Dolly (DOLLF) - Copper discovery coming up?
Dolly Varden CEO, Shawn K. has been champing at the bit “for four years” to consolidate a play for exploration of the Big Bulk copper-gold porphyry. Dolly Varden already had rights to the northern half of the Big Bulk property, and recently Libero Copper has sold their 50% interest in the southern half to Dolly Varden. Now, Shawn K. gets his shot exploring the whole prospect.
The map below shows how the “Red Line” wends it way right down the western edge of the Big Bulk prospect, which after the consolidation is 100% controlled by Dolly Varden.
Jeff Kyba, a former geologist with the BC government, theorizes that the “Red Line” is the key marker for copper-gold mineralization in the Golden Triangle.
Early Exploration
Big Bulk has been the target of exploration for some years. In 2001-2003,Tech brought attention to Big Bulk with its drilling that produced two headline mineralization results of 21 meters of 0.86% Cu, 0.64 gpt Au ( = 1.998 gpt Au eq x 21m = 42gm ) and 53 meters of 0.31% Cu, 0.2 gpt Au ( = .689 gpt x 52m =36.5 gm), which were not followed up on.
Note that the combination of 0.86% Copper plus .64 gpt Gold converted to gold/ton equivalent, this would equal about 2.0 grams Gold per ton equivalent. Also, the 0.31% Copper plus 0.2gpt equate to 0.69 grams Gold per ton equivalent. If these equivalent grades were repeated in bulk volume, things could get interesting, perhaps worthy of earnest follow-up.
New Geologic Model
New interpretations based on recent geologic mapping by the British Columbia Geological Survey (BCSC) indicate that the Big Bulk target is actually a much larger calc-alkaline porphyry system tilted on its side with higher grade mineralization in a discreet mineralized phase that was not targeted by historic drilling
‘Re-Discovery Hole’
The discovery hole drilled by Libero Copper in Terry in October 2020 (BR-20-23) returned
a) 120 meters grading 0.34% Cu, 2.47 gpt Ag, 0.06 gpt Au ( = 72 gold gram-meters)*, including
b) 70.1 meters grading 0.41% Cu, 2.93 gpt Ag 0.07 gpt Au ( = 50.24 gold gram-meters)* including
c) 12.2 meters 1.02% Cu, 7.23 g/t Ag, 0.11 g/t Au ( = 120.5 gold gram-meters gold )*
*all the above excluding the credit for Silver (Ag)
At Big Bulk, the Terry porphyry copper target is peripheral to a distinct large magnetic-high feature over the Limpoke Pluton that coincides with a radiometric potassium anomaly, magnetic low, conductivity high, copper, gold, silver and molybdenum anomalies and a mapped Jurassic aged porphyry intrusion.
The age, rock textures, alteration styles and geological setting at Terry also shares similarities with other British Columbia alkalic porphyry deposits, including Galore Creek. The discovery is located just 8 km from road access at an elevation of 700 metres with relatively low snowfall.
Further Drilling
Following up its 2020 results, Libero did further work to qualify further prospects for evaluation and sometimes, drilling at Big Bulk. Multiple targets were assessed — foremost Terry, but also Copper Bowl, Ridge, East Ridge, and Poker as shown in the plot below of soils, rock chips in which multi-elements anomalies were found. More and more, smoke…
More work continued, furthering resolve particularly on the Terry prospect, but also the Ridge zone.
As shown below, Libero Copper did put in a few long holes that included significant hits (i.e. the pink spike lines >10000 ppm Cu), with BR-21-30 at 44 gram-meters gold, and BR-21-028 at 55 gram-meters gold equivalent.
Libero - Highest Focus Elsewhere
Libero Copper had a choice to make. On the one hand it had the largest copper resource in Colombia and one of the world’s largest undeveloped molybdenum deposits to develop. On the other, it had the perhaps lesser Big Bulk prospect, and a suitor, Dolly Varden, interested acquiring rights to develop it. And difficult financing given current market conditions the precluded doing both projects. So Libero chose to sell to Dolly.
Stalking Horse for by Hecla?
Downside protection for the Dolly Varden investor is provided by the complementary fit with the larger mid-tier miner, Helca. With Hecla having made a hostile take over attempt previously (2017?), and having increased its strategic stake to 15% equity ownership in fall of 2023, it seems likely to me that Dolly’s Shawn K.may be taking cues from Hecla management.
If in 2024 / 2025 Dolly Varden is successful in either
a) showing greater continuity and scale of high grade mineralization deposits along the trend between its gold dominant Homestake properties, and its silver dominant Wolf and Torbit properties, and/ or in:
b) confirming upside from copper-gold mineralization from the BigBulk property,
then we will have a catalysts to drive Hecla to financially acquire Dolly Varden lest some other major minor see an opportunity for a large, high grade, take-out of their precious metal smorgasbord.
Additional good news here may be that the large stakes in Dolly held by Fury (22%), Eric Sprott (7%) and institutional investors owning 47% will likely help Dolly’s board drive a hard bargain for shareholders.