Diablo Resources Acquires 80% Stake in Historic Utah Silver Mine

Historic High-Grade Silver Mine Joins Diablo’s Portfolio

Diablo Resources Limited (ASX:DBO) has taken a major leap forward by entering a binding agreement to acquire an 80% stake in the Horn Silver Project in Utah. This historic mine produced approximately 17 million ounces of silver at an exceptional average grade of 604 grams per tonne, alongside 30,000 ounces of gold. The acquisition not only adds a proven high-grade asset to Diablo’s portfolio but also unlocks multiple immediate drill targets and significant district-scale exploration upside.

The Horn Silver Project spans roughly 13.2 square kilometres across 201 claims, including 101 patented claims that provide permitting advantages and operational flexibility. Situated just 15 kilometres from Diablo’s 100%-owned Star Range Silver-Antimony Project, the deal consolidates a commanding position in one of the United States’ most prospective silver districts.

Drilling Targets Backed by Historical Data and Geophysics

The project area is anchored by the historic Horn Silver Mine, which saw production through the late 19th and early 20th centuries. Modern exploration efforts have identified multiple high-priority drill targets. These include shallow, high-grade gold-silver mineralisation near historic workings and several untested induced polarisation (IP) anomalies that mirror the mineralisation style of the Horn Silver Mine.

Historical drilling has uncovered significant copper-silver skarn mineralisation at regional prospects such as Accrington and Imperial, with intercepts including 54 metres at 1.4% copper and 14 metres at 3.4% copper. Rock sampling has confirmed a district-scale silver-antimony-copper system, with assays reaching up to 1,310 g/t silver and 0.2% antimony. These findings set the stage for a focused exploration campaign targeting both near-mine extensions and broader system-scale discoveries.

Diablo plans to rapidly initiate drilling to test the interpreted extensions of the Horn Silver Mine, the Gossan and Buckhorn IP anomalies, and copper skarn prospects. The company also intends to leverage the patented claim package to streamline permitting and accelerate exploration progress.

Capital Raise Secures $3.5 Million for Exploration Drive

To fund the acquisition and exploration programs, Diablo has secured firm commitments for a $3.5 million placement at an issue price of 1.3 cents per share. This capital injection will underpin drilling at Horn Silver and the Star Range Project, including targeting near-mine and regional prospects. The placement is structured in two tranches, with the first tranche of 58.8 million shares issued under existing placement capacity and the second tranche subject to shareholder approval.

This funding milestone follows a recent tranche 1 placement raising $764,400, with shareholder approval sought for a further $2.74 million in June, reflecting growing investor support for Diablo’s Utah-focused strategy. The capital raise provides a clear runway for the company’s exploration ambitions in a top-ranked mining jurisdiction according to the Fraser Institute.

Acquisition Terms and Strategic Implications

The acquisition agreement includes upfront share issuance to the seller, a US$750,000 option exercise payment to secure 100% of the patented claims, and a consultancy contract for ongoing technical support. Deferred consideration involves milestone-based share issuances tied to drilling progress and delivery of a JORC-compliant inferred resource of at least 10 million ounces of silver at grades exceeding 150 g/t.

Diablo’s CEO Lyle Thorne highlighted that the Horn Silver acquisition complements the Star Range Project, enabling a coordinated exploration approach across a historically productive and underexplored mineral system. The combination of immediate drill targets and district-scale potential positions the company to deliver meaningful results throughout the year.

While the historical production data and exploration results are not fully compliant with the JORC Code 2012 and require verification drilling, the comprehensive legacy data and modern geophysical surveys provide a robust technical foundation for advancing the project.

As Diablo prepares to embark on its drilling campaign, market participants will be watching how the company leverages its expanded footprint to unlock value in one of North America’s premier silver districts, building on recent progress at the Star Range Project and its copper-gold prospects.

$3.5 million placement to fund exploration and historic Horn Silver Mine acquisition mark a pivotal moment in Diablo’s growth trajectory in Utah’s mining heartland.