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PERTH (miningweekly.com) – ASX-listed Carbine Resources has pulled the plug on its Mount Morgan gold project, in Queensland, after failing to reach agreements with project stakeholders.
Carbine in February warned shareholders about the future of Mt Morgan, after an economic review determined that the project would not generate adequate returns to justify development.
The project was expected to have an all-in sustaining cost of some A$862/oz, compared with the A$549/oz estimated in a 2016 feasibility study, and along with an A$87-million preproduction capital expenditure, meant that the gold operation would not generate adequate shareholder return.
Carbine said on Friday that it had been unable to achieve any meaningful outcomes with the project stakeholders to improve the terms of the various agreements associated with the project, in order to increase returns to an acceptable level.
In addition to immediately suspending all project expenditure, and stopping all work associated with the Mt Morgan project, Carbine has also taken the decision not to exercise its option to acquire the remaining 25% sake in the project from Raging Bull Mining.
Meanwhile, MD Tony James has given notice of his resignation, while John Fitzgerald and Graham Brock have resigned as directors, effective immediately.
Company secretary Oonagh Malone will join the board, effective immediately, while Evan Cranston has been appointed as nonexecutive chairperson.