Latest / Financial Survival Network / Dolly Varden FindsHigh-Grade Gold/Silver at Homestake with CEO Shawn Khunkhun

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Dolly Varden FindsHigh-Grade Gold/Silver at Homestake with CEO Shawn Khunkhun · Financial Survival Network

• 0:00
  Speaker 1: I'll be honest with you, I was a little nervous.
• 0:02
  Speaker 1: I was a little nervous because, you know, we were
• 0:04
  Speaker 1: setting the bar so high with the results we were
• 0:07
  Speaker 1: coming out with, and you want to you know, you
• 0:10
  Speaker 1: want to be increasing and increasing and increasing, and I thought,
• 0:13
  Speaker 1: how do we do this? And the results that we
• 0:16
  Speaker 1: put out yesterday, we're getting one ounce gold over twelve
• 0:22
  Speaker 1: thirteen meters, We're getting thirty meters of you know, a
• 0:26
  Speaker 1: third of an ounce. You know, it's it's just incredible numbers.
• 0:31
  Speaker 2: The Financial Survival Network now more than network, the Financial
• 0:39
  Speaker 2: Survival Network.
• 0:42
  Speaker 3: And welcome. This is Financial Survival Network. I am your host,
• 0:46
  Speaker 3: Kerrie Lutz. Major sponsor update from Sean kuon Kuhn, CEO
• 0:51
  Speaker 3: of Dolly Morden Silver. I mean, Sean, you've got you've
• 0:55
  Speaker 3: been like on a high for months here with these
• 0:58
  Speaker 3: drill results.
• 1:01
  Speaker 1: Harry's it actually feels like four years really. You know,
• 1:05
  Speaker 1: it was in year one I thought, wow, fantastic, and
• 1:10
  Speaker 1: then there was this expectation to try to live up
• 1:12
  Speaker 1: to the first year's results. And then it was like
• 1:15
  Speaker 1: it was almost relief when year two's results were really good.
• 1:20
  Speaker 1: And then by year three, I thought, oh, there's no
• 1:22
  Speaker 1: way we can keep up on this trajectory. And we did,
• 1:26
  Speaker 1: and then and then this year, like you know, it
• 1:31
  Speaker 1: started in June, and I want to take you back
• 1:34
  Speaker 1: to the DROLL program. There was three.
• 1:38
  Speaker 2: Goals of the DROLL program.
• 1:39
  Speaker 1: Goal number one was to try to find new veins
• 1:42
  Speaker 1: outside of the resource right, and when we came out
• 1:45
  Speaker 1: of the gate, I thought, oh wow, here we are again.
• 1:48
  Speaker 1: You know, right in the beginning endings of the DROLL program,
• 1:52
  Speaker 1: we were having success. We came up with big numbers
• 1:55
  Speaker 1: at the Moose Vein, at the Chance Vein. So what
• 1:57
  Speaker 1: we were showing there Carrie is still he's got this
• 2:01
  Speaker 1: rich history, you know, rich production, richest silver mining in
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  Speaker 1: the British Empire, Canada's third largest silver producer. And we
• 2:09
  Speaker 1: were really trying to show that this project could expand
• 2:14
  Speaker 1: into new discoveries. And that's what the June drill results
• 2:16
  Speaker 1: were all about. So I thought fantastic. And then when
• 2:19
  Speaker 1: we went into this wolf deposit, this is where we
• 2:22
  Speaker 1: used the directional drilling, and we were it looks like
• 2:26
  Speaker 1: this deposits getting wider, it's swelling as we get deeper,
• 2:30
  Speaker 1: and the grades are doubling. You know, we're seeing those
• 2:33
  Speaker 1: three four hundred grand per ten silver grades go to
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  Speaker 1: five six even a kilo a kilo silver over ten meters,
• 2:40
  Speaker 1: So you know, we were hitting the new veins. We
• 2:44
  Speaker 1: were expanding Wolf and then Homesteak, and I, uh, I'll
• 2:51
  Speaker 1: be honest with you, I was a little nervous. I
• 2:53
  Speaker 1: was a little nervous because you know, again you know,
• 2:57
  Speaker 1: we were setting the buy so saying the bar so
• 3:01
  Speaker 1: high with the results we are coming out with, and
• 3:03
  Speaker 1: you want to keep you know, you want to be
• 3:07
  Speaker 1: increasing and increasing and increasing, And I thought, how do
• 3:11
  Speaker 1: we do this? And then boom the numbers that we
• 3:14
  Speaker 1: had exceeded my expectations. This is starting to run remind
• 3:19
  Speaker 1: me of New months Bruce jack Mine. You know, they're
• 3:22
  Speaker 1: percing three hundred thousand ounces of ten gram gold material
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  Speaker 1: just north of our property. And the results that we
• 3:30
  Speaker 1: put out yesterday, we're getting one ounce gold over twelve
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  Speaker 1: thirteen meters. We're getting thirty meters of you know, a
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  Speaker 1: third of an ounce. You know, it's just incredible numbers.
• 3:45
  Speaker 1: And we've really identified now this super high grade corridor
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  Speaker 1: of both silver and now silver gold and gold mineralization.
• 3:57
  Speaker 3: So going back to home mistake that was an acquisition
• 4:01
  Speaker 3: that you did several years ago. And at the time,
• 4:06
  Speaker 3: you know, the market was in the doll drums. The
• 4:09
  Speaker 3: price of gold hadn't broken out yet, the price of
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  Speaker 3: silver hadn't and yet there was still synergy there and
• 4:18
  Speaker 3: the share price held up even after the acquisition, which
• 4:22
  Speaker 3: showed the market was confident. So obviously you never know
• 4:25
  Speaker 3: till you drill there. But it's turning out that this
• 4:30
  Speaker 3: acquisition kind of a master stroke.
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  Speaker 1: Well, it's interesting. When I first got into Dolly, and
• 4:39
  Speaker 1: this is before I signed up a CEO, I actually
• 4:41
  Speaker 1: called the chairman of what was then called Orn Resources,
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  Speaker 1: which is now called Fury Gold Mines, and I called
• 4:50
  Speaker 1: Ivan Bebick, who's now subsequently come on as an advisor
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  Speaker 1: to Dolly, and I said, Ivan, you know, is there
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  Speaker 1: a deal to be done here? Like you know, I
• 4:58
  Speaker 1: was an outsider look in at this this area in
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  Speaker 1: northwest BC, and I was looking at this area, looking
• 5:04
  Speaker 1: at Bruce Jack sk Creek and Premier and I thought,
• 5:07
  Speaker 1: this Dolly of Arden, it looks like it could be
• 5:09
  Speaker 1: the next big one in the Golden Triangle. And I thought, well,
• 5:13
  Speaker 1: we don't even need to find it. It's already there.
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  Speaker 1: We just need to put it together. We need to
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  Speaker 1: marry it together with this homestake deposit. So I called
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  Speaker 1: up Ivan, and it was October twenty nineteen, and I said, Ivan,
• 5:23
  Speaker 1: is there a deal to do here? And he goes, yeah,
• 5:25
  Speaker 1: there is. And it took us some time, and it
• 5:28
  Speaker 1: took us, you know, some negotiating. It actually carry it
• 5:31
  Speaker 1: took two years. It took two years for us to
• 5:35
  Speaker 1: get to know each other and to kurt, you know,
• 5:37
  Speaker 1: advance our businesses, and then we consummated the deal. I
• 5:43
  Speaker 1: want to say it was. We announced it December of
• 5:45
  Speaker 1: twenty twenty one. We completed it in the spring of
• 5:47
  Speaker 1: twenty twenty two. And I'm very conservative, So the approach
• 5:52
  Speaker 1: I took was, what if it's not there? Because these
• 5:57
  Speaker 1: are resource estimates, right, these are proven, improbable reserves that
• 6:01
  Speaker 1: you're mining. These are resource estimates. So I said to myself,
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  Speaker 1: let's assume only twenty five percent of it's there. And
• 6:09
  Speaker 1: using that assumption, it was still wildly synergistic. And so
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  Speaker 1: here we are a couple of years later, and today
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  Speaker 1: I now have the confidence because of the drilling that
• 6:22
  Speaker 1: we've done. We now have the confidence that we believe
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  Speaker 1: that both the grade and the continuity is there, and
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  Speaker 1: the grades we think were understated. We think, and you
• 6:33
  Speaker 1: look at some of the results that we put up
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  Speaker 1: from Homestake, they've been spectacular. The best drill results that
• 6:39
  Speaker 1: have come out of the Golden Triangle in twenty twenty
• 6:41
  Speaker 1: two and twenty twenty three have been Dolly Varden. And
• 6:44
  Speaker 1: if you look at the results that were posted in
• 6:46
  Speaker 1: the first half of twenty twenty four, Dolly Vard. So
• 6:49
  Speaker 1: three years in a row, Dolly Varden has reigned supreme
• 6:53
  Speaker 1: in the Golden Triangle. And it's why the share price
• 6:57
  Speaker 1: for the investors who got behind me on day one,
• 6:59
  Speaker 1: it's why they're up seven hundred percent despite the fact
• 7:03
  Speaker 1: that the majority of the last five years, four and
• 7:06
  Speaker 1: a half years, the majority that we've spent in a
• 7:08
  Speaker 1: bear market. Up until April of this year, you know,
• 7:13
  Speaker 1: silver was sub twenty five dollars.
• 7:15
  Speaker 3: Right and now it hit thirty five. Gold just last
• 7:20
  Speaker 3: week hit twenty eight hundred and the economics and I
• 7:24
  Speaker 3: got to believe the outside interest in what you're doing
• 7:28
  Speaker 3: has got to be through the roof.
• 7:31
  Speaker 1: Well, listen, it's I can't you know, comment too much
• 7:36
  Speaker 1: on what's happening in the m and A space. But
• 7:40
  Speaker 1: what I can say is I'll cite some other deals
• 7:43
  Speaker 1: that are happening, you know, whether it's silver quests being acquired,
• 7:46
  Speaker 1: Gatto's being acquired. You know, Carrie, there's only thirteen producing
• 7:52
  Speaker 1: silver companies that make up the industry, and those thirteen
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  Speaker 1: companies are only valued at thirty seven billion dollars. And
• 8:00
  Speaker 1: you know, you look at the interest that's accumulating on
• 8:03
  Speaker 1: US debt every day, in thirteen days, it's the equivalent
• 8:08
  Speaker 1: to the entire silver mining industry. Every thirteen days, the
• 8:13
  Speaker 1: interest on the debt surpasses the silver mining industry. So
• 8:18
  Speaker 1: when people say, Sean, where do you think at price
• 8:19
  Speaker 1: of silver's going, Well, I'll answer that question when you
• 8:23
  Speaker 1: guys stop printing, right.
• 8:26
  Speaker 3: Sure, the sure likelihood of that happening. I wonder if
• 8:31
  Speaker 3: in our lifetimes that'll ever occur. But story for another day. So,
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  Speaker 3: now you found everything you were hoping for and more
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  Speaker 3: in homestake, what do you do for the upcoming drill program?
• 8:48
  Speaker 1: So we have a water result still to publish from
• 8:52
  Speaker 1: the drilling we've completed. So we completed about thirty two
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  Speaker 1: thousand meters a drilling, and about half of those meters
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  Speaker 1: went into the silver Rich all east side of the
• 9:00
  Speaker 1: project and then the other half went into the silver
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  Speaker 1: gold Rich homestake part of the project. And so we
• 9:06
  Speaker 1: still have a lot and used to come out number one,
• 9:09
  Speaker 1: number two with Carrie thirty four million in the bank.
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  Speaker 1: You know, we're in a position. We're armed with next
• 9:19
  Speaker 1: year's budget already in place, and I think that one
• 9:21
  Speaker 1: of the reasons the stock is done pretty good this year. Right,
• 9:25
  Speaker 1: it's twice the price it was in January. One of
• 9:28
  Speaker 1: the reasons for that is when positive things occur, when
• 9:34
  Speaker 1: those big discoveries come out of torbrit Or Wolf or
• 9:38
  Speaker 1: regionally or Homesteak, there's only one way for an investor
• 9:43
  Speaker 1: to get exposure to this name. We're not doing a
• 9:45
  Speaker 1: private placement, We're not doing a financing. You got to
• 9:48
  Speaker 1: come into the open market. And so, armed with thirty
• 9:52
  Speaker 1: four million in the bank, with drill results pending, with
• 9:57
  Speaker 1: next year's program fully funded, it's continued growth at dolly
• 10:03
  Speaker 1: Vart And I was doing an investor call this morning
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  Speaker 1: and the investor asked me, Sean, when do you going
• 10:08
  Speaker 1: into production? And I said, with all due respect, that's
• 10:12
  Speaker 1: the wrong question. You know, ask me what my strategy is.
• 10:16
  Speaker 1: Ask me what my vision is for the company, and
• 10:18
  Speaker 1: it's it's been what it was a number of years
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  Speaker 1: ago when I started, which is, how big can we
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  Speaker 1: get this resource? You know, a resource that was valued
• 10:28
  Speaker 1: at pennies announced on the ground five years ago, that's
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  Speaker 1: now being valued at dollars announced on the ground today.
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  Speaker 1: How many hundreds of millions of ounces of silver can
• 10:41
  Speaker 1: we calculate against that in situ or enterprise value pronounce
• 10:47
  Speaker 1: on the ground. And today, you know, the market's giving
• 10:50
  Speaker 1: us about a four hundred million dollar valuation Canadian It's
• 10:54
  Speaker 1: that's twenty times higher from where we started. So that
• 10:57
  Speaker 1: strategy has paid. It's paid to drill, it's paid to
• 11:01
  Speaker 1: acquire an unloved, underappreciated metal that's now starting to get
• 11:07
  Speaker 1: some real price discovery.
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  Speaker 3: Yeah. Well, you know they say in the market, every
• 11:11
  Speaker 3: dog has its day. Not that I would ever view
• 11:14
  Speaker 3: silver as a dog, but obviously the market did for many,
• 11:18
  Speaker 3: many years. But when I bought my first ounce of
• 11:21
  Speaker 3: silver back in nineteen ninety nine, I think I paid
• 11:27
  Speaker 3: somewhere around five or six dollars. Now it's thirty five,
• 11:32
  Speaker 3: and really resistance kind of gone mid thirties, you know,
• 11:39
  Speaker 3: thirty two thirty three is support for sure. And then
• 11:43
  Speaker 3: we're not even talking about gold. So you know that
• 11:47
  Speaker 3: the name Dolly Varden silver doesn't really tell the full
• 11:50
  Speaker 3: story anymore.
• 11:52
  Speaker 1: No, you're right, and listen, like I go back, I
• 11:56
  Speaker 1: look at where silver was one hundred years ago, and
• 11:59
  Speaker 1: you know, sent of the demand for silver was jewelry
• 12:03
  Speaker 1: or investment. You know today that that industrial side of
• 12:07
  Speaker 1: silver makes up about fifty five percent of the market.
• 12:12
  Speaker 1: So you know, I think silver in this environment where
• 12:15
  Speaker 1: you've got you know, the FED easing, you've got China
• 12:18
  Speaker 1: stimulating both the investment and growth side of silver's being.
• 12:24
  Speaker 1: You know that it's a two headed monster. It's it's money,
• 12:28
  Speaker 1: but it's also you know, a there is no substitute
• 12:31
  Speaker 1: for it. It's there's no substitute for it in solar.
• 12:34
  Speaker 1: You know, it's got a big component in evs. And
• 12:38
  Speaker 1: you know, the reality is, Carrie, we're not mining more
• 12:42
  Speaker 1: of the stuff. You know, we're we're we're losing two
• 12:44
  Speaker 1: percent a year on the production side, and we've lost
• 12:47
  Speaker 1: about fifty percent compared to where we were a decade
• 12:51
  Speaker 1: to go. So sober production is dropping off. We're down
• 12:55
  Speaker 1: to only producing eight hundred million ounces a year as
• 12:58
  Speaker 1: an industry, and we're only recycling another one hundred and
• 13:01
  Speaker 1: fifty on top of that. So it's it's a sub
• 13:04
  Speaker 1: billion ounce market that's got real demand, not the reported demand,
• 13:10
  Speaker 1: but the real demand is about fifty percent higher than that.
• 13:14
  Speaker 1: And that was during the dog days of silver, right,
• 13:20
  Speaker 1: that was what it was in a bear. I think
• 13:22
  Speaker 1: it's I think we're about we're on the verge of
• 13:25
  Speaker 1: an exponential move. I'm up here in Canada, so we
• 13:30
  Speaker 1: call these charts hockey stick charts because it starts here
• 13:33
  Speaker 1: and it goes there's and that's what I think.
• 13:35
  Speaker 3: We're on the verge of sean. You know, I'm just
• 13:38
  Speaker 3: looking at my notes. When we talked last few months back,
• 13:43
  Speaker 3: gold was right around twenty four hundred, Silver was approaching
• 13:48
  Speaker 3: thirty bucks. It just couldn't get past that thirty dollars.
• 13:52
  Speaker 3: It go over and then it ammeds immediately would pull
• 13:56
  Speaker 3: back over the next couple of months into the upper twenties.
• 14:01
  Speaker 3: Now Here we are, like I said, twenty eight hundred
• 14:05
  Speaker 3: dollars and thirty five and it seems like the party's
• 14:09
  Speaker 3: just getting started.
• 14:11
  Speaker 1: Yeah, and you know, like we've got a shareholder and
• 14:14
  Speaker 1: Eric Spratt that owns about ten percent of the company
• 14:16
  Speaker 1: that was instrumental and leading a couple of financings for US.
• 14:20
  Speaker 1: We raised about forty seven million dollars this year and
• 14:23
  Speaker 1: Eric led both those deals. And Eric talks about wanting
• 14:27
  Speaker 1: to be one of the first people to a party,
• 14:31
  Speaker 1: you know, not feeling uncomfortable being early, but making sure
• 14:36
  Speaker 1: that you're gone before it ends. And so you know,
• 14:42
  Speaker 1: Eric's got at one of his advisors, Bob Toombs, that
• 14:46
  Speaker 1: Raymond James has got something that he refers to as
• 14:48
  Speaker 1: the mining clock. And you know, you know the start,
• 14:52
  Speaker 1: you know at the clock at you know, one o'clock,
• 14:54
  Speaker 1: and you know the end of the party is about midnight.
• 14:58
  Speaker 1: You know, Bob thinks on the Rushes Metal side the
• 15:00
  Speaker 1: last time I talked to him that we're at maybe
• 15:02
  Speaker 1: six or seven o'clock. So we still got a long
• 15:05
  Speaker 1: ways to go. And you know, my experience in these
• 15:07
  Speaker 1: markets is most of the games occur in the last
• 15:11
  Speaker 1: few hours, and so you know, I just think we
• 15:15
  Speaker 1: haven't even seen a warm up. Wake me when Silver's
• 15:18
  Speaker 1: through fifty. I believe in triple digit solver and again,
• 15:24
  Speaker 1: and it's not that's not a crazy idea. When you've
• 15:28
  Speaker 1: got one central bank on a debt servicing. You know,
• 15:31
  Speaker 1: you had a government that's debt servicing at three billion
• 15:34
  Speaker 1: a day the interest it's insane.
• 15:37
  Speaker 3: It's nuts. Yeah. Well, hey, in a market where there's
• 15:41
  Speaker 3: a lot of questionable companies out there, Dolly Varden definitely
• 15:46
  Speaker 3: shines shines through as the real deal. So appreciate you
• 15:51
  Speaker 3: coming on the show as Olie Shan and you want
• 15:54
  Speaker 3: to visit Dolly Vardensilver dot com. Sign up for notifications
• 15:58
  Speaker 3: because with half their drill results are so still pending,
• 16:02
  Speaker 3: I'm sure there's going to be a lot of the
• 16:04
  Speaker 3: interesting results being released in the coming weeks ahead. Ticker
• 16:09
  Speaker 3: symbols in the US, l l F and of course
• 16:13
  Speaker 3: in Canada, dv shot. Always a pleasure. Talk to you soon, Gerry.
• 16:19
  Speaker 1: Thanks for having me on. All the best, especially tonight
• 16:21
  Speaker 1: with the election.
• 16:29
  Speaker 2: The Financial Survival Network