Diablo Resources has unveiled a high-grade copper discovery at its newly acquired Phoenix Copper Project near the prolific Lisbon Valley Mine in Utah, with initial rock samples returning up to 45.7% copper and 219 g/t silver. The company is advancing exploration with drilling planned for 2025.
- Phoenix Copper Project located adjacent to producing Lisbon Valley Copper Mine
- Initial sampling reveals up to 45.7% copper and 219 g/t silver assays
- 750 meters of mineralised strike identified, open in multiple directions
- Exploration underway with drilling targeted for 2025
- Placement raising $576,800 to fund exploration activities
Strategic Acquisition in a World-Class Copper District
Diablo Resources (ASX: DBO) has announced a significant new copper exploration opportunity with the acquisition and staking of the Phoenix Copper Project, situated along strike from the operating Lisbon Valley Copper Mine in the Utah-Colorado border region. This district is renowned for its prolific copper production, with Utah ranking as the second largest copper-producing state in the US in 2023.
The Phoenix Project covers 292 unpatented lode claims spanning 23.6 square kilometers, divided into the CC and Stateline claim blocks. These areas lie within a geologically favorable setting characterized by sediment-hosted copper mineralisation, similar to that exploited at Lisbon Valley.
Exceptional Initial Sampling Results
Reconnaissance rock chip sampling at the Philadelphia Prospect within the CC Claim Block has yielded remarkable assay results, with copper grades averaging 6.29% and peaking at an extraordinary 45.7% copper alongside 219 grams per tonne silver. These samples were collected from outcrops, mine dumps, and historical workings along a 750-meter mineralised strike that remains open for expansion.
Such high-grade surface mineralisation is rare and suggests the presence of substantial copper zones beneath. The presence of malachite and other copper oxides along strike from the Lisbon Valley drilling boundary further supports the prospectivity of the project.
Exploration Plans and Market Context
Diablo’s US-based technical team has commenced detailed geological mapping, geochemical sampling, and structural interpretation to refine drill targets. The company aims to initiate drilling in 2025 to test these high-priority zones. CEO Lyle Thorne emphasized the rarity and value of near-mine exploration opportunities in established mining districts and the company’s commitment to applying modern techniques to unlock value.
The timing aligns with a tightening copper market driven by accelerating demand from renewable energy, electric vehicles, and infrastructure development. Industry forecasts predict a significant supply gap by 2030, underscoring the strategic importance of new high-grade discoveries like Phoenix.
Funding and Forward Outlook
To support exploration, Diablo has secured firm commitments to raise $576,800 through a share placement priced at 1.8 cents per share, accompanied by options exercisable at 3.6 cents. This capital injection will fund ongoing fieldwork and drilling preparations. Shareholder approval for the second tranche of shares and options is expected in April 2025.
While the initial results are promising, the project remains at an early stage with no drilling completed to date. The company’s ability to translate surface mineralisation into a defined resource will be critical in the coming months.
Bottom Line?
Diablo’s Phoenix Project could be a game-changer if drilling confirms the high-grade surface mineralisation, setting the stage for a pivotal 2025 exploration season.
Questions in the middle?
- Will drilling confirm the extent and continuity of the high-grade copper zones identified at surface?
- How will Diablo balance exploration funding with market conditions and shareholder expectations?
- What are the potential timelines and pathways for advancing Phoenix towards resource definition and development?