Fury Gold cuts stake in Dolly Varden Silver by 7.4%
Fury Gold Mines Ltd. [FURY-TSX, NYSE American] said it has completed the sale of 17 million Dolly Varden Silver Corp. [DV-TSXV, DOLLF-OTCBB] shares for 40 cents each to a well-known institutional investor. The sale reduces Fury Gold’s stake in Dolly Varden by 7.4% to 33%.
Fury said proceeds of the transaction will be used to fund continued exploration at Fury’s Eau Claire deposit located in the Eeyou Istchee territory in the James Bay region of Quebec, and the Eleonore South joint venture, which is also located in Quebec.
On October 13, 2022, Fury Gold shares closed at 55 cents and currently trade in a 52-week range of $1.09 and 49 cents. Dolly Varden shares closed at 56 cents and trade in a 52-week range of 88 cents and 35.5 cents.
Fury continues to have two nominees on Dolly Varden’s board of directors and will continue to hold its remaining shares for investment purposes.
Dolly Varden owns 100% of the Dolly Varden Mines silver property in northwestern British Columbia. It covers 8,800 hectares and hosts four historically active mines.
The entire Dolly Varden property is considered to be highly prospective for hosting high-grade precious metal deposits since it comprises the same structural and stratigraphic setting that hosts numerous other on-trend, high-grade deposits, including Eskay Creek and Brucejack.
The property is also considered to be an advanced exploration stage property with targets that are well understood. However, the company has said mine restarts will require the discovery of additional silver resources and the confirmation of historic resources that were known at the cessation of mining in 1959.
Fury Gold Mines is the product of an October, 2020 transaction that saw Auryn Resources Inc. acquiring Eastmain Resources Inc. and forming Fury, a Canada-focused exploration and development company that is positioned in three prolific mining regions across the country.
Fury owns a 100% stake in the high-grade Eau Claire gold project which is situated on over 24,000 hectares in the Eeyou-Istchee/James Bay region. Eau Claire is one of five known deposits in the region with the largest of these, the Newmont Corp., [NGT-TSX, NEM-NYSE]-owned Eleonore mine, located 57 kilometres north of the Eau Claire project.
Eau Claire contains a measured an indicated open pit resource of 1.2 million tonnes gradeing 5.86 g/t gold or 228,000 ounces, plus an underground resource of over almost 3.1 million tonnes, grading 6.30 g/t gold over 625,000 ounces.
Drilling this year was designed to expand the high-grade Eau Claire gold deposit and follow up on the Percival discovery.
The Percival prospect, located 14 kilometres east of the Eau Claire deposit is currently represented by a 400-metre by 100 metre mineralized footprint hosted within folded sulphidized and silicified breccia in an interbedded volcanic and sedimentary sequence.
A recently completed survey covering 6.5 kilometres of prospective stratigraphy along the Percival trend identified 15 discrete gold anomalies with associated pathfinder elements.