Sun Silver Surges Ahead at Diablo with Promising Assay Results and Expanded Drilling Campaign

Key Highlights:

• New drilling confirms broad zones of high-grade silver and gold mineralisation at the Diablo Project in Nevada.
• Updated mineral resource estimate (MRE) planned for Q4 2025.
• Expanded Phase 1 drill campaign with 22 RC holes completed to date.
• CEO Gerard O’Donovan affirms Diablo’s growing potential and strategic value.
   

Sun Silver Ltd (ASX: SS1) has delivered a noteworthy operational update for its flagship Diablo Silver-Gold Project in Nevada, with newly released assay results confirming significant mineralisation across several holes. The news, announced on 18 July 2025, comes amid a broader expansion of its Phase 1 reverse circulation (RC) drilling campaign and reinforces Sun Silver’s bullish outlook on its flagship asset.

With a share price that’s more than doubled over the past year, a market cap exceeding A$104 million, and investor attention firmly focused on its Nevada-based resource, Sun Silver is making strong strides in the North American silver and gold exploration space.

Assay Results: Expanding High-Grade Zones

The standout result from this release was hole DRC0044, which intersected:

• 80.8m @ 71.74 g/t AgEq (53.48 g/t Ag, 0.178 g/t Au) from 64m depth,
  
  
  • including 19.8m @ 189.79 g/t AgEq.
    
     

This adds to previous headline intercepts from DRC0037 and DRC0038, where grades of:

• 38.1m @ 215.95 g/t AgEq and
• 22.9m @ 257.42 g/t AgEq were reported.
  
   

These thick, high-grade zones not only confirm the existing mineralisation model but hint at potential upside as the drilling continues to test along strike and at depth. The company has now completed 22 RC holes as part of Phase 1 and intends to complete up to 7 additional holes, with all data feeding into an updated MRE targeted for Q4 2025 .

Strategic Upside: Expanding the Mineral Resource

Sun Silver’s Diablo Project already boasts a robust foreign mineral resource estimate of 146.6 Moz AgEq. This includes:

• 116.8 million ounces of silver, and
• 472,000 ounces of gold.
  
   

With the new drilling results and geological reinterpretation underway, the upcoming MRE will be the company’s first under JORC 2012 standards. The goal is not just to validate the historical resource but to grow it—particularly given the strong grades reported in recent holes.

CEO Gerard O’Donovan commented:

“The consistency of mineralisation we’re seeing across multiple sections of the Diablo Project is extremely encouraging. These results support our confidence that we are on the path to defining a significant silver-gold resource in one of the most prolific mining jurisdictions in the world.”

Nevada: The Right Project in the Right Place

The Diablo Project is located in the historically productive Silver Peak district of Nevada, a region well known for high-grade silver and gold deposits and surrounded by active operations. The location affords Sun Silver a rare combination of geological potential and jurisdictional stability.

This context is crucial. With U.S. interest in domestic precious and strategic metal supply at an all-time high—driven by inflation hedging, green infrastructure, and reshoring policies—Sun Silver finds itself in the right place at the right time.

What Comes Next?

Here’s what investors should be watching in the coming months:

These milestones are expected to support feasibility planning and de-risk potential development pathways.

Analyst Insight: A Defining Inflection Point

Sun Silver is transitioning from early-stage explorer to advanced project developer. The combination of thick mineralised intercepts, systematic drilling, and the planned resource upgrade suggests a value inflection point is approaching.

Several factors elevate Diablo above your typical silver-gold play:

• Jurisdictional premium: U.S. based projects, especially in Nevada, attract higher valuations.
• Dual metal exposure: Silver and gold offer both industrial and monetary hedges.
• Scalable exploration: Phase 1 has tested only a portion of the known trend—room remains to grow.
  
   

Moreover, the company’s strategic focus on upgrading historical resources reflects a disciplined approach that could appeal to institutional investors as it matures.

Solid Steps Toward a Significant Silver-Gold Asset

Sun Silver’s latest operational update confirms it’s not just drilling holes—it’s drilling value. With strong assay results, a clearly defined timeline toward a new mineral resource, and confident leadership, the company is poised to establish Diablo as one of the most attractive emerging silver-gold assets in Nevada.

As exploration momentum builds and the market awaits the Q4 MRE, Sun Silver is clearly a name to watch for investors looking to capitalise on quality discoveries in proven jurisdictions.

At the time of writing this article, Sun Silver shares are trading at A$1.043 as of 18 July 2025.