Transcription of Finance News Network Interview with Goldsearch Limited (ASX:GSE) Executive Director, John Percival
Lelde Smits: Hello I’m Lelde Smits for the Finance News Network and joining me from Goldsearch Limited (ASX:GSE) is Executive Director, John Percival. John welcome to FNN.
John Percival: Thank you, it’s very nice to be here.
Lelde Smits: Could you start by introducing Goldsearch. When was the Company established and what is your focus?
John Percival: We were established about 1992, current Board has been in operation since 1995 and we have two main areas of exploration activity, because we are a mining exploration company – Queensland and South Australia.
Lelde Smits: Looking closer at your activities as a mineral explorer, what are your projects prospective for?
John Percival: In Queensland we’re looking for copper and we’re on the Mt Isa Inlier which is a very well-known large area, which has the Mt Isa mine on it. And just recently, they found Merlin which is a very large molybdenum deposit, but it’s a very well-known mineralised zone. So we’re quite excited about that. And then in South Australia, we’re looking for nickel, copper, gold and gold in Queensland as well, and uranium.
Lelde Smits: In Queensland you have the Mary Kathleen JV. What have been this year’s [2012] highlights?
John Percival: I suppose the highlights would have been the use of the EH4 technology in Queensland, where the Chinese joint venture partner which is Chinalco Yunnan Copper Resources (ASX:CYU), they brought in the EH4 technology from China. And they found that it indicated we had a deposit that could go to over 1,000 metres or 1,200 metres deep. So we decided to put a hole into this particular body, which is Elaine 1 and it seems to be coming up with some pretty substantial results.
Lelde Smits: And what is your exploration strategy over the next year [2013]?
John Percival: Our next year will be spent looking at the shear zone which goes for about 12 kilometres, that includes the Mary Kathleen uranium mine. And we would be using the EH4 technology to actually expand the opportunity we have.
Lelde Smits: Goldsearch also has an agreement with Queensland Mining Corporation Limited (ASX:QMN) at the Duck Creek Project, also in Queensland. What are the terms of the agreement and what’s currently happening at the project?
John Percival: Well they can earn 75 per cent of the Duck Creek area. And we’re presently, you know reasonably comfortable, with the thoughts that they’re going to find some serious copper.
Lelde Smits: Across Australia Goldsearch also has a presence in South Australia and Victoria. At what stage is exploration?
John Percival: Well in South Australia, we used to have our own areas in the Musgrave Block, which was the last underexplored area of Australia because it was in a reserve, an Aboriginal reserve. And no-one was allowed to get in there since the Seventies to do any work. But we put our areas in with Barrick Gold Corporation (NYSE/TSE:ABX) and with a number of other companies, to a new company called Musgrave Minerals Limited (ASX:MGV). And Musgrave Minerals is now doing some very, very serious work in the north of South Australia on the Musgrave Block. And also, we’ve just done a joint venture at Menninnie Dam and that is a silver/lead/zinc project. And we’re very hopeful of getting some serious opportunity there.
Lelde Smits: Turning to Goldsearch’s portfolio of investments. What companies do you currently hold interests in?
John Percival: Well of course, the Musgrave Minerals situation is we hold a 7.17 per cent holding, plus some options. And our major trading investment was Morning Star Gold (ASX:MCO), but they unfortunately are suspended at present. And we’re just hopeful that that’ll come back on the boards and maybe, we’ll be able to take some profit from them. We’ve done very well in our investments in the past and I would say we’ve made between 20 and 50 per cent on our investment portfolio.
Lelde Smits: And finally John. As we head into the New Year [2013], what will be Goldsearch’s main priority?
John Percival: The first would be Queensland and that is the expansion of the Mary Kathleen joint venture. This is becoming very important to us. We have a JORC resource there at the moment of 147,000 tonnes of copper, plus about 75,000 to 100,000 ounces of gold. But that’s only on one particular body, we think we have between six and 10 bodies on this particular shear zone. So there’s a lot to happen in the future.
Lelde Smits: John Percival, thank you for the introduction to GoldSearch.
John Percival: OK, thank you very much.
Ends
ZNO Price at posting:
1.1¢ Sentiment: None Disclosure: Held
