Diablo Resources has acquired an 80% stake in Utah's Horn Silver Mine, a historically prolific high-grade silver asset, backed by a $3.5 million capital raise to accelerate drilling across multiple immediate targets.
- Acquisition of 80% interest in Horn Silver Mine, Utah
- 17 million ounces silver produced historically at 604 g/t grade
- $3.5 million capital raise committed for near-term drilling
- 101 patented claims streamline permitting and exploration
- Maiden drilling planned for Q2 2026 with multiple targets
Historic High-Grade Silver Asset Joins Diablo Portfolio
Diablo Resources Limited (ASX:DBO, OTCQB:DBORF) has taken a major step in its US critical minerals push by acquiring an 80% interest in the Horn Silver Mine, a storied silver project in Utah's San Francisco Mining District. The mine boasts a legacy of producing 17 million ounces of silver at an extraordinary average grade of 604 grams per tonne, positioning it among the highest-grade historic silver mines in the world.
This acquisition is more than a trophy asset; it comes with 101 patented and 100 unpatented claims under option, a rare feature that significantly de-risks exploration by easing permitting hurdles and enabling swift drill access. Diablo aims to leverage this streamlined access to fast-track exploration across multiple walk-up drill targets identified from legacy data and recent assessments.
Immediate Drill Catalysts Backed by $3.5 Million Capital Raise
The company has secured a committed $3.5 million capital raise priced at 1.3 cents per share, earmarked exclusively for near-term drilling and exploration activities at Horn Silver and its adjacent Star Range project. Drilling is slated to commence in Q2 2026, with a focus on untested high-priority silver, antimony, and copper targets that promise multiple discovery avenues.
Horn Silver’s mineralisation remains open at depth and along strike, with historical drilling including standout intercepts such as 1.5 meters at 629 g/t silver and 6.1 meters at 5.9 g/t gold with 165 g/t silver. These figures, while historical and not JORC-compliant, underscore the project's robust potential pending modern verification and resource definition.
The acquisition complements Diablo’s existing Star Range project, which itself has delivered high-grade silver-antimony-copper-gold results and is advancing toward maiden drilling. This strategic alignment creates operational synergies, with a Utah-based exploration team bringing local expertise to efficiently execute the district-scale exploration program. The company’s recent high-priority drill targets identified at Star Range provide a fitting parallel to the new Horn Silver opportunity.
Strategic Deal Structure and Milestone Incentives
The deal includes milestone-based share issuances to the vendor, Antler Resources LLC, including 10 million shares upon completion of 1,000 meters of drilling and 30 million shares upon delivery of a JORC-compliant inferred resource of at least 10 million ounces silver at over 150 g/t grade. An upfront payment of US$750,000 will secure 100% of the patented claims, with additional consultancy support contracted to the seller to facilitate technical and logistical assistance.
Diablo’s pro forma capital structure post-transaction reflects a market cap of approximately A$7 million, positioning the company to maximise leverage from upcoming drilling newsflow. The placement is structured in two tranches, with the first tranche closing imminently under existing placement capacity and the second tranche subject to shareholder approval.
Copper and Antimony Upside Adds to Silver Focus
Beyond silver, the Horn Silver district hosts compelling polymetallic potential, including antimony and copper. The nearby Imperial/Accrington prospect has historical drill intercepts such as 54 meters at 1.4% copper, highlighting incremental upside. Rock sampling near Horn Silver has returned assays up to 1,310 g/t silver and 0.25% antimony, reinforcing the district’s critical minerals credentials amid a commodity supercycle.
Diablo’s US exploration team, led by CEO Lyle Thorne and supported by directors with extensive mining and investment experience, is poised to capitalise on this multi-commodity potential. Their local knowledge and operational alignment with the Star Range project underpin a discovery-focused approach designed to unlock value rapidly.
The Horn Silver acquisition marks a transformational chapter for Diablo, expanding its footprint in a Tier-1 mining jurisdiction with a rich history and significant unexplored upside. The company’s upcoming maiden drilling campaign and ongoing exploration will be key to validating the historical data and advancing toward resource definition, setting the stage for what could be a pivotal re-rating event.
Meanwhile, Diablo continues to build momentum at Star Range, where high-grade silver-antimony-copper results have recently confirmed multiple mineralised trends ahead of drilling. Together, these projects position Diablo as a growing player in the US critical minerals arena with diversified exposure and a clear path to near-term newsflow.
Bottom Line?
Diablo’s Horn Silver acquisition, backed by committed funding and immediate drill targets, sets up a critical minerals play with district-scale upside but hinges on confirming historical grades through upcoming drilling.
Questions in the middle?
- Will maiden drilling confirm the high-grade historical silver intercepts at Horn Silver?
- How will milestone-based share issuances impact shareholder dilution and valuation?
- Can the company replicate its Star Range exploration success at the newly acquired Horn Silver district?