Dolly Varden Silver (DV.V) has announced its board of directors has approved the exploration budget for 2017. The company will spend approximately C$3.5M on the property this year which will include 5,000 meters of diamond drilling.
Approximately two-thirds of the total drill program will be focusing on resource expansion, whilst the remaining 1,500-1,700 meters will be allocated to reconnaissance drilling on new drill targets. As we explained in our previous report on this very promising silver explorer (which you can read HERE), we think the company will be able to increase its silver resource quite substantially at a relatively low discovery cost.
Dolly Varden is also raising C$1M in hard dollars (in an offering priced at C$0.73 per share) and an additional C$1M in flow-through funds at C$0.85 per share.
The company’s share price has bounced off the December-lows, and if the silver price keeps the current momentum going, we might see DV leaving the penny stock status sooner rather than later. Deservedly so, as we can’t think of another high-grade silver resource in a first-tier mining jurisdiction trading at less than a dollar per ounce of silver in the ground.