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Diablo Resources Limited (ASX:DBO) has obtained shareholder approval to acquire an 80% interest in the Horn Silver Project in Utah, marking a pivotal expansion of its US critical minerals assets. The historic mine yielded 17 million ounces of silver and 30,000 ounces of gold at outstanding grades. The company aims to progress exploration across numerous untested targets. Supported by an A$3.5 million capital placement, this acquisition complements Diablo’s existing silver-antimony-copper holdings within a well-established Utah mining district.
Key Highlights
- Diablo Resources Limited (ASX:DBO) is acquiring an 80% interest in the Horn Silver Project from Antler Resources LLC.
- Shareholders approved the transformative acquisition on 29 June 2026, significantly expanding Diablo’s US critical minerals portfolio.
- The historic Horn Silver Mine produced 17 million ounces of silver and 30,000 ounces of gold with grades of 604 g/t Ag and 1.04 g/t Au.
- Horn Silver lies about 15 km from Diablo’s Star Range Project, enabling operational synergies and a complementary asset base.
- The project includes 201 claims, with 101 patented claims spanning 13.2 square kilometres.
- Diablo received final regulatory approval to initiate its maiden drill program at the North Star Prospect, targeting approximately 1,000 metres across five diamond drill holes.
- The A$3.5 million capital placement was fully completed, with Tranche 2 finalised in July 2026.
Horn Silver Project Acquisition Bolsters Diablo’s Strategic Footprint in Utah
Diablo Resources has finalized the acquisition of an 80% interest in the Horn Silver Project, which the company describes as a transformational growth of its US critical minerals presence. The binding agreement closed in the quarter ending 30 June 2026, with shareholder approval secured on 29 June 2026. This acquisition provides immediate access to a historically high-grade silver mine situated in Utah, a globally recognized mining jurisdiction.
The Horn Silver Project encompasses 201 claims covering about 13.2 square kilometres, including 101 patented claims that offer significant advantages in exploration planning, permitting, and operational access compared to unpatented claims. This patented claim structure facilitates timely exploration starts and minimizes regulatory delays. The remaining 100 unpatented claims are directly owned, consolidating Diablo’s control over the project. This consolidated landholding within a single Utah mining district enables the company to leverage existing technical expertise and operational capabilities.
Historic Horn Silver Mine Showcases Exceptional Grades and Mineralisation Potential
The historic Horn Silver Mine is a key asset in Diablo’s expanded portfolio, having produced around 17 million ounces of silver and 30,000 ounces of gold historically at grades of 604 g/t silver and 1.04 g/t gold. These exceptional grades provide a robust geological foundation for defining exploration targets both at depth and along strike from historic workings. The mine’s production history offers a valuable baseline for assessing mineralisation and economic potential.
Beyond past production, multiple untested targets exist, indicating substantial upside. Mineralisation remains open at depth and along strike from known workings, suggesting deeper extensions remain unexplored. Shallow gold and silver zones have been identified outside historic workings, expanding the mineralised footprint. Rock sampling across the project has returned anomalous values up to 1,310 g/t silver and 0.2% antimony, confirming a district-scale silver-antimony-copper system. These findings indicate exploration potential extends far beyond the historic mine pit, incorporating regional geochemical anomalies and structural targets.
Geophysical Surveys Reveal Priority Drill Targets at Horn Silver
Modern geophysical techniques, especially Induced Polarisation (IP) surveys, have identified multiple high-priority drill targets within the Horn Silver Project. Strong IP anomalies correlate with interpreted mineralised extensions beneath the historic mine, creating immediate drill-ready opportunities. Additional IP anomalies at the Gossan and Buckhorn Mine areas are considered potential analogues to the Horn Silver system, suggesting similar economic mineralisation.
The combination of near-mine extensions, untested IP anomalies, and regional copper-silver skarn prospects forms a robust exploration pipeline. Priority near-mine drilling will test zones where IP anomalies align with geological models of mineral continuity. Regional skarn prospects offer longer-term discovery potential, reflecting the district’s broader mineral systems. Integrating historical mining data, surface geochemistry, and geophysical results has enabled a comprehensive targeting model supporting both immediate and future exploration.
Star Range Project Reports High-Grade Assays and Defines New Targets
During the quarter, exploration at the Star Range Project, located 15 km south of Horn Silver, yielded significant results enhancing the district’s geological model. Geochemical sampling detected high-grade critical mineral anomalies, including silver up to 534 g/t, antimony up to 0.19%, copper up to 1%, and gold up to 1.04 g/t. These results extended mineralised trends and identified new zones, such as a gold-anomalous corridor on the Utah TLA lease and a copper-in-soil anomaly along the North Star northeast extension.
At the South Star Ag-Sb prospect, soil anomalies extend over 1,000 metres and remain open northeast, indicating an expanding mineral system. At North Star, integrated rock sampling, soil geochemistry, and mapping defined further drill targets. These outcomes bolster confidence in a district-scale silver-antimony-copper system and support planning for the maiden North Star drill program, the first direct test of integrated exploration targets.
North Star Maiden Drill Program Receives Final Regulatory Approval
Post-quarter, Diablo announced final regulatory approval to commence its maiden diamond drill program at the North Star Prospect within the Star Range Project. The initial program involves approximately 1,000 metres across five drill holes, providing a focused test of high-priority targets. Existing approvals allow expansion up to 27 holes from 12 pads if initial results warrant further drilling, enabling rapid escalation without additional permitting delays.
This drill program marks a significant step in Diablo’s exploration strategy, transitioning from surface surveys to subsurface testing. The holes aim to evaluate the silver-antimony-copper system’s depth and economic potential based on prior geochemical and geophysical data. Preparations including permitting and logistics advanced during the quarter, reflecting the company’s commitment to efficient exploration execution and integrated targeting.
A$3.5 Million Capital Placement Supports Portfolio Expansion and Exploration
Diablo completed an A$3.5 million capital placement to fund the Horn Silver acquisition and exploration across the Star Range and Horn Silver projects. The placement was structured in two tranches: Tranche 1 closed in the quarter ending 30 June 2026, and Tranche 2 was approved on 29 June 2026 and completed in July 2026. This structure secured funding ahead of shareholder approval, ensuring capital availability for field activities.
The capital injection enables maiden drilling at North Star and exploration commencement at Horn Silver. Coordinated programs across both assets leverage shared infrastructure and expertise within the Utah mining district. Completion of Tranche 2 immediately post-quarter demonstrates investor confidence in Diablo’s expansion and exploration strategy, providing operational continuity through 2026 and into 2027 without immediate further capital needs.
Proximity of Star Range and Horn Silver Projects Drives Operational and Strategic Benefits
The Horn Silver and Star Range projects are only 15 kilometres apart within the same established Utah mining district, offering significant operational and strategic advantages. This Tier-1 jurisdiction boasts a rich history of precious and critical metal production. Geographic concentration allows shared logistics, permitting expertise, and technical teams, reducing costs and accelerating exploration timelines. Efficient movement of equipment and personnel between sites optimizes operations.
Strategically, the proximity consolidates a complementary silver-antimony-copper portfolio. Star Range targets district-scale systems at an earlier stage, while Horn Silver provides immediate drill-ready opportunities at a historic high-grade mine with open extensions. This diversity supports exploration across multiple deposit types and scales, enhancing the chance of defining a major mineral system suitable for future development or partnerships. Diablo’s district presence strengthens long-term strategic positioning and optionality as exploration advances.
Exploration Potential Extends Beyond Historic Mine to Regional Targets
Exploration at Horn Silver goes well beyond the historic pit, encompassing a pipeline of regional targets identified via historical mining records, surface geochemistry, and modern geophysics. Regional copper-silver skarn prospects analogous to Horn Silver’s system represent long-term discovery opportunities. Testing of geochemical anomalies linked to historical workings and structural features enables systematic exploration across the 13.2 square kilometre land package, providing multi-year upside potential.
Shallow gold and silver mineralisation outside historic workings suggests a more extensive system than previously mined. Rock sampling revealing anomalous silver and antimony across the project indicates multiple mineralised zones beyond the main pit. This dispersed pattern offers numerous near-mine extension and discovery opportunities. Diablo’s integrated approach combining historical, geochemical, geophysical, and geological data has established a robust exploration framework, prioritizing early drilling on high-confidence near-mine targets while informing longer-term regional strategies.
Strong Critical Minerals Demand and Utah District Fundamentals Underpin Exploration Strategy
Diablo’s focus on silver-antimony-copper exploration in Utah aligns with robust global critical minerals demand. Silver is increasingly vital for renewable energy, electronics, and batteries, with demand expected to grow alongside the energy transition. Antimony is classified as a critical mineral by key economies including the US, with supply constraints supporting price stability. Copper demand remains high due to electrification, renewables, and battery manufacturing. Utah’s mining district offers proven geology and infrastructure for resource development.
Operating in Utah—a Tier-1 jurisdiction with established mining infrastructure, permitting pathways, and skilled workforce—reduces development risks compared to emerging regions. Historic Horn Silver production validates the mineralisation system and economic viability. Diablo’s exploration aligns with both commodity fundamentals and geological evidence within a mature, infrastructure-rich district, supporting its medium- to long-term strategy to advance discoveries toward development or partnerships benefiting from strong commodity demand.
