Gascoyne shares plummet after double resignation

Gascoyne Resources' share price plunged 55 per cent lower today after the company disclosed managing director Michael Dunbar and chair Ian Murray both resigned last week.

The gold miner has also downgraded its production forecast for the December quarter from its Dalgaranga project to be within a range of 19,000 to 22,000 ounces from a previous forecast of 25,000oz.

Current chief financial officer Mike Ball has accepted the position of interim chief executive after Mr Dunbar resigned with effect from last Thursday, October 25.

Board member Sally-Anne Layman has been appointed chair, replacing Mr Murray, who resigned with effect from last Wednesday.

Mr Murray was appointed chair only three weeks ago, with the company noting this was after undertaking due diligence.

He had replaced Mike Joyce, who has remained on the board with directors Ian Kerr and Mark Le Messurier.

Ms Layman is a director of three other companies within the mining industry - Imdex, Pilbara Minerals and Perseus Mining.

She was previously a division director for Macquarie Bank and in this capacity was instrumental in in the financing of the Dalgaranga project.

Gascoyne’s quarterly report out today identified a series of continuing operational challenges at Dalgaranga.

It noted the project has been affected by a slower mining ramp-up with reconciliation of ore reserves against the feasibility study being below expectations.

The company’s shares closed 54.7 per cent lower at 12 cents today, after touching a low point of 10 cents.

The shares have been on a steady slide since May, when they were trading at 60 cents each.