TSX-listed GBS Gold, which sent its shares plunging last week when it announced that production would decline next year, and that newly appointed CEO Peter Breese had resigned, expects to complete a review of its assets and prospects by the end of September.

Management is conducting a detailed review of the company's “operations, internal growth projects and financing requirements”, with a focus on the firm's short-term mine schedule and cash resources.

GBS produces gold from its Union Reefs operations in the Northern Territory of Australia, which encompasses several underground and openpit mine sites, the Union Reefs processing plant, offices and two mine camps, and also holds exploration properties in Western Australia and Canada.

The firm warned last week that, after operational difficulties and inflationary pressures, group cash costs would exceed forecasts of between $630/oz and $660/oz this year and that, while 2008 production forecasts would be met, the company expected that output would be lower in 2009.

A day later, GBS said that Breese - previously international mining and metallurgy operations chief at Norilsk Nickel - had resigned, and that chairperson Gil Playford would assume the role of CEO.

The firm now plans to focus on its higher grade underground mines, specifically the Brocks Creek and Tom's Gully mines, going forward, in a bid to improve cash flows and reduce costs.

“Plans to stabilise production and operating cash flows for the remainder of the year are being finalised for implementation,” GBS said in a statement on Thursday.

Discussions were also under way with key shareholders, noteholders and lenders regarding future financing plans.

GBS shares gained 17,4% on Thursday, to C$0,135 a share by 15:59 in Toronto.

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