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Infinity Mining Ltd (ASX:IMI) is set to acquire the Cangai copper project in New South Wales – comprising three exploration tenements and hosting the historic Cangai copper mine, which produced 5000 tonnes of copper between 1904 and 1917, in addition to significant amounts of gold and silver.
Infinity has entered into a Binding Agreement with Castillo Copper Ltd (ASX:CCZ) to purchase the tenements – located in the state’s northwest – and hold an inferred insitu mineral resource estimate (MRE) of 4.4 million tonnes (Mt) at 2.5% copper (Cu) and an indicated MRE of 0.2Mt at 1.35% Cu.
The MRE is based on historic stockpiles at the mine.
The Cangai mine was renowned for its high-grade ore – reaching between 7 and 10% copper – with this being taken from the rich sulphide ore bodies of the territory.
More recently, the project has been subjected to both reverse circulation and diamond drilling, with the former picking up 10.25% Cu, 6.04% Zn (zinc) and 32.5g/t Ag (silver), with a best intersection of 11m at 5.94% Cu from 40m including 1m at 10.25% Cu, 3m at 8.1% Cu and 1m at 7.53% Cu from 41m.
The diamond drilling meanwhile, has revealed results such as 14.45% Cu, 5.93% Zn & 40.1g/t Ag, including best intersection of 4.39m @ 5.06% Cu, 2.56% Zn and 20.1 g/t Ag from 49.9m.
Executive Chairman Joe Phillips said the acquisition presented Infinity with significant upside at the right time.
“The acquisition of the Cangai Copper Project represents a significant opportunity for Infinity Mining, aligning with our recent acquisitions announced on 15th August 2024,” he said.
“With rising copper demand and the project’s outstanding historical grades, we are eager to unlock its full potential through targeted exploration and development, creating additional value for our shareholders.”
Infinity has been trading at 4.3 cents.
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