CEO Peter Breese could barely have finished unpacking boxes in his new office at TSX-listed gold-miner GBS Gold International before the company announced on Thursday that he had resigned the post.

Breese was the COO of nickel-miner LionOre Mining International when it was acquired by Norilsk Nickel, and more recently headed the group's international mining and metallurgy operations, before taking the position of CEO at GBS, effective August 1.

He had now resigned the position “in line with the company's restructuring plans and for personal reasons, by mutual agreement,” GBS said in a statement on Thursday.

Breese will continue to advise the company, and chairperson Gil Playford will also serve as CEO.

Long-time COO Tony Simpson has also resigned, and will be replaced by Grant Davey.

Shares in the company slid 39,3% on Thursday, to C$0,255 a share by 13:51 in Toronto.

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 company announced on Wednesday that it had completed a strategic review of its operations, and would 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.

After battling high costs and production disruptions this year, the company likely will need to complete a fundraising, and is pursuing “various financing options”, the firm said.

While it expects to meet its production targets for 2008, output is expected to be lower in 2009, the firm said.

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