• 7 Km of existing
underground development
good logistics for rehabilitation, development and exploration
Excellent infrastructure – via Alice Arm
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Dolly Varden
Silver
extensively mapped by current management
Extensive exploration by
previous owners:
• 631 diamond drill holes
• 44,090 meters of drilling
• 7 km underground
development
• 1980’s Engineering
studies on mine, mill,
and tailings design
Foundation for Dolly Varden’s plans
Purchase of Property for
$2.5 million translates into
Acquisition cost of $0.20 per
oz. of Silver
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Historical resource estimate*:
5.7M oz. Ag Proven + Probable
8.8M oz. Ag Possible The qualified person has not done sufficient work to
classify the Historical Estimates as current mineral
Resources or Reserves. Furthermore, the issuer is not
treating these Estimates as current Mineral Resources
or Mineral Reserves.
*Derry Michener Booth & Wahl (1986)
Dolly Varden
Silver
clear targets
1. Validation and
expansion of historic
silver resource estimates
to 40 to 50 million oz.
Targeted
exploration
programs
2. Identification of new,
major Eskay Creek-type
gold and silver deposits
Creating significant additional value
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Dolly Varden
Silver
“the best new mines
near old mines” are often found
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Dolly Varden
Silver 3D Topography with deposits and showings
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Dolly Varden
Silver Historic mineral resources* (Dilution at 10 – 16%)
* Derry Michener Booth & Wahl (1986) See Note 4 and additional disclosure on Pg 15
Location Historic
Resource
Classification
Tonnes Silver
Grade
(g/t)
Contained
Silver
(ounces)
Dolly Varden Mine –
(a)
Proven &
Probable (P & P)
42,638 754.3 1,034,000
North Star Mine – (b) P & P 128,437 401.5 1,657,867
Torbrit Mine – (c) Possible 786,531 312.0 7,889,700
Wolf No.1 Zone – (d) P & P 77,932 395.0 989,626
Wolf No.2 Zone – (e) P & P 218,512 285.9 2,008,839
Wolf No.2 Zone – (f) Possible 100,295 279.4 901,031
Total P & P
Possible
5,690,331
8,790,731
All cut off grades 171 g/t silver
Geology and Mineral Exploration of the Dolly Varden Property, British Columbia,
Canada Sept. 5, 2011, as revised. By Terry Garrow - Filed on SEDAR. 18
Dolly Varden
Silver
Comments:
a: Skerl (1964) and Mann (1974) Dolly Varden Mine staff. Remaining resource blocks are in proximity to mined out stopes
and downplunge extensions of mined out areas.
b: Thompson & Pearson (1981) Derry Michener & Booth. Minimum mining width of 5 ft. No prior mining.
c: Leigh & Thompson (1983) Derry Michener & Booth. Comprised of 18 zones. Most zones are in the hanging wall of the
glory hole and mined out stopes of the 1959 operation.
d: Thompson & Pearson (1981) Derry Michener & Booth. No prior mining. Tested by two levels of underground adits.
e: Thompson & Pearson (1981) Derry Michener & Booth. No prior mining. Tested by three levels of undergound adits.
f: Thompson & Pearson (1981) Derry Michener & Booth. No prior mining.
Note 1: This resource estimate was prepared from incomplete old plans and sections, considerable verification drilling
is required prior to placing reliance on this information.
Note 2: Historic Resource Classifications used in mineral resource estimates at the Dolly Varden deposits termed blocks
with closely spaced drilling and bulk sampling data "Proven and Probable Reserves" and made allowances for mining
operations and dilution. However, significant additional technical work is required. In the current terminology these
blocks would be termed Measured and Indicated Mineral Resources, however, for the purposes of this Technical Report
they are to be considered Geological Information only and subject to verification by drilling and sampling, prior to
reclassification.
Note 3: Historic Resource Classifications used in mineral resource estimates at the Dolly Varden deposits termed blocks
with more widely spaced drilling "Possible Reserves". In the case of Torbrit, Thompson and Pearson (1981) reduced the
confidence to Possible because the closely spaced drilling data must be subject to considerable check drilling. In the
current terminology these blocks would be termed Inferred Mineral Resources, however, for the purposes of this
Technical Report they are to be considered Geological Information only and subject to verification by drilling and
sampling, prior to reclassification.
Note 4: The Qualified Person has not done sufficient work to classify the Historical Estimates as current Mineral
Resources or Mineral Reserves. Furthermore, the Issuer is not treating these Historical Estimates as current Mineral
Resources or Mineral Reserves.
*Notes from Geology and Mineral Exploration of the Dolly Varden Property, British Columbia, Canada
Sept. 5, 2011, as revised. By Terry Garrow - Filed on SEDAR
Notes on Historic mineral resource estimates*
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Dolly Varden
Silver
Validation and expansion of
historic mineral resources
potential for mineral resource upgrade and expansion
Wolf Mine Looking NNW
Dolly Varden Mine
Torbrit Mine North Star Mine
• 4 targets
• Mineralization zones of
5-20m true widths
• Potential for high grade
silver at depth
• Focus on Wolf, Dolly
Varden, and Torbrit
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Dolly Varden
Silver
“the Dolly Varden deposits
to the precious metal-rich Eskay Creek deposit”
may be silver-rich analogues
(Dunne and Pinsent (2002) of the BC Geological Survey Branch)
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Dolly Varden
Silver Size comparison to Eskay Creek
Dolly Varden feeder zone much larger than Eskay Creek feeder zone
(shown at same scale) 22
Dolly Varden
Silver
DollyVarden
SilverNew VMS exploration target
vertical footwall feeders mineralize horizontal ocean-floor strata
1
Eskay Creek Deposit Model
with comparable geological
features at Dolly Varden
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Dolly Varden
Silver VMS deposit identification
potential for new Eskay Creek-type deposit
3D map-red
zone
Dolly Varden Mine
Wolf Mine
• 5km strike length of
strong feeder style
alteration on the property
• Potential for gold-silver
VMS at depth beneath
intense Red Point alteration
zone
Looking NNW
Surprise
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Dolly Varden
Silver 2011 exploration program completed
a basis for further value creation
Dolly Varden
• Surface of Dolly Varden & North Star mapped
• Portals re-opened and surveyed
• Work camp constructed in Alice Arm
Torbrit • BC Land Surveyors verified Torbrit mine grid on surface & U/G
• Rehabilitation of underground workings scoped
Wolf
• Surface of Wolf mapped and historic drill hole collars located
• BC Land Surveyors verified Wolf mine grid
• 4,600 m of diamond drilling in 21 holes
• Step-out and verification diamond drill intersections obtained
Red Point • Surface geological mapping and sampling
• BC Land Surveyors verified 1989-90 trenching and drill collars
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Dolly Varden
Silver Wolf mine - Diamond drilling setup
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Dolly Varden
Silver
2012 Exploration targets
Dolly Varden – Torbrit - Redpoint
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Dolly Varden
Silver Dolly Varden to Torbrit – Longitudinal Section
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Dolly Varden
Silver 2012 Proposed Drilling – Dolly Varden area
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Dolly Varden
Silver Torbrit – 1000 level – Historic drill results
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Dolly Varden
Silver Use of Proceeds
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Dolly Varden 2012 Work Program Budget
Road & Bridges - Km 1 to 24 $ 824,750.00
Preparation & Mobilization $ 75,000.00
Program Support & Logistics $ 1,018,000.00
Geoscience Program $ 341,000.00
Drill Program – 8845 meters $ 2,641,450.00
Geotechnical & Environmental Program $ 298,000.00
Road & Bridges - Km 24 to Torbrit $ 33,000.00
Geotechnical & Environmental Program $ 172,800.00
Airborne Geophysical Program $ 210,000.00
Underground Prep Work $ 950,000.00
Grand Total $ 6,564,000.00
Dolly Varden
Silver
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2012 Objectives – Longer term milestones
2012 Objectives
• Increase silver resources at Dolly Varden and Torbrit deposits by drilling
down plunge of known Historic resource blocks.
• Limited infill drilling and underground sampling to begin to convert Wolf
historic resources, and 2011 drill results to 43-101 compliant categories.
• Refine Eskay target on Redpoint with geochemistry, alteration studies
and geophysics (VTEM) prior to drill testing (minimum 3 holes in 2012)
Longer Term Milestones (success contingent)
• Increase Historic resources at all 4 deposits from current 14 million
ounces to 45 to 50 million ounces of 43-101 compliant resources.
• With success in defining 45 million + ounces initiate scoping through to
feasibility studies to determine the economic viability of a 1,000 to 1,500
tonne per day operation.
• Continue to develop Eskay targets towards discovery.
Dolly Varden
Silver Corporate Overview
• Evaluating the re-start of historic Dolly
Varden silver mines, BC
• Exploring a major untested Eskay Creek-
type gold and silver target
• Senior management team experienced in
both Eskay Creek-type exploration and re-
starting old mines
• 2012 proposed diamond drill program of
8,900 m to expand silver resources and
define and drill Eskay type targets. 33
Dolly Varden
Silver
Dolly Varden Silver Corporation TSX-V:DV
Suite 910 – 355 Burrard Street
Vancouver, British Columbia
Canada V6C 2G8
Tel: 778-383-3083
Toll free: 1-855-381-3530
Ron F. Nichols
President, CEO & Director
Direct line: 604-398-4345
Investor Relations
Strata Star – Gary Lindsey
Tel: 1-720-273-6224
Email: [email protected]
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