Independent Review Prompts Cangai Resource Model Revision at Infinity Mining

Independent Review Uncovers Resource Model Flaws

Infinity Mining Limited (ASX:IMI) has revealed that an independent geological consultant has confirmed significant concerns about the accuracy of the historical Mineral Resource Estimate (MRE) for its Cangai Project in New South Wales. The issues center on the block model validation and cut-off grades, where attempts to reproduce the previously reported grade and tonnage figures failed, casting doubt on the reliability of the 2023 JORC-compliant resource estimate inherited from the project’s previous owners.

Revised Resource Estimate Underway

In response, Infinity is moving swiftly to appoint a mineral resource consultant to conduct a thorough re-evaluation of the data, original model, and parameter support, including checks for model registration errors. The company expects this process to take around three months, after which it will publish a definitive revised Mineral Resource Estimate. Until then, the company cautions shareholders and potential investors against relying on the historical resource figures for the in-situ copper deposit known as the Cangai Mine.

Surface Slag Dumps and Orivium Partnership Unaffected

Notably, the review has not raised any concerns regarding the surface smelter slag and ex-mine oxide dumps, collectively referred to as the Cangai Slag Dumps. These remain a separate asset category and are currently the focus of a partnership with Orivium Global Pte Ltd, which continues to progress. This alliance aims to capitalise on ore processing and e-waste recovery opportunities, potentially unlocking near-term value independent of the in-situ resource uncertainties.

Broader Exploration Activities Continue

While the Cangai Project undergoes reassessment, Infinity Mining maintains active exploration across its other tenements in Western Australia, Victoria, and New South Wales. These include high-potential copper and gold targets such as the Hillside project in the Pilbara, where ground exploration and drilling preparations are underway, reinforcing the company’s diversified portfolio approach.

Strategic Implications and Next Steps

The pending revised resource estimate will be pivotal for Infinity’s strategic planning for the Cangai Project, influencing future investment decisions and operational focus. The company’s transparency in disclosing these technical challenges underscores the complexities of resource modelling and the importance of rigorous validation. Meanwhile, the ongoing Orivium partnership and broader exploration programs provide alternative avenues for value creation as the resource estimate is refined.