A Young Silver Company Holds 100% of a
Major British Columbia Property
with Eskay Creek Gold-Silver Potential
November 10, 2012
DOLLY VARDEN SILVER CORPORATION
FORWARD LOOKING INFORMATION Certain of the statements and information herein constitute “forward-looking statements” or “forward-looking information. Any
statements 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” or
variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be
achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be
forward-looking statements or information. Forward looking statements or information relate to, among other things: the
Company’s business objectives and plans.
Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors
that 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 funds
may not be raised; the speculative nature of exploration and the stages of the Company’s properties; the effect of changes in
commodity 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 the
factors that may affect any of the Company’s forward-looking statements or information. Although the Company has attempted
to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not
to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking
statements or information.
The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions
of management as of the date hereof, and other than as required by applicable securities laws, the Company does not assume
any 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.
Precious metal-rich Eskay Creek potential
with
Past-producing silver mine
• Confirm and expand historic silver resources with
the goal to define 40 to 50 million ounces of Silver
and re-activate the historic Dolly Varden silver mines,
in northwestern BC
• Explore a major untested Eskay Creek-type gold &
silver target at Dolly Varden (Eskay Creek production
of 3.6 million oz. Gold, 180 million oz. Silver)
• Management team and a strategic partner are
experienced in both Eskay Creek-type exploration
and re-activating past producing mines
Two strategies for creating value
John King Burns
Chairman
• Former CFO of Drexel Burnham Lambert Commodity Group
• Former managing director of Barclays Metals Group
• 30+ years of extensive capital markets and resource sector experience
Ron F. Nichols, P. Eng.
President & CEO
• 30+ years (20 years with Cominco) of exploration and development experience including Valley Copper and Snip Mines in BC
• Recently re-started Ag-Cu-Pb-Zn La Negra Mine, Mexico and silver Shafter Mine, Texas
Paul J. McGuigan, P. Geo.
VP Exploration
• Principal of Cambria Geosciences Inc., formerly with Esso Resources
• 35+ years of experience in mineral exploration and mining operations
• Active in BC exploration since 1974
Allen Ambrose, P. Geo.
Director
• 30+ years of exploration and mining experience
• Co-discoverer of Brisas del Cuyuni gold deposit
• Director/Co-founder of multiple resource companies incl. Minera Andes
Allan Marter
Director
• 30+ years experience as a Chartered Accountant and CFO of various mining companies, including 7 years as President of EURO Resources S.A.
• Former Director of Minera Andes
• Experienced in exploration, development and operational stages.
Theo Sanidas
Director
• 10+ years of mining industry experience
• Extensive capital markets background
• Experience with M&A, financing and corporate restructuring activities
Experienced Management & Board of Directors
Dolly Varden Silver Corporation - TSX-V:DV
Issued Common Shares 100,437,000
Options:- 500,000 @ $0.20
6,350,000 @ $0.25
750,000 @ $0.35
7,600,000
Warrants :- 5,000,000 @ $0.10
4,303,000 @ $0.15
793,000 @ $0.25
7,200 @ $0.40
10,103,200
Fully Diluted Shares O/S 118,140,200
Basic cash* $2.4 MM
Market Cap (Basic @ $0.22/share) Approx. $22 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
Capital structure
• Acquired 20 million shares for a 19.9% interest
• Hecla has the right to maintain their 19.9% interest
• Hecla has right to nominate one person to the DV Board of Directors
• Hecla will nominate one person to DV Technical Committee
• Strong strategic partner with 100 years of silver mining experience
• Flagship Greens Creek mine in same geologic setting as Dolly’s
Precious Metal Rich VMS target creates synergies for exploration.
Strategic Partner – Hecla Mining Company
Dolly Varden – Solid Foundation
%
owned • property acquired in Spring 2011
• 9,400 hectares (94 Km2)
• 2 historically active mines
• 2 deposits with development
• native land claims settled
Dolly Varden – Rich History
M Oz Ag* • Historical production
• Well understood targets
• Region with world-class projects
• Experienced senior management
*Historical production
Dolly Varden – Rich History
Surrounded by world-class projects
Major nearby projects:
• Eskay Creek (Barrick) Historic Production
3.6MM oz Au + 180MM oz Ag
• Silback Premier (Ascot) Historic
Production
2.2MM oz Au + 44.2MM oz Ag
• Brucejack (Pretium)
• KSM (Seabridge Gold)
• BC Moly (Avanti)
Dolly Varden
Eskay Creek
KSM
Brucejack - Snowfields
Silbak Premier
BC Moly
Snip
Located in the Stewart Complex
typical mineralization for the region Dolly Varden / North Star
Brucejack
KSM
Granduc
BC Moly
Big Bulk
Wolf
Torbrit
Eskay Creek
Silbak-Premier
Hazelton Group Arc assemblage (green)
Host to base and precious metal deposits
220M+ oz Ag produced historically
7M+ oz Au produced historically
Deposit Operator Country Tonnage Grade
(M t) Au(g/t) Ag(g/t)
Canadian VMS Deposits
Eskay Creek Barrick Canada 2.5 44.4 2087.7
LaRonde Agnico Eagle Canada 43.5 4.2 52.1
Horne Noranda Mines Canada 54.3 6.1 13.0
Bousquet Agnico Eagle Canada 29.7 5.3 2.1
International VMS Deposits
Hassai La Mancha Sudan 6.2 10.0 —
Greens Creek Hecla USA - Alaska 11.2 4.2 560.9
Abyz Kazakhmys Kazakhstan 4.4 6.5 61.0
Boliden Boliden AB
Sweden 8.3 15.1 48.3
Mt. Morgan Norton
Goldfields Australia 80.7 3.7 0.7
*Dubé et al, Geological Survey of Canada
World-class Gold - Silver VMS deposits with plus
1 million oz. gold in production & reserves*
• 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
Excellent infrastructure – via Alice Arm
extensively mapped by current management
Extensive exploration by
previous owners:
• 631 diamond drill holes
• 44,090 meters of drilling
• 7 km underground
development
• 1980’s Engineering
studies on mine, mill,
and tailings design
Purchase of Property for
$2.5 million translates into Acquisition cost of $0.20 per oz. of Silver
Historical resource estimate*:
5.7M oz. Ag Proven + Probable
8.8M oz. Ag Possible The qualified person has not done sufficient work to
classify the Historical Estimates as current mineral
Resources or Reserves. Furthermore, the issuer is not
treating these Estimates as current Mineral Resources
or Mineral Reserves.
*Derry Michener Booth & Wahl (1986)
Foundation for Dolly Varden’s plans
Creating significant additional value
Validation and expansion
of historic silver
resource estimates to 40
to 50 million oz.
Targeted
exploration
programs
Identification of new,
major Eskay Creek-type
gold and silver deposits
GOLD-SILVER SILVER
“the best new mines
near old mines” are often found
3D topography with deposits and showings
Location Historic Resource Classification
Tonnes Silver Grade (g/t)
Contained Silver (ounces)
Dolly Varden Mine – (a) Proven & Probable (P & P)
42,638 754.3 1,034,000
North Star Mine – (b) P & P 128,437 401.5 1,657,867
Torbrit Mine – (c) Possible 786,531 312.0 7,889,700
Wolf No.1 Zone – (d) P & P 77,932 395.0 989,626
Wolf No.2 Zone – (e) P & P 218,512 285.9 2,008,839
Wolf No.2 Zone – (f) Possible 100,295 279.4 901,031
Total P & P Possible
5,690,331 8,790,731
Geology and Mineral Exploration of the Dolly Varden Property, British Columbia,
Canada Sept. 5, 2011, as revised. By Terry Garrow - Filed on SEDAR.
* Derry Michener Booth & Wahl (1986) See Note 4 and additional disclosure on Pg 15
Historic mineral resources* (dilution at 10 – 16%)
All cut off grades 171 g/t silver
* Notes on Historic mineral resource estimates
Comments:
a: Skerl (1964) and Mann (1974) Dolly Varden Mine staff. Remaining resource blocks are in proximity to mined out stopes
and 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 the
glory 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 drilling
is required prior to placing reliance on this information.
Note 2: Historic Resource Classifications used in mineral resource estimates at the Dolly Varden deposits termed blocks
with closely spaced drilling and bulk sampling data "Proven and Probable Reserves" and made allowances for mining
operations and dilution. However, significant additional technical work is required. In the current terminology these
blocks would be termed Measured and Indicated Mineral Resources, however, for the purposes of this Technical Report
they are to be considered Geological Information only and subject to verification by drilling and sampling, prior to
reclassification.
Note 3: Historic Resource Classifications used in mineral resource estimates at the Dolly Varden deposits termed blocks
with more widely spaced drilling "Possible Reserves". In the case of Torbrit, Thompson and Pearson (1981) reduced the
confidence to Possible because the closely spaced drilling data must be subject to considerable check drilling. In the
current terminology these blocks would be termed Inferred Mineral Resources, however, for the purposes of this
Technical Report they are to be considered Geological Information only and subject to verification by drilling and
sampling, prior to reclassification.
Note 4: The Qualified Person has not done sufficient work to classify the Historical Estimates as current Mineral
Resources or Mineral Reserves. Furthermore, the Issuer is not treating these Historical Estimates as current Mineral
Resources or Mineral Reserves.
*Notes from Geology and Mineral Exploration of the Dolly Varden Property, British Columbia, Canada
Sept. 5, 2011, as revised. By Terry Garrow - Filed on SEDAR
* Validation and expansion of historic mineral resources
potential for mineral resource upgrade and expansion
Wolf Mine Looking NNW
Dolly Varden Mine
Torbrit Mine North Star Mine
• 4 targets
• Mineralization zones of
5-20m true widths
• Potential for high grade
silver at depth
• Focus on Wolf, Dolly
Varden, and Torbrit
* Notes on Historic mineral resource estimates
“the Dolly Varden deposits
to the precious metal-rich Eskay Creek deposit”
may be silver-rich analogues
(Dunne and Pinsent (2002) of the BC Geological Survey Branch)
BC Geological Survey Branch
* Areal Size Comparison to Eskay Creek
Dolly Varden feeder zone much larger than Eskay Creek feeder zone (shown at same scale)
Dolly Varden
Silver
DollyVarden
SilverNew VMS exploration target
vertical footwall feeders mineralize horizontal ocean-floor strata
1
Eskay Creek Deposit Model
with comparable geological
features at Dolly Varden
New VMS exploration target
* VMS deposit identification
3D map-red
zone
Dolly Varden Mine
Wolf Mine
• 5km strike length of
strong feeder style
alteration on the property
• Potential for gold-silver
VMS at depth beneath
intense Red Point alteration
zone
Looking NNW
Surprise
potential for new Eskay Creek-type deposit
* 2012 exploration program completed
a basis for further value creation
Dolly Varden Mine – Diamond Drilling • Oriented core - diamond drilling completed 6 drill holes for a total of 1,728 meters, during a
weather shortened season.
• Additional drill pads constructed for use next year
Red Point Surface Exploration • Surface mapping and sampling employed to gather lithogeochemical and trace element
information on the Red Point alteration – feeder system
• Historical diamond drill core recovered for further studies
Surface Exploration & Airborne Surveys • ZTEM + Magnetic Helicopter-borne geophysical surveys completed early October 2012
• Data delivery pending & Modeling underway on 2010 and 2012 Airborne programs
• Geological mapping and sampling in Moose Lamb, area east of Torbrit: Extensive alteration and mineralization similar to nearby Torbrit discovered
• Geological mapping and sampling in Surprise area, west of Wolf:
* 2012 exploration program completed
a basis for further value creation
Torbrit Mine Rehabilitation • Underground access safely achieved for majority of 1025 level and upper sub-
levels
• Historical survey control re-established and transformed to 2012 survey base
• Historical underground development & stoping data assembled and 3D modeled employing the 2012 survey base – guide to confirmation drilling
Torbrit Mine Exploration & Permitting • Underground mapping and sampling done in selected areas
• Surface diamond drill pads constructed for use in pending definition drilling phase
• Environmental water sampling conducted with favorable good quality water discharge results on Torbrit underground
• Rehabilitation of 1025 level and favorable water sampling results will allow for Permitting of underground development and diamond drilling
* Torbrit Mine 2012 Underground Mapping and Sampling
* 2012 Exploration targets Dolly Varden – Torbrit – Red Point
* Dolly Varden to Torbrit – Longitudinal Section
* 2012 Proposed Drilling – Dolly Varden area
* Torbrit – 1025 Level – Historic Drill Results
* Use of Proceeds – Stage One Program
Dolly Varden 2012 Work Program Budget
Road & Bridges - Km 1 to 24 $ 824,750.00
Preparation & Mobilization $ 75,000.00
Program Support & Logistics $ 1,018,000.00
Geoscience Program $ 341,000.00
Drill Program – 8845 meters $ 2,641,450.00
Geotechnical & Environmental Program $ 298,000.00
Road & Bridges - Km 24 to Torbrit $ 33,000.00
Geotechnical & Environmental Program $ 172,800.00
Airborne Geophysical Program $ 210,000.00
Underground Rehab & Prep Work - Torbrit $ 950,000.00
Total Recommended Program: $ 6,564,000.00
2012-13 Objectives – Longer Term Milestones
2012-2013 Objectives • Increase silver resources at Dolly Varden and Torbrit deposits by drilling down
plunge of known Historic resource blocks.
• Limited infill drilling and underground sampling to begin to convert Wolf historic resources, and 2011 drill results to 43-101 compliant categories.
• Refine Eskay target on Redpoint with geochemistry, alteration studies and geophysics (VTEM) prior to drill testing (minimum 3 holes in 2012)
Longer Term Milestones (success contingent) • SILVER MINERAL RESOURCES: Increase Historic resources at all 4 deposits
from current 14 million ounces to 45 to 50 million ounces of NI 43-101 compliant resources.
• ECONOMIC STUDIES: Success contingent on defining 45 million + ounces, initiate scoping & feasibility studies to determine the economic viability of a 1,000 to 1,500 tonne per day operation.
• EXPLORE ESKAY TARGETS; Continue to develop Eskay targets towards discovery
Corporate Overview
• 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 is experienced in both
Eskay Creek-type exploration and
the re-activation of old mines
• 2012-13 proposed diamond drill program of
8,900 m to confirm and expand silver resources
and define and drill Eskay-type targets.
Corporate Overview
Dolly Varden Silver Corporation TSX-V:DV Suite 910 – 355 Burrard Street Vancouver, British Columbia, www.dollyvardensilver.com Canada, V6C 2G8 Tel: 778-383-3083 Toll free: 1-855-381-3530 Ron F. Nichols President, CEO & Director Direct line: 604-398-4345 Investor Relations Strata Star – Gary Lindsey Tel: 1-720-273-6224 Email: [email protected]
Contact Information