Dolly Varden Silver Corporation
Dolly Varden Silver — Merger or Acquisition (December 2021)
24 slides from Dolly Varden Silver's merger presentation, Dec 3, 2021
Slide 1: Dolly Varden to Acquire the Homestake Ridge Project
TSX-V: DV OTCQX: DOLLF TSX: FURY NYSE A: FURY D o l l y Va r d e n t o A c q u i r e the Homestake Ridge Project Consolidating a High-Grade Silver/Gold District in BC
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This presentation may contain forward-looking statements that are not historical facts. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic condi
Slide 3: Unifying Resources of the Kitsault Valley
U N I F Y I N G R E S O U R C E S O F T H E K I T S A U LT VA L L E Y D O L LY VA RDEN K I T S A U LT VALLEY PROJECT HOMESTAKE RIDGE TSX-V: DV OTCQX: DOLLF
Slide 4: Transaction Highlights
TRANSACTION HIGHLIGHTS Combined resource base of 34.7 Moz Ag + 166 koz Au Indicated and 29.3 Moz Ag + 817 koz Au Inferred Increased Resource Solidifies the amalgamated project as among the largest undeveloped Base precious metal assets in Western Canada Exposure to a large and highly prospective lan
Slide 5: Transaction Overview
TRANSACTION OVERVIEW Pro-Forma Capitalization Structure Current DV Shares Outstanding 130.9 M Warrants 8.8 M Dolly Varden will acquire all the issued and Options 7.4 M outstanding shares of Homestake Ridge Shares Issued to FURY 76.5 M Corporation, a wholly-owned subsidiary of Value of Shares Issued
Slide 6: Prolific Metallogenic Belt
P R O L I F I C M E TA L L O G E N I C B E LT A commanding position at the southern tip of the Golden Triangle WOLF MINERAL SHOWINGS NORTH STAR TORBRIT DOLLY VARDEN FURY DOLLY VARDEN HECLA TSX-V: DV OTCQX: DOLLF 5
Slide 7: Proximity to Infrastructure
PROXI MIT Y TO I NFR ASTRUCTU RE HOMESTAKE MAIN WOLF 170 km from the town of Terrace TORBRIT HOMESTAKE SILVER 46 km SE of the deep-water port NORTH STAR of Stewart SOUTH REEF DOLLY VARDEN 30 km from power grid and the town of Kitsault KITSAULT Power Grid, Deep Water 25 km road maintained by Port, Ro
Slide 8: Combined Project Advantages
C O M B I N E D P R O J E C T A D VA N TG E S Shared technical knowledge, allowing for Economies of scale to reduce combined systematic exploration along the same G&A: shared workforce, permitting efforts, geological trend, unhindered by property community and stakeholder engagement, boundaries infr
Slide 9: Combined Gold & Silver Resources
CO M B I N E D G O L D & S I LV E R R E S O U RC E S Combined Silver Equivalent 100 DV HR Category Property Cut-Off Tonnes Ag (g/t) Ag oz Au (g/t) Au (oz) 80 Moz AgEq 60 Dolly Varden 150 g/t Ag 3,417,0000 299.8 32,931,000 - - 40 Indicated Homestake Ridge 2.0 g/t AuEq 736,000 74.8 1,800,000 7.02 165,
Slide 10: Homestake Ridge – Exploration Upside: Mineral Resource Long Section
H O M E S TA K E R I D G E – E X P L O R AT I O N U P S I D E MINERAL RESOURCE LONG SECTION Drilling over the 7,500-ha property has outlined mineralization with three-dimensional continuity, and size and grades that can potentially be extracted economically. TSX-V: DV OTCQX: DOLLF 9
Slide 11: Homestake-South Reef Mineralization
H O M E S TA K E - S O U T H R E E F M I N E R A L I Z AT I O N The South Reef Zone is part of Homestake Ridge and sits along a sub-parallel structure to the west of the main Homestake Zone. It contains high-grade, structurally controlled gold mineralization. South Reef was newly delineated by Fury
Slide 12: Dolly Varden Discovery Potential
D O L LY VA R D E N D I S C O V E RY P OT E N T I A L • Existing deposits open along strike/down dip in some cases • Torbrit Horizon silver trend WOLF • Western Gold Belt alteration trend that aligns with TORBRIT Fury Gold Mines’ Homestake Ridge project NORTH STAR • Southern Gold Belt, just south of
Slide 13: Dolly Varden – Expansion Potential
D O L LY VA R D E N – E X PA N S I O N P O T E N T I A L The deposits sit at southern end of a surface potassic alteration signature. The potential is for further heat sources down plunge along the WOLF TO R BRIT favorable volcanogenic Torbrit horizon. The image to the right shows an isometric side
Slide 14: Regional Exploration Potential
R E G I O N A L E X P LO R AT I O N P OT E N T I A L Eliminating property boundaries for more comprehensive regional exploration, targeting the underexplored gap between deposits with the aim of continuing to grow resources and further take advantage of economies of scale TSX-V: DV OTCQX: DOLLF 13
Slide 15: Community Relations
C O M M U N I T Y R E L AT I O N S Dolly Varden Silver is a member of the BC Regional Mining Alliance (BCRMA), a regional partnership with First Nations (Tahltan and Nisga’a), industry and provincial government representatives Dolly Varden seeks to share the benefits of our work by: • Building stron
Slide 16: Leadership
LEADERSHIP MANAGEMENT SHAWN KHUNKHUN R O B E R T V A N E G M O N D , P. G e o A N N F E H R , C PA President, CEO & Director Chief Geologist Chief Financial Officer ADVISORS KURT ALLEN JODIE GIBSON R YA N W E Y M A R K Technical Committee Technical Advisor, Geology Technical Advisor, Engineer D I R
Slide 17: Conclusions: Unique Investment Opportunity
CONCLUSIONS Large consolidated silver-gold resource Resource expansion and discovery potential UNIQUE Located in a safe, mining friendly jurisdiction INVESTMENT OPPORTUNITY Providing investors leverage to precious metal prices Larger company with a strong supportive shareholder base TSX-V: DV OTCQX:
Slide 18: Contact
C O N TA C T S H AWN K H U N K H U N CONTINUING TO GROW S I LV ER A N D G O L D R E SOURCES President, CEO & Director IN BC’S GOLDEN TRIANGLE O: 604.602.1440 C: 604.374.5515 E: sk@dollyvardensilver.com Learn more at: WWW.DOLLYVARDENSILVER.COM TSX-V: DV OTCQX: DOLLF 17
Slide 19: Homestake Ridge PEA
H O M E S TA K E R I D G E P E A Base Case: US$1,350/oz gold, US$12/oz silver, US$3.00/lb copper, US$1.00/lb lead and an exchange rate of 0.70 (US$/C$) The Company cautions that the PEA is preliminary in nature in that it Net present value (NPV5%) after tax and mining duties US$108 million includes
Slide 20: Dolly Varden Resources
D O L LY VA R D E N R E S O U R C E S Category Deposit Tonnes Silver (g/t Ag) Silver oz (contained) Torbrit 2,623,000.00 296.8 25,025,000.00 1. Effective May 8, 2019, Apex Geosciences Ltd. Dolly Varden 156,000.00 414.2 2,078,000.00 2. 150 grams of silver per tonne (g/t Ag) cutoff grade Indicated Wol
Slide 21: Homestake Ridge Resources
H O M E S TA K E R I D G E R E S O U R C E S Tonnes Gold Gold Silver Silver Copper Copper Lead Lead 1. Canadian Institute of Mining, Metallurgy and Petroleum Category Zone (Mt) (g/t Au) (oz) (g/t Ag) (Moz) (%) (Mlbs) (%) (Mlbs) (CIM) Definition Standards for Mineral Resources and Mineral Reserves da
Slide 22: 2020 Drilling
2020 DRILLING 11,000m of drilling completed Step-out holes at Torbrit • DV20-211: 351 g/t silver over 12.75 m, including 1083 g/t silver over 2.70 m • DV20-213: 135 g/t silver over 37.50 m, including 906 g/t silver over 1.00 m • DV20-222: 204 g/t silver over 15.55 m, including 310 g/t silver over 6.
Slide 23: Dolly Varden Project Success
D O L LY VA R D E N P R O J E C T S U CC E S S Discovery of Torbrit North Offset Discovery of Chance Vein Offset DV17-063: 22.74 m at 433 g/t Ag DV19-165: 26.50m at 385 g/t Ag Including: 5.00m at 1,606 g/t Ag Discovery of Torbrit East Offset DV19-166: 20.65m at 233 g/t Ag DV17-076: 27.00m at 120 g/t
Slide 24: Regional Exploration
R E G I O N A L E X P LO R AT I O N • Focus on developing new gold and silver targets in 15 km length of prospective Hazelton rocks between the two combined projects (Betty Creek and Salmon River). • Full review of historical datasets, geologic mapping, stream sediment and rock chip sampling. • New
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