Diablo Resources Completes $3.5M Placement and Approves Up to 27 Holes at North Star
Diablo Resources has secured final permits to start a maiden diamond drilling program at its high-grade North Star Prospect in Utah, targeting silver, antimony, and copper. The company also completed the second tranche of a $3.5 million placement to fund exploration and the Horn Silver acquisition.
- Maiden drilling approved for North Star Prospect with up to 27 holes permitted
- Initial program to test high-grade silver-antimony-copper targets identified by geophysics and surface sampling
- Completed $3.5 million placement with tranche 2 raising $2.74 million
- Acquisition of 80% interest in Horn Silver Project progressing post shareholder approval
- Regional sampling expands pipeline with new anomalies at South and East Star Prospects
Maiden Drilling to Unlock Utah Silver-Antimony System
Diablo Resources (ASX:DBO) is set to commence its first-ever diamond drilling campaign at the North Star Prospect within its Star Range Project in southwestern Utah. The green light came with the receipt of final drill permits, enabling the company to mobilise and start drilling within weeks. This maiden program aims to test multiple high-priority silver-antimony-copper-gold targets defined by integrated geophysical surveys, detailed mapping, and surface geochemical sampling.
The initial drilling plan comprises approximately 1,000 metres across five diamond holes, with flexibility to expand up to 27 holes from 12 pads under the approved permit. Surface rock-chip assays at North Star have returned remarkable grades, including silver up to 3,043 grams per tonne and antimony to 0.7%, yet the prospect has never been drilled before. The program will focus on testing coincident induced polarisation (IP) geophysical anomalies aligned with mapped structures and high-grade surface mineralisation, aiming to understand the scale and geometry of the mineralised breccia-vein system at depth.
Expanding Exploration Pipeline with Regional Sampling
Beyond North Star, Diablo has completed regional geochemical sampling at the South Star and East Star Prospects. The South Star Prospect hosts a significant silver-antimony soil anomaly extending over 1,000 metres and open to the northeast, supporting the interpretation of a large, zoned mineral system transitioning from copper-silver skarn mineralisation near intrusive contacts to distal silver-antimony-gold zones. Mapping has identified old workings with veins grading up to 231 g/t silver and 0.1% antimony, highlighting the prospectivity of these trends. Pending assay results from these programs are expected to refine drill targeting and prioritisation across the broader Star Range Project.
Capital Raise Completes to Fund Aggressive Growth
Parallel to its exploration push, Diablo has completed the second tranche of its placement, issuing 210.4 million shares at 1.3 cents each to raise approximately $2.74 million before costs. This closes out the total $3.5 million placement announced earlier in May, which was approved at the company’s recent general meeting. The capital injection bolsters Diablo's balance sheet ahead of the planned drilling and exploration activities, including advancing the Horn Silver acquisition.
Horn Silver Acquisition Advances Following Shareholder Approval
Diablo is also progressing the acquisition of an 80% interest in the Horn Silver Project, a historically prolific silver mine located about 15 kilometres northwest of Star Range. The project boasts a legacy of 17 million ounces of silver production at high grades, alongside gold and copper. Shareholder approval was secured on 29 June, clearing the way for completion of the acquisition. This strategic move consolidates Diablo’s footprint in a polymetallic district with significant exploration upside, enabling a district-scale approach across both projects. Geological mapping and target generation are underway at Horn Silver to prepare for initial drill planning and permitting.
Strategic Positioning in a Critical Minerals Hub
Located in Utah’s Star Range, the project area benefits from existing infrastructure, including power, gas pipelines, and rail access. The district has a rich mining heritage with polymetallic mineralisation styles including manto-replacement and breccia vein systems. Diablo’s CEO Lyle Thorne highlighted the company’s positioning to support the United States’ critical minerals supply chain by focusing on silver, antimony, and copper; elements essential for emerging technologies and industrial applications.
The upcoming drill results from North Star, combined with assay data from South and East Star and the Horn Silver acquisition, will be pivotal in shaping Diablo’s exploration strategy and potential resource delineation. Investors will be watching closely as the company moves from surface sampling to subsurface testing in a historically underexplored yet highly prospective region.
Bottom Line?
Diablo’s maiden drilling at North Star backed by fresh capital and strategic acquisition sets the stage for a potentially transformative exploration phase in Utah’s critical minerals sector.
Questions in the middle?
- Will initial drilling at North Star confirm the continuity of high-grade silver-antimony mineralisation at depth?
- How will assay results from South and East Star influence the prioritisation of future drill targets?
- What are the next steps and timelines for advancing exploration and drilling at the Horn Silver Project post-acquisition?
