Diablo Resources (ASX: DBO) secures Horn Silver and funds district scale drill strategy

Diablo Resources (ASX:DBO) Chief Executive Officer Lyle Thorne spoke with MarketOpen to further discuss the company’s acquisition of an 80% interest in the Horn Silver Project in Utah and the accompanying $3.5 million capital raising. The transaction introduces a historic high grade silver producer into Diablo’s portfolio, alongside a claim position covering approximately 13.2 km² across 201 claims, including 101 patented claims.

The project is located within a historically active mining district and sits approximately 15 km from Diablo’s Star Range Project, providing an expanded footprint across the region. Historical production of approximately 17 Moz of silver and 30,000 oz of gold at reported grades of 604 g/t Ag and 1.04 g/t Au provides context for the scale of the system, although these figures are not JORC compliant and require verification.

The discussion focused on how the acquisition changes the company’s operating scale, what has been validated through existing datasets, and how capital will be deployed across near term drilling and broader exploration activity. It also addressed the sequencing of work programs as Diablo moves to test multiple targets across Horn Silver and Star Range.

What materially changes for Diablo in scale, control and sustained news flow following this acquisition?

We have  signed a binding agreement to purchase 80% of Antler Resources, who have an option over 101 patented claim and also own 100 unpatented claims that form the Horn Silver Project.

The acquisition expands our project footprint and changes the scale at which we can operate within the district which provides greater control and flexibility over how we plan and execute exploration programs. This is important from a practical standpoint, as it supports more efficient permitting and allows us to progress work programs without the same level of constraint.

In terms of activity, the project introduces multiple drill ready targets supported by historical exploration, including  drilling, geophysics and surface sampling.

This provides a basis to plan drilling across a number of areas rather than relying on a single target. Our Star Range Project is located approximately 15 km away, and the two projects share a similar geological setting and the same polymetallic mineralisation signature. That means every dollar we spend on geology, targeting and logistics in one project compliments our understanding of the other.

There has been a large amount of exploration and historical work already completed. How does this help with target definition and moving forward?

It’s a meaningful head start. We’ve inherited a fantastic dataset spanning geology, geochemistry, geophysics and drilling — much of which has not been revisited with modern-day exploration techniques. That allows us to rapidly re‑rank targets, validate historical interpretations, and advance toward drilling without the usual early‑stage uncertainty. The result is a compressed timeline, reduced technical risk, and more efficient allocation of exploration capital.

How does the patented claim position translate into faster and more capital efficient drilling?

The patented claim position supports a more efficient pathway to drilling. With 101 patented claims, the permitting process is expected to be more streamlined, reducing the time between target definition and drilling. This enables us to move more quickly from data interpretation into field activity, which is important when managing capital and maintaining exploration progress.

By combining a more straightforward permitting pathway with defined drill targets, we can allocate capital toward testing and validating mineralisation as a step toward potential resource definition.

How will capital be prioritised between near mine drilling at Horn Silver and broader district targets including Star Range?

“Exploration dollars will be directed to the highest‑impact opportunities across both projects.

At Horn Silver, near‑mine drilling will be prioritised to test extensions to the historic high‑grade system, together with testing priority regional targets identified form the geophysical, geological and geochemical datasets, notable the Gossan and Buckhorn Targets.

In parallel, exploration capital will be directed to the maiden drilling of our priority North Star Prospect  at Star Range — ensuring we continue momentum to build scale and optionality.

This approach allows us to direct capital toward areas with existing support for drilling while continuing to build a broader pipeline of targets across both projects.

What news flow should  investors  be watching over the coming months?

The next few months are expected to be very active for the Diablo Resources. Key milestones include finalising permitting and logistics and commencing drilling at the North Star Prospect at Star Range, which we plan to commence as soon as approvals are in place. We are keen to begin testing the subsurface potential indicated by high‑grade surface samples and strong geophysical anomalies.

In parallel, at Horn Silver we are advancing district‑scale targeting and interpretation to finalise initial drill programs. This work continues to highlight multiple new targets beyond the historic Horn Silver Mine. We anticipate drilling a number of priority targets at Horn Silver throughout the remainder of the year.

Please note the following valuable information before using this website. 

Independent Research 

Market Open Australia is intended to be used only for educational and informative purposes, and any information on this website should not be taken as investment advice or guidance. It is important to conduct your own research before making any investment decisions, which should be based on your own investment needs and personal circumstances. Any investment decisions based on information contained on this website should be taken in line with independent financial advice from a qualified professional or should be independently researched and verified.