Dolly Varden Silver Corporation Announces Signing of an Option Agreement on Musketeer Property

Thu Mar 21, 2013 10:49am EDT

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Dolly Varden Silver Corporation

March 21, 2013 - 10:49:06 AM

Dolly Varden Silver Corporation Announces Signing of an Option Agreement on
Musketeer Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 21, 2013) - 

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES

Dolly Varden Silver Corp. (TSX VENTURE:DV)(OTCBB:DOLLF) (the "Company") is
pleased to announce that it has entered into an option agreement (the
"Agreement") with Musketeer Developments Ltd. and certain other parties to
acquire 100% of the Musketeer Property (the "Musketeer") of northwestern BC.
This Agreement marks the Company's full consolidation of all the major,
developed silver prospects and past-producing silver mines in the Upper
Kitsault valley. With this acquisition, the Company is now able to drill test
the down-plunge extensions of the Torbrit mine that was historically the
largest silver producer in the Upper Kitsault valley.

The Musketeer Property

The Musketeer Property is comprised of both fee simple surface and
undersurface mineral interests. 

The Company's 100% owned Dolly Varden silver property completely surrounds the
Musketeer. Importantly, mineral tenures of Company's historic silver mines at
the Torbrit, Wolf, North Star and Dolly Varden abut the northern and southern
boundaries of the Musketeer. Extensions of those deposits will be quickly
targeted on the Musketeer in 2013. 

The Musketeer is underlain by Lower to Middle Jurassic Hazelton group volcanic
and sedimentary rocks. Within the Hazelton group stratigraphy, historic
drilling has shown that stratiform deposits of the combined Dolly Varden -
North Star - Torbrit silver deposits plunge toward, and are in close proximity
to, the southern boundary of the Musketeer at moderate depths.

Limited historical exploration work has been conducted on the Musketeer; areas
of interest include the surface prospects Kitsol, South Musketeer, and North
Musketeer. The Company intends to explore those shallow seated prospects in
2013, in parallel with the exploration of the deeper Torbrit mine down-plunge
targets. 

The Musketeer Property Agreement

The Agreement allows the Company to acquire a 100% interest in the Musketeer
Property for a purchase price of $1,050,000, subject to a 2% Net Smelter
Royalty in favour of the optionees. 

As consideration for the first year of the option, the Company paid the
optionees aggregate option payments of $350,000. The Company's option on the
Musketeer Property may be extended for up to three years by making option
payments of $233,333 for each additional year. All option payments under the
Agreement may be credited towards the purchase price in the event that the
Company decides to exercise its option. The Company will also have the option
to reduce the royalty to one percent of net smelter returns by paying $1.75
million to the royalty holders within three years of acquiring the Musketeer
Property.

About Dolly Varden

Dolly Varden Silver Corporation is a Canadian-based mineral exploration
company focused on the exploration and development of the Dolly Varden silver
property located in northwestern British Columbia. 

The Dolly Varden silver property consists of 9,400 hectares which includes
four well-defined high grade silver deposits, two of which have seen historic
production totaling 20 million ounces of silver. All four deposits have
remaining historic mineral resources and are situated in the same geologic
setting as the past-producing Eskay Creek gold-silver-rich VMS deposit. The
Company has two strategies for creating value at the Dolly Varden silver
project: to confirm and expand the existing historic silver resources with the
goal to re-start the mining of historic deposits and to explore a major,
untested Eskay Creek-type gold and silver rich VMS target, located northwest
of the past producing mines. 

The Company's common shares are listed and traded on the TSX-V under the
symbol DV and in the U.S. under the symbol DOLLF.

Paul McGuigan, P.Geo., Vice President of Exploration, has acted as the
Qualified Person as defined in National Instrument 43-101 for this disclosure
and has approved the technical information contained in this release.

FORWARD-LOOKING STATEMENTS:

Certain of the statements and information in this press release 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 related to, among other
things the proposed use of proceeds the Offering.

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, 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
of this press release, 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. For the reasons set forth
above, investors should not place undue reliance on forward-looking statements
and information.

FOR FURTHER INFORMATION PLEASE CONTACT: 
Dolly Varden Silver Corporation
Ron Nichols, P. Eng.
CEO and President
1-778-383-3083 or 1-855-381-3530 Toll Free
www.dollyvardensilver.com


Dolly Varden Silver Corporation
Ron Nichols, P. Eng.
CEO and President
1-778-383-3083 or Toll Free: 1-855-381-3530
www.dollyvardensilver.com


Strata Star
Gary Lindsey
Investor Relations
1-720-273-6224
gary@strata-star.com




        

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