Diablo Resources Consolidates Utah Silver District with Horn Silver Acquisition

Strategic Acquisition Expands Utah Mining Footprint

Diablo Resources Ltd (ASX:DBO) has completed the acquisition of an 80% interest in the Horn Silver Project, a historic polymetallic district in Utah’s Frisco mining belt. The purchase secures 101 unpatented claims and option rights over 101 patented claims, with the company now exercising the option on patented claims 3–5 after satisfying all conditions precedent. This consolidation significantly expands Diablo’s landholding to approximately 13.2 square kilometres across 202 claims, positioning the company as a major player in a prolific silver-gold-copper-antimony district.

The Horn Silver Mine, located within the project, historically produced around 17 million ounces of silver at a remarkable grade of 604 grams per tonne, alongside 30,000 ounces of gold. These figures underscore the district’s high-grade potential, a compelling foundation for Diablo’s planned exploration push.

Complementary Assets and Operational Synergies

Horn Silver lies just 15 kilometres from Diablo’s Star Range Project, creating a district-scale portfolio that offers operational efficiencies in exploration, permitting, and drilling. Star Range’s North Star Prospect is already permitted for a maiden diamond drilling program of about 1,000 metres across five holes, with flexibility for up to 27 holes from 12 drill pads. Recent exploration at Star Range has extended the South Star silver-antimony trend beyond 3,000 metres and identified a 400-metre copper anomaly at East Star, enhancing the portfolio’s strategic value.

This proximity allows Diablo to leverage technical expertise and field logistics across both projects, accelerating target generation and exploration progress. The company’s A$3.5 million placement completed in July 2026 is earmarked to fund these activities, including drilling and geophysical surveys.

Robust Exploration Pipeline with District-Scale Potential

Diablo’s acquisition brings a rich pipeline of exploration targets, ranging from near-mine extensions to regional prospects. Key opportunities include interpreted extensions beneath the historic Horn Silver Mine coinciding with strong Induced Polarisation (IP) anomalies, shallow gold-silver mineralisation on the project’s periphery, and multiple untested IP anomalies such as the Gossan and Buckhorn targets. Additionally, regional copper-silver skarn prospects associated with intrusive contacts present further upside beyond the immediate mine area.

Rock sampling has returned highly anomalous assays, including silver grades up to 1,310 g/t and antimony at 0.2%, supporting the interpretation of a large, underexplored mineralised system. These targets provide a clear pathway for Diablo’s maiden drilling campaign at Horn Silver, which will follow permitting and detailed target refinement.

Alignment with US Critical Minerals Strategy

The strategic importance of Diablo’s Utah portfolio is underscored by the inclusion of silver, copper, and antimony on the United States’ 2025 List of Critical Minerals. This designation aligns the company’s projects with national priorities aimed at securing domestic supply chains for defence and emerging technologies such as electric vehicles, solar panels, AI data centres, and 5G infrastructure.

Recent US policy initiatives, including Executive Order 14415 issued in July 2026, emphasize accelerated testing and qualification of new critical mineral sources, providing a supportive regulatory backdrop for projects like Horn Silver. Diablo’s CEO Lyle Thorne highlighted the company’s commitment to advancing these assets in a manner consistent with US strategic goals.

Corporate Developments and Next Steps

The acquisition consideration included issuing 36 million shares to the seller, Opal Resources, subject to escrow conditions. Antler Resources, now 80% owned by Diablo, has notified Horn Silver Mines of its intention to exercise the option over patented claims, with a US$750,000 payment pending transfer of title.

Further strengthening the company’s technical capability, Patrick Say has joined the board as a Non-Executive Director. Say brings over 20 years of mining industry experience and a strong geological background, having led the delineation of the Hillside copper-gold deposit with Rex Minerals.

Diablo’s immediate focus will be integrating historical data into its geological model, commencing on-ground exploration including mapping and sampling, and refining drill targets. Permitting for maiden drilling at Horn Silver is underway, alongside advancing the permitted diamond drilling program at Star Range’s North Star Prospect.