Diablo Resources (ASX:DBO) completes Phoenix drilling and sets course for expansion in US critical minerals

Diablo Resources Limited (ASX:DBO) has successfully completed its maiden drilling program at the Phoenix Copper Project in Utah and is preparing for a high-impact campaign at the Fair Dinkum Prospect later this year.

With assays from Phoenix now in the laboratory and regional soil sampling programs completed, the company is building momentum while also advancing plans to broaden its portfolio across the US critical minerals sector.

In this Q&A, Lyle Thorne, Chief Executive Officer of Diablo Resources, outlines recent progress, future priorities, and the broader policy backdrop that is shaping the company’s growth strategy.

What has Diablo achieved with its maiden drilling program at the Phoenix Copper Project?

Our maiden drilling program was a significant milestone because it marked the first modern subsurface test of two priority targets, with nine holes drilled for a total of 646 metres across the Philadelphia and Trenton Prospects.

At Philadelphia, six holes were designed to investigate geochemical anomalies beneath the mineralised Philadelphia Fault, where historic workings date back to the early 1900s.

At Trenton, three reconnaissance holes were drilled across one kilometre of strike to test the East Bounding Fault, a structure already known to host copper mineralisation in the Lisbon Valley district.

Samples have been dispatched to the laboratory, with results due in the coming weeks, and the program has laid the foundation for shaping the next stage of exploration.

“Surface samples have been particularly encouraging, averaging 6.29 percent copper with peak values of 45.7 percent copper and 219 grams per tonne silver.”

How does the Phoenix Copper Project’s location add to its prospectivity?

The project sits in the Lisbon Valley Copper district, directly along strike from the Lisbon Valley Copper Mine, which contains over 740 million pounds of copper in resources and is in production today.

Access is great, all year round on sealed and maintained gravel roads.

Our Phoenix Project comprises 315 unpatented lode claims covering roughly 6,300 acres, split between the CC and Stateline claim blocks.

The CC Claim Block lies just five kilometres northwest of Lisbon Valley Copper Corporation’s operations and three kilometres south of the historic Big Indian Copper Mine, district where the same host rocks and structures continue into the Company’s ground.

Similarly, at Stateline, our high priority Fair Dinkum Prospect lies along strike from known coper deposits such as Flyng Diamond in similar host rocks.

What are the next steps for the Fair Dinkum Prospect?

Fair Dinkum is a priority targe and is set to become a major focus with our first drilling program scheduled for the fourth quarter of 2025.

The prospect lies five kilometres southeast of the Lone Wolf Deposit and two kilometres east of the Flying Diamond deposit, on the same regional fault system, highlighting the prospectivity of the district.

At surface, copper mineralisation has been mapped over more than one hundred metres of strike, with peak results of 2.76 percent copper and 92 grams per tonne silver, while averaging 1.12 percent copper and a minimum of 0.19 percent copper.

Planning for the program is underway, and the drilling is expected to provide important insights into the size and consistency of the system beneath outcrop.

Beyond Phoenix, how is Diablo positioning itself in the US critical minerals sector?

While Phoenix remains the flagship project, the company is broadening its scope to review additional opportunities across the US critical minerals sector.

The focus is on commodities such as copper, cobalt, antimony, and rare earth elements, which are classified as strategic by the US government due to their importance to energy technologies and supply chain security.

Evaluating these opportunities gives Diablo the potential to diversify its portfolio and build resilience while positioning itself as a participant in the growing North American critical minerals industry.

“The successful completion of our maiden drilling program at Phoenix represents a pivotal milestone for Diablo. With assays now in the lab and soil sampling programs completed, momentum is building towards a high-impact Q4 campaign at our flagship Fair Dinkum Prospect.”

How do US policy developments support Diablo’s strategy?

The policy environment in the United States is strongly aligned with the company’s objectives.

The US Administration has advanced discussions to establish a five billion dollar mining investment fund, aimed specifically at securing domestic supply of critical minerals.

This measure underscores the government’s determination to reduce reliance on overseas sources and strengthen internal supply chains.

“The US Administration has advanced discussions to establish a five billion dollar mining investment fund designed specifically to secure domestic supply of critical minerals, which demonstrates a clear commitment to reducing reliance on overseas supply chains.”

For Diablo, having projects located in Utah and actively reviewing new opportunities the critical minerals space ensures the company is well positioned to align its work programs with national priorities.

This alignment provides a favourable setting to advance exploration and expand the portfolio in a way that can deliver both strategic and shareholder value.

Looking ahead with confidence

The completion of maiden drilling and the upcoming program at Fair Dinkum reflect the strong progress Diablo Resources is making at Phoenix, while the company’s review of new critical minerals opportunities highlights its broader ambition to strengthen its US portfolio.

With assay results expected shortly and a well-defined pipeline of exploration underway, Diablo is entering an active period of news flow.

As CEO Lyle Thorne notes, the company’s strategy is to build a technically robust and strategically aligned business that can support the development of secure North American supply chains.

With favourable US policy settings and strong demand for critical minerals, Diablo is confident in its ability to deliver meaningful growth as it advances its exploration programs.

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