Granite Belt Project nixed as miner enters administration
THE long-touted Granite Belt Project has endured a rocky history and latest developments would indicate the project may never see the light of day.
The two remaining directors of Moreton Resources, Brett Garland and John Haley, tipped the company into administration this week.
Moreton Resources subsidiary MRV Metals were the proponents behind the Granite Belt Project, a silver mine west of Stanthorpe.
One of the administrators, Deloitte operative David Orr, said on Thursday that the company had simply run out of cash.
Moreton suffered a staggering $26.4 million net loss in the last financial year as auditors warned of a "material uncertainty'' about its ability to survive.
Orr now expects to put Moreton's remaining assets, including the mothballed silver mine in the Southern Downs, on the market shortly.
Creditors will hold their first meeting June 22.
There were plenty of signs recently that the company was fast unravelling, including an astonishing churn of directors through the revolving door over the past year or so.
Just last month, Jason Elks, a former chairman and managing director of Moreton, lodged an application to wind up the company in Brisbane Supreme Court.
No defence was lodged before administrators took control.
The Granite Belt Project was a 1,100 square kilometre portfolio of tenements located near Texas.
Previously owned by Alcyone Resources Ltd, work originally commenced on the site in July of 2011, when the former owner commenced silver production.
The project, previously known as Texas Silver, encompasses the Twin Hills Silver Mine, as well as a wider portfolio of advanced silver and polymetallic base metal exploration targets. According to reports previously published by Alcyone Resources Ltd, MRV Metals was confident the project had the potential for a 10 year mine life, targeting silver resources of between 30 and 50 million ounces with base metals discoveries.
Former MRV Metals managing director Jason Elks had previously said in late 2017 that operations were scheduled to be in full flight by January 2018.
But the project had seemingly stagnated, with nothing occurring since that announcement.
Mr Elks had said the mine would be a huge boost for the Granite Belt region, with MRV Metals aiming to use local workers.