BMR Special Report – Doubleview Capital Corp. (DBV, TSX-V)

8:00 pm Pacific

When the President and CEO of a junior exploration company mortgages his home and overcomes one obstacle after another in order to drill a property during very challenging market conditions, one can’t help but respect that display of courage.  The real “magical” part, of course, comes when that drilling actually produces a legitimate early-stage discovery.  Such is the compelling story of Doubleview Capital Corp. (DBV, TSX-V) and its leader, Farshad Shirvani, who now has momentum and a growing list of believers on his side.  This is Part 1 of a special BMR series on Doubleview that will cover everything from the fascinating history of the Hat Property to the high-stakes late 2013 gamble that paid off big time, accelerating northwest British Columbia’s Sheslay Valley play into one of the hottest discovery plays in Canada.

Hollywood couldn’t have written a better script.  In December, Doubleview was a company on “life support” in the eyes of the market.  The money that Shirvani had struggled so hard to raise in the fall, including personal funds he scraped together after re-mortgaging his West Vancouver home, had just been exhausted on a five-hole drill program that many critics said never should have been carried out due to poor market conditions.  Then came a “game changer” – breakthrough results January 20 from this second phase of drilling that followed a promising trail of Cu-Au porphyry mineralization discovered in first-ever drilling at the property several months earlier.  The news sparked a staking rush and new players have arrived on the scene.

Perhaps the market should have seen this “surprise” coming.  The Hat Property features some impressive historical data and it’s located in an under-exploited but now rapidly emerging prolific area of B.C. where, logically, one would expect to find one or more world class deposits.  And the way this is beginning to play out, with drill holes that keep getting better, there’s every reason to believe the best is yet to come – especially when the company President and CEO is demonstrating such focus, boldness, determination and faith in his project.

“We’re very fortunate to be in the right place at the right time,” Shirvani told BMR in an exclusive interview over the weekend.  “We’re in such a prospective geological environment in the Sheslay Valley.  Some say it’s ‘pregnant’ – that’s certainly one way of describing it in layman’s terms.  The entire district has been under-explored up until this point though the work that has been done shows it bears all the signatures of world class deposits elsewhere in the region.  The possibilities are endless with hard work and of course some good luck.  We have strong neighbors who are also preparing to drill very promising properties, so the potential for multiple discoveries over a broad area definitely exists.  It’s reasonable to postulate that there are clusters of deposits in this district that fit a particular model.”

In this business, showing progression is critical – and that’s one key reason why the market has taken such a liking to recent developments at the Hat.  Doubleview’s last hole (H-11) was its best yet – and H-11 was in strong Copper-Gold mineralization when drill crews ran out of time in their fight against the weather.  They had to flee the scene as a major cold wave descended upon the area in late November.  “We didn’t have the time or even the money to set up a fully winterized camp,” explained Shirvani.  “We pushed as hard as we could, we went right to the wall with the resources we had and given the extreme weather conditions that quickly emerged in November.  Of course the crew desperately wanted to continue the last hole based on what they were seeing in the core, but we couldn’t put lives in jeopardy.  I’m so proud of the dedication and skill our people showed, drilling five holes and giving us a discovery that we’re so eager to follow up on as quickly as possible.”

Volume Potential, Increasing Grades At Depth

The market is clearly seeing the potential for the discovery of a deposit at the Hat.  Just at Anomaly “B”, the horizontal extent from mineral zones in holes H-6 and H-8 is nearly a kilometre.  Hole H-8 returned 287 m of 0.30 CuEq while hole H-11 intersected 313 m of 0.32 CuEq.  The end of the last hole was getting particularly interesting just as crews were forced to shut down due to the weather – a 52-m section between 258 m and 310 m returned 0.42% Cu, 0.34 g/t Au, and 1.56 g/t Ag for a CuEq grade of 0.62%.

“Speculatively,” as DBV’s Jan. 20 news release stated, “if the newly discovered mineral zone is, as appears likely, continuous with the historic Hoey Copper-Gold zone that lies two kilometres south of the drill hole H-8 and has closely similar geologic and mineralogic characteristics, the horizontal extent may be in excess of three kilometres.”

Doubleview has no shortage of potential targets as you can see on the map below.  Importantly, strong geophysical responses are coincident with areas of anomalous to strongly anomalous copper-in-soils throughout a wide portion of the property.  Only further drilling, however, will explain the IP response, surface geochem and known geology and at the end determine the size and grade of any deposit.  These are still “early days” and DBV is still trying to find the core of this system, the “heat engine” of the Hat.

 

The 47 year-old Shirvani, who earned a Masters degree in hydrogeology in his native Iran, has specialized in modeling deposits since coming to Canada in the mid-1990’s.  With 11 holes now drilled at the Hat, combined with a plethora of geophysical and geochemical data, he believes he has a much better understanding of the shape of a potential deposit at this property which will help immensely going forward.  At his side is highly respected geologist Erik Ostensoe.  It was Ostensoe and Tom Lisle., P.Eng., who finally decided to option the Hat to Doubleview in the summer of 2011 after several years of “hard chasing” by Shirvani.

“I had never seen so many dots on a page with 300+ ppm Copper – that’s how the Hat got my attention,” Shirvani told us, reiterating the significance of extensive geochemical data collected at this property since prospecting began there about four decades ago.

Now the Hat and the entire Sheslay Valley area have got the attention of the markets, and how this all unfolds over the coming weeks and months is going to be fascinating as at least three companies could be running simultaneous drill programs.

 

Given the boldness Shirvani has displayed so far, and his ability to make things happen, our take is that he should not be underestimated in terms of his next moves including how quickly drilling operations may resume at the Hat to follow up on the highly encouraging last set of results.  Money is starting to flow into Doubleview through the exercise of warrants, thanks to loyal shareholders and a substantial lift in the stock price. Investors may not have to wait too long, therefore, before learning the mysteries of H-11 below 260 m vertical depth where drilling abruptly ended, thanks to a blast of Arctic air, with the hole in strong Copper-Gold mineralization.

Later this week…Part 2.

Note: The writer holds a share position in DBV.  As always, perform your own due diligence. 

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