Four High-Priority Copper Targets Identified at Strategic Utah Project
Diablo Resources (ASX:DBO) has identified four high-priority copper targets at its 100% owned Stateline Claim Block, part of the Phoenix Copper Project in Utah's world-class Lisbon Valley Mining District. The project is strategically positioned along strike from the currently producing Lisbon Valley Copper Mine (LVCC), which boasts reserves of 740 million pounds of copper.
Most significantly, Target 1 contains visible copper mineralisation just 2km east of LVCC's Flying Diamond Copper Deposit, presenting an immediate priority drill target. This Diablo Resources copper discovery confirms the company's exploration rationale and enhances the project's potential ahead of planned drilling in Q3 2025.
"Geological reconnaissance of Target 1 located outcropping copper mineralisation along strike on the same structure hosting known copper deposits, confirming the success of the Company's exploration rationale," noted CEO Lyle Thorne.
The announcement comes at an opportune time, as the Stateline Claim Block is positioned to potentially benefit from the US government's recent approval of ten mining projects under the FAST-41 permitting process, including LVCC's Lone Wolf Deposit – a 267 million pound copper resource located approximately 5km northwest of Diablo Resources' copper exploration project.
Stateline Claim Block: Strategic Position in America's Second-Largest Copper State
The Phoenix Copper Project is situated in Utah, which ranked as the second-largest copper producing state in the USA in 2023 with 700 million pounds of production. The Stateline Claim Block specifically consists of 149 unpatented lode claims covering approximately 12km² of Bureau of Land Management (BLM) administered Federal lands.
What makes this property particularly interesting is its location along the same geological structures that host significant copper deposits currently being mined by LVCC. The project area has seen little recent exploration despite being in a highly mineralised district with proven copper production.
Target Analysis: Four Promising Copper Opportunities
| Target | Key Features | Priority Level |
|---|---|---|
| Target 1 | • Located 2km east along strike from Flying Diamond Deposit • Visible copper mineralisation (malachite) in outcrops • Traceable for over 100m before being obscured • Historical drill holes with copper mineralisation observed |
Highest |
| Target 2 | • Fault parallel to Target 1, 1,300m to the south • Minor malachite float observed in altered sandstone and mudstones |
High |
| Target 3 | • Covers the WSW trending basin margin fault • Same fault hosts the producing GTO deposit 7km northwest • Anomalous copper readings detected via handheld XRF |
Medium-High |
| Target 4 | • Southern strike extension of northern bounding fault • Area covered by recent alluvium/colluvium • Historical adit possibly used for uranium exploration |
Medium |
Understanding Sediment-Hosted Copper Deposits
Sediment-hosted copper deposits, which Diablo Resources' copper discovery is targeting, represent some of the world's most valuable copper resources. These deposits form when copper-bearing fluids migrate through permeable sedimentary rocks and precipitate copper minerals at sites of reduced conditions or chemical traps.
This type of deposit is particularly attractive to investors for several reasons:
- Predictable geology: Once the controlling structures and favourable host rocks are identified, exploration can be highly targeted.
- Potential for large size: These systems can host substantial resources, as evidenced by the nearby Lisbon Valley operation.
- Often amenable to low-cost mining: Many sediment-hosted copper deposits can be mined via open-pit methods with favourable strip ratios.
- Processing advantages: The copper mineralisation is often oxidised near surface, making it potentially suitable for lower-cost processing methods.
The visible copper mineralisation (malachite) observed at Target 1 is particularly encouraging, as it provides direct evidence of the copper-bearing system extending into Diablo's property.
Strategic Timing: US Critical Minerals Push and Copper Market Dynamics
Diablo Resources' copper discovery progress coincides with a significant shift in US critical minerals strategy. The Federal Permitting Improvement Steering Council has identified ten critical mineral projects as FAST-41 Transparency Projects, designed to streamline approvals through enhanced interagency coordination. The neighbouring Lisbon Valley Copper Mine is one of these priority projects.
This government initiative could potentially benefit companies exploring for copper in this district, as it signals a commitment to expanding domestic copper production. LVCC has submitted plans to expand operations, including developing the Lone Wolf Deposit and initiating copper extraction through in-situ recovery methods.
From a market perspective, the timing appears advantageous. Copper prices have shown strength, and long-term forecasts suggest a bullish trajectory driven by energy transition demands. Copper's essential role in electrification, renewable energy infrastructure, and electric vehicles positions it as a critical metal for the green economy.
Exploration Roadmap: Clear Path to Drilling
Diablo Resources has outlined a structured exploration programme to advance the Phoenix Copper Project:
-
Current activities (Q2 2025):
- Ongoing soil, stream sediment, and rock sampling
- Detailed geological mapping across priority targets
- Analysis of recently collected samples from Target 1
-
Near-term plans:
- Integration of all data to refine targeting
- Prioritisation of drill locations
- Permitting preparations
-
Q3 2025:
- Maiden drilling programme focused on highest priority targets
- Initial focus on Target 1 given visible copper mineralisation
This methodical approach allows the company to systematically de-risk the project while building a comprehensive understanding of the copper mineralisation controls. Furthermore, the company's exploration approach is similar to recent gold targets announced by Great Boulder Resources at their Side Well Project, demonstrating industry-standard practices.
Why Investors Should Follow Diablo Resources
Diablo Resources presents a compelling investment case based on several key factors:
- Strategic location in a proven copper district with active mining operations nearby
- Direct evidence of copper mineralisation on the property
- Experienced technical team with a proven exploration strategy
- 100% ownership of the Phoenix Copper Project
- Favourable jurisdiction with improving permitting outlook via FAST-41
- Clear timeline to drilling in Q3 2025
- Strong copper market fundamentals driven by energy transition demand
The company's ability to identify visible copper mineralisation at Target 1 provides tangible validation of its targeting methodology. With exploration ongoing and drilling planned for later this year, Diablo Resources' copper discovery potential is positioned at an ideal entry point in the value creation cycle – after initial target identification but before drill testing has commenced.
As copper continues to play a critical role in global electrification trends, junior explorers with quality assets in established mining jurisdictions offer investors exposure to potential discovery upside. In addition, historical drilling results from Chibougamau's copper-gold discovery show that projects in established mining districts can yield significant returns for investors who identify promising exploration plays early.
Key Takeaway:
"Diablo Resources has positioned itself in a world-class copper district with visible mineralisation already identified along strike from producing mines. With a clear path to drilling in Q3 2025 and favourable government initiatives supporting domestic copper development, the company offers investors exposure to copper discovery potential in a tier-one jurisdiction at a time of strengthening long-term copper fundamentals."
Recently, a strategic review of untapped potential in gold discoveries highlighted the importance of being positioned in proven mining districts with existing infrastructure. Additionally, investors should note that other companies like Hammer Metals have launched copper-gold drilling programs which may provide valuable comparison points for Diablo's progress in the coming months.
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