Carbine Resources Ltd. said March 23 that it will cease project expenditures and stop all work at the Mount Morgan gold-copper project in Queensland, Australia, effective immediately.
The decision to stop work is a result of the company not being able to improve the terms of agreements associated with the project to increase returns to an acceptable level.
The company previously decided to minimize expenditures at the project following an economic review that estimated higher all-in sustaining costs of A$862 per ounce.
In addition, an option to consolidate the ownership of the project by acquiring the remaining 25% stake will no longer be exercised.
Meanwhile, Managing Director Tony James and directors John Fitzgerald and Graham Brock resigned from Carbine, effective immediately. The company named Evan Cranston as nonexecutive chairman, with Oonagh Malone as director.