Troubled gold producer View Resources announced today that it has gone into voluntary suspension, seeking to restructure the group and its financial position.
The company said it is unlikely that the previous forecast of 30,000 ounces for the first quarter of 2008 will be met due to disappointing first half output.
On Wednesday, View advised gold production at its flagship Bronzewing mine in Western Australia was about 6,500 ounces (oz) in January, down from an expected 10,000oz.
"The tonnes milled were close to budget but the reconciled head-grade was below forecast," View said on Wednesday.
"Immediate future production is being focussed on the Central open pit and the Discovery and Calista underground mines where significant tonnages of ore have already been developed for stoping."
"Mining from the Success pit has been re-scheduled until the June quarter to further improve short-term cash flow."
"A complete review of the various ore sources and production schedules is being undertaken to maximise the return from available assets."
Today the company announced that it had appointed Darren Weaver and Andrew Saker of Ferrier Hodgson as joint and several voluntary administrators of the firm and its subsidiaries by resolution of the board.
"The administrators are working with the board and management to look at options for the restructure of the group and its financial position," View said in a statement.
View bought Bronzewing for $9 million from Newmont Mining Corporation in 2004.
In April last year, View was predicting the mine to have a life of four years at a rate of about 120,000oz gold per annum.
The gold company has had a hard time lately, with the stock price steadily dropping from 52 cents in June to finish January at a measly 18.5 cents.
When View shares were suspended in intraday trade today, they last traded at just 13 cents.
