Diablo Resources has agreed to acquire an 80 per cent interest in the high-grade Horn silver project in Utah, US.
Diablo will acquire 80 per cent interest in Antler Resources LLC (Antler), a US subsidiary of Opal Resources Pty Ltd. Diablo will issue 36 million shares to the seller, and pay the seller a one-off sum of US$750,000.
The Horn Silver project hosts the historic Horn Silver mine, a renowned high-grade producer, having historically yielded approximately 17 million ounces of silver and 30,000 ounces of gold at impressive average grades of 604 grams per tonne (g/t) silver and 1.04 g/t gold.
The acquisition effectively consolidates a district-scale position for Diablo, as the project sits just 15 kilometres from the company’s existing Star Range silver-antimony project. Utah is currently ranked as the number one mining district globally by the Fraser Institute, providing a stable and highly prospective backdrop for the company’s expansion.
Diablo CEO Lyle Thorne said: “The acquisition of the Horn Silver Project represents a significant step forward for Diablo, securing a high-grade historic mine with immediate drill-ready targets and clear potential for expansion.
“Alongside the opportunity to extend mineralisation at and around the historic mine, the broader project area offers substantial upside, with multiple underexplored silver, antimony and copper targets identified across a large, consolidated landholding.”
The project covers 13.2 square kilometres across 201 claims, including 101 patented claims, which offer significant permitting flexibility and are expected to accelerate the commencement of drilling.
The mineralisation in Horn Silver remains open both at depth and along strike. Diablo has already identified multiple drill-ready targets, including shallow high-grade gold-silver zones and several copper-silver skarn prospects.
Historical drilling at the site has previously returned significant intercepts, including 54 metres at 1.4 per cent copper.
To fund the acquisition and jumpstart exploration, Diablo has received commitments to raise AU$3.5 million via a placement of approximately 269,230,769 fully paid ordinary shares at 1.3 cents per share.
The company intends to move rapidly, with upcoming drilling designed to test extensions of the historic mine and several untested geophysical anomalies.
Diablo also plans to combine the upcoming Star Range drilling and broader exploration activities to maximise the value of its district-scale position.
