Transcript of "Dolly Varden Corp presentation, April 2, 2012"
Dolly Varden DollySilver Varden Silver CorporationNew Silver Company with Eskay Au–Ag Potential April 2, 2012
Dolly Varden Forward-Looking Statements SilverFORWARD LOOKING INFORMATIONCertain of the statements and information herein constitute “forward-looking statements” or “forward-looking information. Anystatements 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” orvariations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or beachieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may beforward-looking statements or information. Forward looking statements or information relate to, among other things: theCompany’s business objectives and plans.Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factorsthat 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 fundsmay not be raised; the speculative nature of exploration and the stages of the Company’s properties; the effect of changes incommodity 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 thefactors that may affect any of the Company’s forward-looking statements or information. Although the Company has attemptedto identify important factors that could cause actual results to differ materially, there may be other factors that cause results notto be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-lookingstatements or information.The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinionsof management as of the date hereof, and other than as required by applicable securities laws, the Company does not assumeany 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
Dolly Varden SilverPast-producing silver mine with Precious metal rich Eskay Creek potential 3
Dolly VardenTwo strategies for creating value Silver• Confirm & expand historic silver resources with the goal to re-start the historic Dolly Varden silver mines, BC• Explore a major untested Eskay Creek-type gold & silver target at Dolly Varden• Management team experienced in both Eskay Creek-type exploration and re-starting past producing mines 4
Dolly VardenDolly Varden – Solid foundation Silver % owned • Property acquired in Spring 2011 • 9,400 hectares (94 Km2) • 2 historically active mines • 2 deposits with underground Development • Native land claims settled 5
Dolly Varden Dolly Varden – Rich history Silver M Oz Ag* • Historical production*Historical production • Well understood targets • Region with world-class projects • Experienced senior management 6
7 Dolly Varden Located in northwestern BC Silver Eskay Creek Major nearby projects: •Eskay Creek (Barrick) Historic Production Snip KSM (Kerr) 3.6MM oz Au + 180MM oz Ag Brucejack - Snowfields • Brucejack (Pretium) Silbak Premier • Silback Premier (Ascot) Historic Production Dolly Varden • Kerr-Sulphurets (Seabridge Gold) BC Moly • BC Moly (Avanti) surrounded by world-class projects 7
8 Dolly Varden Located in the Stewart Complex Silver Eskay Creek Hazelton Group Arc assemblage (green) KSM(Kerr) Brucejack Host to base and precious metal deposits 220M+ oz Ag produced historically Granduc Silbak-Premier 7M+ oz Au produced historically Wolf Torbrit Dolly Varden / High sulphidation VMS occurs in the North Star youngest Hazelton group rocks Big Bulk BC Moly typical mineralization for the region 8
World-class gold VMS deposits with at least Dolly Varden 30 tonnes gold in production & reserves* SilverDeposit Operator Country Tonnage Grade (M t) Au(g/t) Ag(g/t) Cu(%) Pb(%) Zn(%)Canadian VMS DepositsEskay Creek Barrick Canada 2.5 44.4 2087.7 — — —LaRonde Agnico Eagle Canada 43.5 4.2 52.1 0.3 — 2.7Horne Noranda Mines Canada 54.3 6.1 13.0 2.2 — —Bousquet Agnico Eagle Canada 29.7 5.3 2.1 — — —International VMS DepositsHassai La Mancha Sudan 6.2 10.0 — — — —Greens Creek Hecla USA - Alaska 11.2 4.2 560.9 0.0 4.1 10.9Abyz Kazakhmys Kazakhstan 4.4 6.5 61.0 2.1 — 5.4 Boliden ABBoliden Sweden 8.3 15.1 48.3 1.4 — — NortonMt. Morgan Australia 80.7 3.7 0.7 0.7 — — Goldfields*Dubé et al, Geological Survey of Canada 9
Dolly VardenExcellent infrastructure – via Alice Arm 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 10
Dolly Varden Foundation for Dolly Varden’s plans Silver$ Spent since Extensive exploration by previous owners: 1980 • 631 diamond drill holes • 44,090 meters of drilling M+ • 7 km underground development • 1980’s EngineeringHistorical resource estimate*: studies on mine, mill, and5.7M oz. Ag Proven + Probable tailings design8.8M oz. Ag PossibleThe qualified person has not done sufficient work toclassify the Historical Estimates as current mineralResources or Reserves. Furthermore, the issuer is nottreating these Estimates as current Mineral Resources orMineral Reserves.*Derry Michener Booth & Wahl (1986) extensively mapped by current management 11
Dolly VardenCreating significant additional value Silver Targeted exploration programs 1. Validation and 2. Identification of new, expansion of historic major Eskay Creek-type silver resource estimates gold & silver deposits clear targets 12
Dolly Varden Silver“the best new mines are often foundnear old mines” 13
Dolly VardenHistoric mineral resources* (Dilution at 10 – 16%) SilverLocation Historic Tonnes Silver Contained Resource Grade Silver Classification (g/t) (ounces)Dolly Varden Mine – Proven & 42,638 754.3 1,034,000(a) Probable (P & P)North Star Mine – (b) P&P 128,437 401.5 1,657,867Torbrit Mine – (c) Possible 786,531 312.0 7,889,700Wolf No.1 Zone – (d) P&P 77,932 395.0 989,626Wolf No.2 Zone – (e) P&P 218,512 285.9 2,008,839Wolf No.2 Zone – (f) Possible 100,295 279.4 901,031Total P&P 5,690,331 Possible 8,790,731 * Derry Michener Booth & Wahl (1986) All cut off grades 171 g/t silver See Note 4 and additional disclosure on Pg 15 Geology and Mineral Exploration of the Dolly Varden Property, British Columbia, 15 Canada Sept. 5, 2011, as revised. By Terry Garrow - Filed on SEDAR.
Dolly VardenNotes on Historic mineral resource estimates* SilverComments:a: Skerl (1964) and Mann (1974) Dolly Varden Mine staff. Remaing resource blocks are in proximity to mined out stopesand 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 theglory 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 drillingis required prior to placing reliance on this information.Note 2: Historic Resource Classifications used in mineral resource estimates at the Dolly Varden deposits termed blockswith closely spaced drilling and bulk sampling data "Proven and Probable Reserves" and made allowances for miningoperations and dilution. However, significant additional technical work is required. In the current terminology theseblocks would be termed Measured and Indicated Mineral Resources, however, for the purposes of this Technical Reportthey are to be considered Geological Information only and subject to verification by drilling and sampling, prior toreclassification.Note 3: Historic Resource Classifications used in mineral resource estimates at the Dolly Varden deposits termed blockswith more widely spaced drilling "Possible Reserves". In the case of Torbrit, Thompson and Pearson (1981) reduced theconfidence to Possible because the closely spaced drilling data must be subject to considerable check drilling. In thecurrent terminology these blocks would be termed Inferred Mineral Resources, however, for the purposes of thisTechnical Report they are to be considered Geological Information only and subject to verification by drilling andsampling, prior to reclassification.Note 4: The Qualified Person has not done sufficient work to classify the Historical Estimates as current MineralResources or Mineral Reserves. Furthermore, the Issuer is not treating these Historical Estimates as current MineralResources or Mineral Reserves.*Notes from Geology and Mineral Exploration of the Dolly Varden Property, British Columbia, CanadaSept. 5, 2011, as revised. By Terry Garrow - Filed on SEDAR 16
Validation of Dolly Vardenhistoric mineral resources SilverLooking NNW Wolf Mine North Star Mine Torbrit Mine • 4 targets • Mineralization zones of 5-20m true widths Dolly Varden Mine • Potential for high grade silver at depth • Focus on Wolf and Torbrit zone potential for mineral resource upgrade 17
Dolly Varden Silver“the Dolly Varden deposits may be silver-rich analogues to the precious metal-rich Eskay Creek deposit” (Dunne and Pinsent (2002) of the BC Geological Survey Branch) 18
Dolly Varden Size comparison to Eskay Creek SilverDolly Varden footwall alteration & exhalite deposit footprint much larger 19
1 Dolly Dolly Varden Varden New VMS exploration target Silver Silver Eskay Creek Deposit Model with comparable geological features at Dolly Varden 20 vertical footwall feeders mineralize horizontal ocean-floor strata
Dolly VardenCommon attributes Silver 120 kmDolly Varden Trend Eskay Creek Trend• VMS footprint • VMS footprint• Thick Ag rich distal exhalite • Thin exhalite, anomalous• High sulphidation • High sulphidation• Hazelton group formation • Hazelton group formation• 8 km strike length • 3 km strike length• 20 M oz Ag production, • 180 M oz Ag production • 3.6 M oz Au production stronger feeder alteration system at Dolly Varden 21
Dolly VardenHydrothermal Eruption Breccia Textures Silver ESKAY ESKAY WOLF WOLF 22
Dolly VardenVMS deposit identification SilverLooking NNW Wolf Mine Surprise 3D map-red zone • Largest alteration trend in district: 5km strike Dolly Varden Mine length on property • Potential for gold-silver VMS at depth beneath intense Red Point alteration zone potential for new Eskay Creek-type deposit 23
Dolly Varden2011 exploration program completed SilverDolly • Surface of Dolly Varden & North Star mapped • Portals re-opened and surveyedVarden • Work camp constructed in Alice Arm • BC Land Surveyors verified Torbrit mine grid on surface & U/GTorbrit • Rehabilitation of underground workings scoped • Surface of Wolf mapped and historic drill hole collars located • BC Land Surveyors verified Wolf mine gridWolf • 4,600 m of diamond drilling in 21 holes • Step-out and verification diamond drill intersections obtained • Surface geological mapping and samplingRed Point • BC Land Surveyors verified 1989-90 trenching and drill collars a basis for further value creation 24
Dolly VardenMilestones since acquisition Silver • NI 43-101 Technical Report completedQ2/11 • Airborne survey completed • Work camp constructed in Alice Arm • Completed surface drilling program, 4,600m drilled in 21 holes onQ3/11 the Wolf deposit. • Scoped the rehabilitation of underground workingsQ4/11 • Technical reporting • Trading of shares commenced Feb. 14, 2012 on TSX.V, Tier OneQ1/12 • Planning and permitting for road construction • Surface drill results reported • Design of 2012 exploration program catalysts for value creation 25
Wolf Mine: Dolly Varden Plan Silver• Three mineralized zones• Vein and Stratibound styles• Hydrothermal breccias• 2011 drilling indicatesnative silver and silver-bearing sulphides over largewidths 27
Dolly VardenExperienced Board of Directors SilverJohn King Burns • Former CFO of Drexel Burnham Lambert Commodity GroupChairman • Former managing director of Barclays Metals Group • 30+ years of extensive capital markets and resource sector experienceAllan Marter • 30+ years experience as a Chartered Accountant and CFO of variousDirector mining companies, including 7 years as President of EURO Ressources S.A. • Former Director of Minera Andes • Experienced in exploration, development and operational stages.Ron F. Nichols, P. Eng. • 30+ years (20 years with Cominco) of exploration and developmentPresident & CEO experience including Valley Copper and Snip Mines in BC • Recently re-started Ag-Cu-Pb-Zn La Negra Mine, Mexico and silver Shafter Mine, TexasPaul J. McGuigan, P. Geo. • Principal of Cambria Geosciences Inc., formerly with Esso ResourcesVP Exploration • 35+ years of experience in mineral exploration and mining operations • Active in BC exploration since 1975Allen Ambrose, P. Geo. • 30+ years of exploration and mining experienceDirector • Co-discoverer of Brisas del Cuyuni gold deposit • Director/Co-founder of multiple resource companies incl. Minera AndesTheo Sanidas • 10+ years of mining industry experienceDirector • Extensive capital markets background • Experience with M&A, financing and corporate restructuring activities 29
Dolly VardenCapital structure SilverDolly Varden Silver Corporation Upon ListingIssued Common Shares 80,265,000 Options 6,375,000 Warrants 10,479,400 Fully Diluted Shares O/S 97,119,400 Basic cash* $2.7 MM Debt Nil Market Cap (Basic @ $0.25/share) Approx. $20 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
Dolly VardenCorporate Overview Silver• 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• 2011 diamond drill program of 4,600 m in 21 holes 31
Dolly Varden SilverDolly Varden Silver CorporationSuite 910 – 355 Burrard StreetVancouver, British ColumbiaCanada V6C 2G8Tel: 778-383-3083Toll free: 1-855-381-3530Ron F. NicholsPresident, CEO & Director 32
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