Phoenix Project Yields Copper Samples Up to 45.7% Cu; $576,800 Raised for Drilling

Strategic Acquisition and Location

Diablo Resources Ltd (ASX: DBO) has made a significant stride in its copper exploration ambitions with the acquisition of the Phoenix Copper Project, strategically located along strike from the producing Lisbon Valley Copper Mine (LVCC) in the USA. Situated approximately 70km southwest of Moab near the Utah-Colorado border, the project covers 5,840 acres across two claim blocks, CC and Stateline, on federally managed lands.

This proximity to a world-class copper mining district, combined with the project's geological setting mirroring that of LVCC, positions Diablo well to tap into sediment-hosted copper mineralisation that has seen limited recent exploration.

Exploration Highlights and Target Generation

During the March 2025 quarter, Diablo completed initial reconnaissance work, including grab and channel sampling, which yielded highly encouraging results. The Philadelphia Prospect within the CC Claim Block revealed over 750 meters of outcropping copper mineralisation, with grab samples averaging 6.29% copper and peaking at an extraordinary 45.7% Cu alongside 219 g/t silver.

Channel sampling further confirmed multiple mineralised zones, with notable intercepts such as 6 meters at 2.13% Cu including 1 meter at 7.16% Cu, and other intervals demonstrating consistent copper grades. Additional targets within the claim blocks returned significant assays, including float samples with up to 42.6% Cu and 211 g/t Ag, underscoring the project's robust exploration potential.

Advancing Towards Drilling and Development

Building on these promising surface results, Diablo has identified six priority targets through detailed geological and structural interpretation, focusing on fault zones and stratigraphic units analogous to those hosting mineralisation at LVCC. The company is actively conducting geochemical sampling and mapping to refine these targets ahead of planned drill testing in 2025.

To support this next phase, Diablo successfully raised $576,800 from professional and sophisticated investors via a placement, with shares priced at 1.8 cents and attaching options subject to shareholder approval. This capital injection will underpin the advancement of exploration activities at Phoenix, while also maintaining momentum on other projects.

Other Project Updates and Corporate Position

Beyond Phoenix, Diablo is progressing permitting for the King Solomon Gold Project in Idaho, awaiting final approval from the US Forest Service for a five-year permit. Meanwhile, the Devils Canyon Project in Nevada is under strategic review as the company evaluates its options in the prolific Carlin Trend region.

Financially, Diablo ended the quarter with $337,000 in cash, reflecting prudent capital management as it balances exploration expenditure with funding requirements. Shareholder approval for the issuance of options related to the recent placement is anticipated in the coming months.

Outlook

Diablo Resources’ methodical approach to exploration at Phoenix, combined with high-grade surface assays and a clear pathway to drilling, sets the stage for potentially transformative results. The coming quarters will be critical as the company seeks to convert its compelling targets into defined resources, while navigating permitting and strategic decisions across its portfolio.