feb. 14, 2013 dolly varden presentation
TRANSCRIPT
Reopening Historic High Grade Silver Mines With Eskay Creek Scale Gold - Silver Potential
Kitsault B.C.
February 14, 2013
DOLLY VARDEN SILVER CORPORATION
1
Reopening Historic High Grade Silver Mines With Eskay Creek Scale Gold - Silver Potential
Kitsault B.C.
February 14, 2013
DOLLY VARDEN SILVER CORPORATION
1
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. 2
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. 2
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. 2
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. 2
Precious metal-rich Eskay Creek potential
with
Past-producing silver mine
3
Precious metal-rich Eskay Creek potential
with
Past-producing silver mine
3
• Confirm and expand historic silver resource base of 15 million ounces with the goal to define 40 to 50 million ounces of Silver and re-activate the historic Dolly Varden silver mines, in northwestern 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 and a strategic partner are experienced in both Eskay Creek-type exploration and re-activating past producing mines
Two strategies for creating value
4
• Confirm and expand historic silver resource base of 15 million ounces with the goal to define 40 to 50 million ounces of Silver and re-activate the historic Dolly Varden silver mines, in northwestern 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 and a strategic partner are experienced in both Eskay Creek-type exploration and re-activating past producing mines
Two strategies for creating value
4
• Confirm and expand historic silver resource base of 15 million ounces with the goal to define 40 to 50 million ounces of Silver and re-activate the historic Dolly Varden silver mines, in northwestern 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 and a strategic partner are experienced in both Eskay Creek-type exploration and re-activating past producing mines
Two strategies for creating value
4
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 involved in re-start of Ag-Cu-Pb-Zn La Negra Mine, Mexico and Shafter Silver 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 1974
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 Resources S.A. • Former Director of Minera Andes • Experienced in exploration, development and operational stages.
Theo Sanidas Founding Director
• 10+ years of mining industry experience • Extensive capital markets background • Experience with M&A, financing and corporate restructuring activities
Experienced Management & Board of Directors
5
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 involved in re-start of Ag-Cu-Pb-Zn La Negra Mine, Mexico and Shafter Silver 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 1974
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 Resources S.A. • Former Director of Minera Andes • Experienced in exploration, development and operational stages.
Theo Sanidas Founding Director
• 10+ years of mining industry experience • Extensive capital markets background • Experience with M&A, financing and corporate restructuring activities
Experienced Management & Board of Directors
5
Dolly Varden Silver Corporation - TSX-V:DV
Issued Common Shares 105,998,219
Options:- 500,000 @ $0.20 6,350,000 @ $0.25 750,000 @ $0.35
7,600,000
Warrants :- 5,000,000 @ $0.10 (Feb. 14, 2014) 212,800 @ $0.20 (Dec. 28, 2014)
5,212,800
Fully Diluted Shares O/S 118,811,219
Basic cash* $1.2 MM
Market Cap (Basic @ $0.21/share) Approx. $22 MM
* Cash position would increase by $2.49 million if all warrants and options exercised
Project potential scope & size will allow company to create significant value
Capital structure
6
• Confirm and expand historic silver resource base of 15 million ounces with the goal to define 40 to 50 million ounces of Silver and re-activate the historic Dolly Varden silver mines, in northwestern 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 and a strategic partner are experienced in both Eskay Creek-type exploration and re-activating past producing mines
Two strategies for creating value
4
Dolly Varden Silver Corporation - TSX-V:DV
Issued Common Shares 105,998,219
Options:- 500,000 @ $0.20 6,350,000 @ $0.25 750,000 @ $0.35
7,600,000
Warrants :- 5,000,000 @ $0.10 (Feb. 14, 2014) 212,800 @ $0.20 (Dec. 28, 2014)
5,212,800
Fully Diluted Shares O/S 118,811,219
Basic cash* $1.2 MM
Market Cap (Basic @ $0.21/share) Approx. $22 MM
* Cash position would increase by $2.49 million if all warrants and options exercised
Project potential scope & size will allow company to create significant value
Capital structure
6
• 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 DV Board of Directors
• Hecla will nominate one person to DV 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.
Strategic Partner – Hecla Mining Company
7
• Confirm and expand historic silver resource base of 15 million ounces with the goal to define 40 to 50 million ounces of Silver and re-activate the historic Dolly Varden silver mines, in northwestern 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 and a strategic partner are experienced in both Eskay Creek-type exploration and re-activating past producing mines
Two strategies for creating value
4
• 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 DV Board of Directors
• Hecla will nominate one person to DV 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.
Strategic Partner – Hecla Mining Company
7
Dolly Varden – Rich History
• 100% owned – 9,400 Hectares
• 20 M Oz. Ag – Historical production
• 4 known deposits – 2 produced
• Native land claims settled (Nisga’a)
8
• Confirm and expand historic silver resource base of 15 million ounces with the goal to define 40 to 50 million ounces of Silver and re-activate the historic Dolly Varden silver mines, in northwestern 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 and a strategic partner are experienced in both Eskay Creek-type exploration and re-activating past producing mines
Two strategies for creating value
4
Dolly Varden – Rich History
• 100% owned – 9,400 Hectares
• 20 M Oz. Ag – Historical production
• 4 known deposits – 2 produced
• Native land claims settled (Nisga’a)
8
Dolly Varden – Location
Surrounded by world-class projects
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)
Dolly Varden
Eskay Creek
KSM
Brucejack - Snowfields
Silbak Premier
BC Moly
Snip
9
Dolly Varden – Location
Surrounded by world-class projects
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)
Dolly Varden
Eskay Creek
KSM
Brucejack - Snowfields
Silbak Premier
BC Moly
Snip
9
• 2011 logistics base and camp built in the settlement of Alice Arm
• Property is 26 Km from tidewater at Alice Arm
• 30 Km from power grid
• Access to rail and deep water shipping
• All-weather road access
• 7 Km of existing underground development
good logistics for rehabilitation, development and exploration
Excellent infrastructure – via Alice Arm
10
• 2011 logistics base and camp built in the settlement of Alice Arm
• Property is 26 Km from tidewater at Alice Arm
• 30 Km from power grid
• Access to rail and deep water shipping
• All-weather road access
• 7 Km of existing underground development
good logistics for rehabilitation, development and exploration
Excellent infrastructure – via Alice Arm
10
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
Purchase of Property for $2.5 million translates into Acquisition cost of $0.20 per oz. of Silver
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) See additional details on pages 18 & 19
Foundation for Dolly Varden’s plans
11 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
Purchase of Property for $2.5 million translates into Acquisition cost of $0.20 per oz. of Silver
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) See additional details on pages 18 & 19
Foundation for Dolly Varden’s plans
11
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
Geology and Mineral Exploration of the Dolly Varden Property, British Columbia, Canada Sept. 5, 2011, as revised. By Terry Garrow - Filed on SEDAR.
* Derry Michener Booth & Wahl (1986) See Note 4 and additional disclosure on Pg 14
Historic mineral resources* (dilution at 10 – 16%)
All cut off grades 171 g/t silver
12
• Confirm and expand historic silver resource base of 15 million ounces with the goal to define 40 to 50 million ounces of Silver and re-activate the historic Dolly Varden silver mines, in northwestern 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 and a strategic partner are experienced in both Eskay Creek-type exploration and re-activating past producing mines
Two strategies for creating value
4
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
Geology and Mineral Exploration of the Dolly Varden Property, British Columbia, Canada Sept. 5, 2011, as revised. By Terry Garrow - Filed on SEDAR.
* Derry Michener Booth & Wahl (1986) See Note 4 and additional disclosure on Pg 14
Historic mineral resources* (dilution at 10 – 16%)
All cut off grades 171 g/t silver
12
* Notes on Historic mineral resource estimates
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
13
* Notes on Historic mineral resource estimates
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
13
Creating significant additional value
Validation and expansion of historic silver resource estimates to 40 to 50 million oz.
Targeted exploration programs
Identification of new, major Eskay Creek-type gold and silver deposits
GOLD-SILVER SILVER
14
Creating significant additional value
Validation and expansion of historic silver resource estimates to 40 to 50 million oz.
Targeted exploration programs
Identification of new, major Eskay Creek-type gold and silver deposits
GOLD-SILVER SILVER
14
3D topography with deposits and showings
15
3D topography with deposits and showings
15
“the best new mines
near old mines” are often found
16
“the best new mines
near old mines” are often found
16
* 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
17
* 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
17
* Notes on Historic mineral resource estimates
“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)
BC Geological Survey Branch
18
* Notes on Historic mineral resource estimates
“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)
BC Geological Survey Branch
18
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
*Dubé et al, Geological Survey of Canada
World-class Gold - Silver VMS deposits with plus 1 million oz. gold in production & reserves*
19
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
*Dubé et al, Geological Survey of Canada
World-class Gold - Silver VMS deposits with plus 1 million oz. gold in production & reserves*
19
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. 2
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. 2
* Areal Size Comparison to Eskay Creek
Dolly Varden feeder zone much larger than Eskay Creek feeder zone (shown at same scale) 20
* Areal Size Comparison to Eskay Creek
Dolly Varden feeder zone much larger than Eskay Creek feeder zone (shown at same scale) 20
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
New VMS exploration target
21
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
New VMS exploration target
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* VMS deposit identification
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
potential for new Eskay Creek-type deposit 22
* VMS deposit identification
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
potential for new Eskay Creek-type deposit 22
* 2012 exploration program completed
a basis for further value creation
Dolly Varden Mine – Diamond Drilling • Oriented core - diamond drilling completed 6 drill holes for a total of 1,728 meters, during a
weather shortened season. • Additional drill pads constructed for use next year
Red Point Surface Exploration • Surface mapping and sampling employed to gather lithogeochemical and trace element
information on the Red Point alteration – feeder system • Historical diamond drill core recovered for further studies
Surface Exploration & Airborne Surveys • ZTEM + Magnetic Helicopter-borne geophysical surveys completed early October 2012 • Data delivery pending & Modeling underway on 2010 and 2012 Airborne programs • Geological mapping and sampling in Moose Lamb, area east of Torbrit: Extensive alteration
and mineralization similar to nearby Torbrit discovered • Geological mapping and sampling in Surprise area, west of Wolf:
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* 2012 exploration program completed
a basis for further value creation
Dolly Varden Mine – Diamond Drilling • Oriented core - diamond drilling completed 6 drill holes for a total of 1,728 meters, during a
weather shortened season. • Additional drill pads constructed for use next year
Red Point Surface Exploration • Surface mapping and sampling employed to gather lithogeochemical and trace element
information on the Red Point alteration – feeder system • Historical diamond drill core recovered for further studies
Surface Exploration & Airborne Surveys • ZTEM + Magnetic Helicopter-borne geophysical surveys completed early October 2012 • Data delivery pending & Modeling underway on 2010 and 2012 Airborne programs • Geological mapping and sampling in Moose Lamb, area east of Torbrit: Extensive alteration
and mineralization similar to nearby Torbrit discovered • Geological mapping and sampling in Surprise area, west of Wolf:
23
* 2012 exploration program completed
a basis for further value creation
Torbrit Mine Rehabilitation • Underground access safely achieved for majority of 1025 level and upper sub-
levels • Historical survey control re-established and transformed to 2012 survey base • Historical underground development & stoping data assembled and 3D
modeled employing the 2012 survey base – guide to confirmation drilling
Torbrit Mine Exploration & Permitting • Underground mapping and sampling done in selected areas • Surface diamond drill pads constructed for use in pending definition drilling
phase • Environmental water sampling conducted with favorable good quality water
discharge results on Torbrit underground • Rehabilitation of 1025 level and favorable water sampling results will allow for
Permitting of underground development and diamond drilling
24
* 2012 exploration program completed
a basis for further value creation
Torbrit Mine Rehabilitation • Underground access safely achieved for majority of 1025 level and upper sub-
levels • Historical survey control re-established and transformed to 2012 survey base • Historical underground development & stoping data assembled and 3D
modeled employing the 2012 survey base – guide to confirmation drilling
Torbrit Mine Exploration & Permitting • Underground mapping and sampling done in selected areas • Surface diamond drill pads constructed for use in pending definition drilling
phase • Environmental water sampling conducted with favorable good quality water
discharge results on Torbrit underground • Rehabilitation of 1025 level and favorable water sampling results will allow for
Permitting of underground development and diamond drilling
24
* Torbrit Mine 2012 Underground Mapping and Sampling
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* Torbrit Mine 2012 Underground Mapping and Sampling
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* 2012 Exploration Areas Dolly Varden – Torbrit
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* 2012 Exploration Areas Dolly Varden – Torbrit
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* Dolly Varden to Torbrit – Longitudinal Section
27
* Dolly Varden to Torbrit – Longitudinal Section
27
* 2012 Diamond Drilling – Dolly Varden area
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* 2012 Diamond Drilling – Dolly Varden area
28
* Torbrit – 1025 Level – 2012 Sample Results
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* Torbrit – 1025 Level – 2012 Sample Results
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2013 Objectives – Longer Term Milestones
2013 Objectives • Underground mapping, sampling and step out diamond drilling to expand the
historical resource base at the Torbrit deposit starting early 2013. • Identify additional silver resources at Dolly Varden and Torbrit deposits by
surface diamond drilling down plunge of known Historic resource blocks. • Continue to refine the Eskay target at Redpoint with geochemistry, alteration
and structural studies, and integrate VTEM & ZTEM results into a model to guide a summer, 2013 surface diamond drill program.
Longer Term Milestones (success contingent) • SILVER MINERAL RESOURCES: Convert historic resources and identify new
resources at all 4 deposits with a goal of identifying between 45 to 50 million ounces of silver in NI 43-101 compliant categories.
• ECONOMIC STUDIES: Contingent on defining 45 million + ounces of silver resources, initiate scoping & feasibility studies to determine the economic viability of a possible 1,000 to 1,500 tonne per day mining operation.
• EXPLORE ESKAY TARGETS; Continue to develop Eskay targets towards discovery
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2013 Objectives – Longer Term Milestones
2013 Objectives • Underground mapping, sampling and step out diamond drilling to expand the
historical resource base at the Torbrit deposit starting early 2013. • Identify additional silver resources at Dolly Varden and Torbrit deposits by
surface diamond drilling down plunge of known Historic resource blocks. • Continue to refine the Eskay target at Redpoint with geochemistry, alteration
and structural studies, and integrate VTEM & ZTEM results into a model to guide a summer, 2013 surface diamond drill program.
Longer Term Milestones (success contingent) • SILVER MINERAL RESOURCES: Convert historic resources and identify new
resources at all 4 deposits with a goal of identifying between 45 to 50 million ounces of silver in NI 43-101 compliant categories.
• ECONOMIC STUDIES: Contingent on defining 45 million + ounces of silver resources, initiate scoping & feasibility studies to determine the economic viability of a possible 1,000 to 1,500 tonne per day mining operation.
• EXPLORE ESKAY TARGETS; Continue to develop Eskay targets towards discovery
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Corporate Overview
• Evaluating the re-start of historic Dolly Varden Silver Mining Camp, BC
• Exploring a major untested Eskay Creek-type gold and silver target
• Senior management team and strategic partner are experienced in both Eskay Creek-type exploration and the re-activation of old mines
• 2013 proposed underground and surface diamond drill programs to confirm and expand silver resources and define and drill Eskay-type targets.
31
Corporate Overview
• Evaluating the re-start of historic Dolly Varden Silver Mining Camp, BC
• Exploring a major untested Eskay Creek-type gold and silver target
• Senior management team and strategic partner are experienced in both Eskay Creek-type exploration and the re-activation of old mines
• 2013 proposed underground and surface diamond drill programs to confirm and expand silver resources and define and drill Eskay-type targets.
31
Corporate Overview
Dolly Varden Silver Corporation TSX-V:DV Suite 910 – 355 Burrard Street Vancouver, British Columbia, www.dollyvardensilver.com 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]
Contact Information
32
Corporate Overview
Dolly Varden Silver Corporation TSX-V:DV Suite 910 – 355 Burrard Street Vancouver, British Columbia, www.dollyvardensilver.com 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]
Contact Information
32