The Silver G̶o̶l̶d̶e̶n̶ Triangle of British Columbia

0:08 Hello everyone and welcome to Dolly Varden Silver Corps live investment summit today hosted by 6. I'm pleased to introduce our speakers today. We have Sean Kuhn-Kuhn, CEO, President and Director, and Robert von Eggman, Chief Geologist. Sean and Robert will walk us through a company presentation and then we will be accepting questions live, so please remember that you can submit your questions at any time on the Q&A panel on the right hand side of the screen, and we'll get to them after the presentation. And as always, this summit is being recorded and will be available to watch afterwards on

0:38 6.com. So without any further ado, I'll hand it over to you, Sean, to get things started. Thank you so much, Dasha. Grateful to be here. Grateful for everybody attending. We're in the midst of summer, so I really appreciate everyone joining us today to learn more about Dolly Varden and to learn why we want to bring some attention to the Golden Triangle and we've got a presentation that's going to highlight the silver in the Golden Triangle. You know, part of the reason that we've put this presentation together is For silver focused investors who are looking for silver opportunities, I think we think of silver, when we think of silver, we think of Mexico, we think of Bolivia, we think of Poland, Argentina, historically we've thought of Nevada, but we really wanted to highlight the Golden Triangle being home to some of the largest, highest grade silver deposits, both in the modern era, but also historically over the last 130 years. So we're gonna highlight some of those silver mines.

1:49 We're gonna talk about how Dolly Varden, we believe could be one of those next great silver opportunities. So we'll take you through a quick presentation here. Rob and I will be making some forward-looking statements throughout the presentation. So just as a big picture here, looking at the Golden Triangle, again, there's a few areas in the world today, Newfoundland, parts of Australia, Nevada, that have captivated investors that have really been a focus to mineral exploration and mining activities. And the Golden Triangle is one of those great areas. We've seen a resurgence since 2017, since the Valley of the Kings discovery and since Predium's development of the Bruce Jack mine.

2:37 So we've had a couple of factors here that have led to this. We've had a government that's brought in a lot of infrastructure. We've had melting snow. We've had higher metal prices. And I'm happy to report today that the largest miners, Newcrest, Newmont, they're in the area. We've got tremendous activity occurring in the area. And so on the right hand side of the page, we've got the triangle, we've got some of the big players in the triangle, we've seen some big M&A activity recently, Newmont buying GT Gold for 500 million dollars. And then on the left hand side of the screen, we've zoomed into the Dolly Varden project. So we're just south of Stuart. We're in Alice Arm. Tremendous infrastructure and we're sandwiched in between Hecla and Fury and we've got a large silver endowment, a high-grade large silver endowment.

3:31 So again, focus of the presentation is highlighting the big silver in the Golden Triangle, the Golden Triangle and these numbers are as of 2017. We've seen a lot of money and a lot of big discoveries in the last 4 years. And so these numbers would be significantly enhanced. But just as of 2017, we've seen close to 1 billion ounces of silver discovered in the triangle. And we're gonna highlight 6 of those mines. And then we're gonna talk about how Dolly Varden already is and has the potential to be a world-class opportunity. So starting here with SK Creek, we're going to highlight here that 160 million ounces of 2000 gram per tonne silver was produced. Berwick was the operator here.

4:23 In addition to the big Silver that's come out of this project, 3.3Moz of Gold, Skeena Resources has been active on this project for the last few years, since about 2018. And Skeena currently has in 43-101 about 100 million ounces of silver. So we've seen 160 million ounces come out of this project. We've got 100 million ounces there today. And Skeena has really shown us in the Golden Triangle and as investors that the opportunity, you know, they've grown a market cap from $35M to almost $1Bn. And This is when you could turn on and reactivate one of these old giants. That is some of the great opportunities in the area.

5:13 We've got Ascot at the Premier Mine. The Premier Mine produced 50Moz of Silver. Again, so much of the area is known for, these are some of the greatest, richest gold mines, but there's a tremendous amount of silver coming out of these projects again, and that's what we're highlighting here today. Bruce Jack produced over 1 million and a half ounces of silver in the last couple of years in addition to their gold. And again, we're seeing in the Hazleton Rocks, in this epithermal system, a lot of high-grade silver coming out of these projects. Porter, Idaho is one of the historic mines overlooking the town of Stewart. Again, average production grades of 2500 gram per ton Silver. So these projects, Eskay, Porter, Dolly, these are some of the richest Silver mines you'll see anywhere in the world.

6:09 And then focusing out of these 6 mines that we're highlighting, 2 of them, Dolly Varden currently owns 100% of. And this is the old Dolly mine, again, grades in excess of 1000 grams per tonne. This goes back to 1920s, where 1.3 million ounces were produced. And then this is really the big prize on our property. If you take in the 18 million ounces that were produced here and you add it to the 35 million ounces that we have in resources, Torbritt is a 50 million ounce plus silver deposit. The grades in our current resource are 300 grams per ton. The production grades were closer to 500 grams per ton. So the opportunities for another tour group being found on the property, are very, very strong.

6:57 So I'll now pass this over to our chief geologist Rob Van Egmont. Who will walk you through, the geology of the area. Why Dolly Varden could host a large deposit like SK Creek. And I will also highlight that we're in the midst of a 10,000-meter drill program. We're going to have a very, very results rich Q4 and potentially late Q3. So with drills turning and with an active exploration program, we're well funded. We've got 20 million in the bank. So at this time now I'll just pass this over to Rob and you can walk us through some of the geology. Yeah, all right Sean, thanks. Yeah, so what we have on this map is the northwestern British Columbia And that big light swath is the belt of rocks that are known as the Hazleton Formation.

7:54 And that's a Jurassic-Aged, Jurassic-Triassic-Aged sequence of rocks. And then we have circled the mines that we just that Sean just talked about. And you can see Dolly Varden down there in the southern portion of that. And we're going to zoom in with this next shot to show where the Golden Triangle sits within that. So you can see Dali Vardhan in the center there, the golden triangle is highlighted mainly on the western side because that's where the larger deposits are and where most of the activity has been. And again it's the golden triangle but as Sean pointed out it's produced a lot of silver which hasn't necessarily been the focus, because it's gold has more of the value, but a lot of ounces of silver has been produced.

8:45 So I'm just going to go over the structure of the geology and the ages and mineralization style, just to show where we sit in that whole sequence and why this is such a well-endowed metallogenic belt of rocks. So the Hazleton is a sequence of volcanic and sedimentary rocks. They were put down in the Jurassic time, like I said before. Most of the precious metal deposits in the Golden Triangle are within the Hazleton. And why this is, is because during the Jurassic period, the fluids were able to be emplaced into the rocks because it was going through a period of expansion. So during the tectonics at that time, there was a shift in plate movement direction.

9:32 And what happened instead of plates converging, there was a little bit of a shift and things started to expand. And when you get expansion in the tectonics, that's when structures open up and mineralizing fluids can come up and make the deposits. So the silver is in the hazel tin is because silver is a major component, a major metal within those mineralizing fluids along with gold, lead and zinc. So this is a little cartoon drawing. It's of our property. It's sort of a conceptual layout of what's happening. So it's a cross section. And what you see is the red arrow shows the expansion direction. And that expansion is called the XSK rift period so during that time the the rocks were being pulled apart and You get these basin formations So you can see the blocks are down dropping and the structures along those the edges of those blocks is where you get your open sort of relief of pressure and you can start to have these fluids coming up. And the fluids are driven by deeper heat sources, intrusives and the magmas down deep. So you have sea floor type sediments as well as volcanics. The green, light green and dark green are volcanics.

10:55 And then when the basins form, you get quiet periods and you get sedimentation forming. So within this sequence of rocks, you have different styles of mineralization. You have mineralization such as torbrite, which is called volcanogenic. So that would be equivalent to Eskay style mineralization, where you have layers of mineralized fluids coming out on a seafloor and being deposited either in a volcanic environment or a sedimentary environment. In our case, it's volcanic. In Eskay's case, it's sedimentary rocks, so it's quieter rocks or a quieter environment. This is just a quick cartoon showing why there's different types of deposits within the Hazelton.

11:48 We have everything from these, it's the same fluids, but on the left side, you can see this is where they're coming out on surface. So you don't have any water over top and you get centers and that's what's called a true epithermal system. So a lot of veining, brecciation, and the precious metals are zoned out from the top down to the bottom. You have gold up top and silver and then base metals deeper down. In the centre, we have what's called a shallow marine environment. So you have a little bit of water over top, not necessarily a deep basin, but the pressure of that water is not enough to keep the metal within the fluid. So you're reaching the surface with these fluids and things are boiling so we have a lot of chaotic type features and this is this is sort of that the zone where Torbert sits there's a lot of brecciation a lot of mixing of layers being put down as well as being cross cut by veins.

12:51 And you still have your, your zonation of your metal, your Copper and Gold's a little deeper, and then your Silver is put out up top. And then on the far right, is your typical VMS, so that's the volcanogenic mass of sulfide. You're in deep water, so you have enough confining pressure that things aren't boiling and chaotic and the metals precipitate out due to, you know, hitting the cold water and you have enough pressure that they're not boiling. So you get nice layers and higher concentrations because things aren't cut up as much. And that's more typical of what you would see at Eskid Creek. And on this map, it just shows our property, and the green is the Hazleton Formation. You can see all the black dots are a lot of showings and trenches, things found back in the 20s, right up to the 70s and 60s.

13:48 So we have over 50 different showings and trenches on surface. And then in red is our 4 deposits that make up our resource, Torbert being down in the south there with Dolly Varden across the river. North Star and Wolf are also of the same style of mineralization. Wolf being the same style as Dolly Varden, more epithermal,

14:10 and North Star being close to what Torbert is like. So that is a layered sequence that is then cut by epithermal veins. So we have a lot of different styles of mineralization, but it's all confined to that Hazleton formation. And that's sort of just the highlight here is just to show that, you know, all the deposits are within the Hazleton and we're sitting right there, you know, it's the same environment with the same mineralizing fluids coming out, just different depositional environments. So this year, yeah, I just got back from camp and things are going smooth up there. We're having a good summer. The weather's a lot better than last year, so our production is phenomenal.

14:54 We've been working around Torbert. That's part of about half of our program this year is going to Torbert and looking around the edges to see where there's expansion potential, as well as filling in holes within our block model. And yeah, we're coming out with some nice surprises and things are working out well there. In the next week or so, we're going to move and do a little more exploration. So now that the snow has melted up high, we can go into some areas on our property where we have targets developed from last winter's modeling. So we're looking forward to hopefully opening up new areas. We'll be checking both the Hazleton formation for similar type deposits as Torbert. So we're looking for more of those basins similar to what Torbert sits in. And we're using geophysics that's seeing at depth and we're finding these structures and alterations underneath some of these sediments in the center of the valley.

15:57 Then also on the western side, we do have a little more epithermal style gold mineralization along with the silver. That's coming down from Homestake Ridge that Fury has up to the northwest there. We should be having some results coming in Q3, as Sean said, we've got our first set into the lab and the labs are doing everything they can to not repeat what happened last year. They're putting in more people and the turnaround time this year should be a lot better. Also a note that we also got to work about a month earlier this year than last year. So I anticipate results earlier in the season.

16:46 Yeah, with the clarity around COVID last year, we did get a little bit of a later start. Everyone was sort of wondering how to work around COVID, but this year, everything was all set and all the protocols are still in place for industrial camps. So, yeah, things are working on well. Things are working on well. This is just a little last zoom in just to show our exploration model. This is the Torbert style mineralization that we're going after here. It's a view across the valley, so you're looking east and at the slope rising up above. And Torbert is sitting just below surface there, dipping about 30 degrees to the north. And Wolf as well is a set of epithermal veins, but that basin structure around that, the architecture is similar to

17:34 Torbert, so it's also dipping down. The pink that's showing up on this view is our Potassic Alteration Zone, so you can see how it sits above Torbert, which is at the southern end of the alteration. Wolf, again, is at the southern end of another alteration zone. So that alteration is caused by those heated fluids, metal-bearing fluids circulating through the rocks. Even after that layer is being put down, and you have more volcanics deposited on top, these heat cells keep moving, and that's when you get your epithermal veins, which we're seeing native silver in on some of the drill holes coming from the project. So yeah, we're working our way down dip and down plunge and just checking the rest of the basin there.

18:28 This is our resource, current resource as of 2019. We've drilled another almost combining the last 2 years and this year we've drilled almost another 10,000 meters at Torbert, so things are looking in the positive direction for soon coming up with a new resource estimate. Just highlighting here, the main thing is Torbert. It's the majority of our ounces of silver within our resource, and That's why we are looking for that type of basin fill mineralization, because that's where you can get your larger deposits.

19:20 This is just a summary of everything. We're in the Golden Triangle, but the Silver portion of it is a very important part that really isn't highlighted in a lot of the projects. We happen to be a pure silver play, so that makes us a little bit of an anomaly in the whole scheme of things. Our ore is fairly clean, and we have a bit of lead and zinc, but it's mainly all our resources are stated at 100% silver. So yeah we have a good infrastructure, our recoveries are strong and we still have a lot of targets to look for. Yeah And that's that's the end of our program, or that's the end of the production or our slideshow.

20:10 And I hope you now understand why there's there's actually a lot of silver in the golden triangle. So we're calling it the silver triangle for now. Great, thank you so much. We're gonna jump right into the Q&A portion of the summit because there are a lot of questions here already. But to kick things off, can you just tell us a bit more about your current drilling? How is it going? Yeah, I mean, we're ahead of schedule in terms of our plan meters. Like I say, the production's been phenomenal, the weather's been cooperating, and We've got a well-oiled machine. We've had it for a couple of years now, so everything's running smooth. And we're just finishing up at our sort of phase 1, 1st part of Torbert, looking around the edges. And once we get some of those results back, besides what we can see visually, that'll guide us into our second half of the summer after the exploration work in drilling some more around Torbert, starting that infill.

21:12 We might be starting to get a little bit closer space to start moving our resource categories up from inferred and indicated to measured. And just further to that, the goal here is we've got between these 4 deposits, we've got our resources. We're focused around Torbrett, where the 35 of the 44 million ounces are at Torbrett. So we're looking around Torbrett. We're trying to extend, infill, expand. And what's really going to move the needle for us in addition to incrementally growing Torbritt is finding a new zone around Torbritt or as we move to these exploration targets, finding whole new areas, the next Torbritt. So we've stated a goal of getting to 100Moz.

22:04 We're halfway there and we're funded to test all the targets that we have. Great, thank you. So why is it that Silver is found in some of the Hazleton deposits and not in the others. Where does the silver come from?

22:23 The silver is in the mineralizing fluids and why some areas might have more silver than other, A big part of that is sort of that diagram I had that shows the 3 different styles of deposits. So you can have possibly silver down deeper, but you're just not finding it because it comes out of solution sooner. Or in terms of what percentage of epithermal versus versus volcanogenic so exact for example Bruce Jack yeah they're silver there in terms of ounces so far it's sort of an equivalent ounce for ounce production compared to gold, but value-wise, obviously, it's a lot less. But that's a more epithermal system. So that's going to have a little bit more gold in that volatile system, whereas SK, which had a large component of silver, That's more of that quiet, volcanogenic, laid down on the seafloor type of deposit, so you're going to get more base metals and silver there. But it also depends sort of where you are. I mean a lot of this is spread over 100 kilometers, So some of these heat cells might just have a bit more silver in it, in our case, at the southern end.

23:37 And as you move north, perhaps there's a little less silver within those fluids. So it's a combination of things. All right, thank you. Adrian wants to know, what role do glaciers play with respect to where and how minerals are found? Well, there's, Sean alluded to it, there's been a lot of glacial melt. So, you know, things that I was looking at when I was in university in the 80s, we would find beautifully mineralized boulders at the foot of a glacier, and looking back now, you are going back to some of these properties, the glaciers retreated a kilometer, so you know, where you couldn't couldn't necessarily find the source of these boulders before, now that rock is exposed, you know. An example is Big Red there, up around the, it's in the Golden Triangle, up around Telegraph Creek.

24:34 That was visible gold and rocks. So, and back in the 80s, we couldn't find the source, but now they're starting to find where it's coming from because the glaciers have retreated. So,

24:46 On the coast, the big thing about glaciers is that they're melting. Whereas, you know, in the Arctic, for example, glaciers play a big role in your to have to figure out what direction it's coming from and they're all gone. But that's a little more of a puzzle that way. Here it's pretty simple but you just know which valley it's in already because the glacier's there. All right thanks. Richard is asking when do you plan on uplisting in the U.S. To QB or the QX from Pink? Good question, Richard. Thank you. So, you know, when I came in as CEO in February of 2020, you know, we were a company that was trading and Our trading was measured in the tens of thousands of dollars a day, and I'm happy to report that's up about 10x.

25:39 You know, we're now measuring liquidity on daily volume in the hundreds of thousands of dollars a day. And so it's, you know, a big part of my goal and my continued mission at Dolly Varden is to continue to bring liquidity and openness up to bigger and better markets. And, you know, we've also been consulting with legal counsel about some new rules coming into the pink sheets. So it is something that we're actively looking at. And to just know that whether it's Frankfurt, whether it's US, whether it's Canada, you know, liquidity and, you know, our shareholders are top of mind and we're always working at providing more. Great, thank you.

26:25 Another question from Adrian is asking how much downtime is involved on average when you move a drill to a different site? Well, it's only a few hours. From when we shut 1 hole down, if we're moving to a different pad, currently we do maybe 3 holes off of a pad just because we're doing closer spacing at Torbritt. But if you're moving from 1 pad to another, yeah, it's literally a couple hours. So we do try and monitor what time of day it is because obviously you can't move at night. So we try and make sure that we shut the hole down with enough time to move before dark. So yeah, it takes about an hour to pull the rods. And during that time, they're already packing things up. Helicopter shows up and starts moving things.

27:15 And it's about 15 quick little hops and you're drilling. Wow, great, thank you. Richard is asking if you can explain the ownership pie chart saying that the gray shades are similar. Is your free float retail 13% or 53%? Richard, another good question. And actually, based on this question, I'm going to make a change to our color on our slide deck. 53% represents institutional ownership. So the 13% is the retail float. And so, you know, we've got something quite unique in that, you know, over 85% of the stock is held. Really, if you really look into the institutions, Eric Sprott's ownership, there's probably 6 shareholders and 1 corporate in there in terms of Hecla that control that 85%.

28:07 So to answer your question, 53 represents institutional, 13 retail. And I'm going to make a color change based on that question. Thank you. Another question from Adrian. He's asking, do you use just 1 assay lab and how do you choose which lab to use? Yeah, we use just 1 assay lab. We choose the lab based on availability, like close to the project, as well as turnaround time. But the most important one, obviously, is the quality of the assay. So if you go with a reputable lab that has a lot of backup, you're always safe. We do quality checks, so we do what's called round robin third party checks, so after a year of drilling or maybe 2 years before we do a resource estimate, we take about 5% of all of our samples, the pulps, and send them to another lab.

29:08 And that's just a quality assurance that the assays from the lab you've chosen are within range, So then you compare the 2 of the same sample. And that often proves that things are on track. And so you can have confidence in the lab you've chosen. But a lot of it also has to do with shipping time to the lab as well as turnaround time for the assays. Okay, thank you. Mike wants to know, how are the fires affecting your operations? There's no, like I said, I just came down, I drove down and there's no smoke until halfway down the province. So we're well north of any smoke. The only effect it might have is that some of the helicopters have to go south to fight fires. So It hasn't affected any projects in the area.

30:03 There's enough helicopters to go around, but there's no extra. In other years, we might have 1 or 2 sitting at the base for other little projects, but now those helicopters have gone south to fight fires. But in terms of smoke and access, there's nothing going on up north. Okay, great, thank you. Our next question is, what is the operating cost and cutoff grade considered in the resource estimate? Also, what is the silver price considered in the resource estimate? Yeah, so the operating costs, I don't think we went that in depth in the 2019 resource. It's sort of an earlier stage resource. Once we start throwing economics in it, that'll probably be the next step. Our cutoff was 150 grams silver.

30:54 And I think the silver price was 17, wasn't it, Sean? Do you remember? Yeah, it was around 17. It was around 17. Yeah. Okay, great. Thank you. Adrian wants to know, do you have any interactions with Indigenous groups in the area? Yeah, we usually have that slide in our presentation. We are in the Nishka traditional territory, which is just outside of the Nishka own lands, the Nass Valley. So yeah, about a third of our workforce is from the Nishka. They're, We're working with them. They're starting up companies and getting quite involved in the resource sector. So yeah, we have a lot of interaction on a daily basis.

31:41 And it works out very well for everyone. We have a good relationship. That's great. Our Next question is, is there a plan date for a resource estimate? So I'll answer that. The goal here, you know, we raised a considerable amount of money in relation to the market cap of the company last year. You know, again, we started 2020 with a $20 million valuation, we raised $27 million in 2020. So the goal with that money was a 2 year plan. And so when we get to the end of next season, we'll look at potentially updating and upgrading the 43-101, but there is no definitive date that we've put in the calendar.

32:28 Okay, thank you. Ernst wants to know, are you considering financing through silver streams? So you know, I've lived through 1 very, very strong and worked through a very strong resource market where it was possible through equity, not debt, not streams to fund your project. So I think we're moving into an environment that's going to be similar to what we saw in 2010, which was probably historically the best mine finance market of the last 100 years, where you could raise $100M or $200M via an equity financing to develop your project. So, we want to maximise the opportunity to the investor. And that's why we creatively raised money last year through equity. We have no debt.

33:16 We are unencumbered by any streams. And we're going to continue in that manner. Great. Thank you. Last question here before I have to wrap up. Can you give us an idea of a typical drill intersection? Yeah. And this is what attracted me to Delhi Vardana. A typical intercept is, you know, 30, 40, 50, 60 meters of 3, 4,500 grams silver. So it's wide, it's rich, it comes to surface. So it's not unusual. I think one of our bigger intercepts last year, and Rob, correct me if I'm wrong, was something like 30 to 40 meters of plus 300 grams silver. And it wouldn't surprise me if 2021 produced numbers like that.

34:06 Yeah, that's about right, yeah. Well, and the nice thing about it, if you look at a typical intercept, that's the average, but within that you have high grade intervals of over 1000 grams. So the key there is that that whole interval is amenable to bulk underground mining because you're so thick and we've done some you know preliminary looks at what type of mining works at Torbert and the large stopes work quite well because of that, those thicknesses. So what it does is it averages all your high grades and your medium grades out to an average of 3 to 400 grams silver per ton. Great, thank you so much. Well thank you Robert and Sean for taking us through your presentation and the Q&A. And thank you to everyone who submitted questions and joined us today.

34:56 If you do think of a question afterwards or you didn't get your question answered during the summit, we will be emailing out a short survey and the Dolly Barton Silver team will be happy to follow up with you directly. And of course, you can find more information on their website, www.dollybartonsilver.com. I'll pass it back to you, Sean, for the final word. Yeah, thanks so much, Dasha. Yeah, just this lastly, we've got tremendous catalysts to come here by way of drill results. So and we're very active on social media. And we love we love interacting with shareholders. So we've had this contact page up. Please reach out to us and follow us. We're really excited about reporting results after Labor Day and going right into Q1.

35:45 You