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Transcription of Finance News Network Interview with Goldsearch Limited (ASX:GSE) Executive Director, John Percival



Joel Spreadborough: Hello I’m Joel Spreadborough for the Finance News Network. Joining me today from Goldsearch Limited (ASX:GSE) is its Executive Director, John Percival. John welcome back to FNN.



John Percival: Thanks Joel thanks for inviting me back again, and I’m sure we’ve got some good things to say.



Joel Spreadborough: Goldsearch has just completed a cash issue with its shareholders. Tell me; what was it for and where has it placed you?



John Percival: The cash issue was a - we were trying to raise enough to keep us going. And shareholders fortunately came to the party, and directors put in some hundreds of thousands of dollars. And so we raised $1.6 million, which is about 30 per cent of the issue which I thought was quite successful under current conditions. That was at one cent for a share and an option, and we’re fairly pleased with that, it gives us enough to keep us going for the next 12 months.



Joel Spreadborough: All right, so let’s first take a look at the Mary Kathleen joint venture in Queensland. What are the exploration highlights thus far in 2013?



John Percival: I think that the JORC Resource last year, which gave us 26.5 million tonnes of copper and some gold which was quite good, but it’s not enough at this stage. Now we’ve got another project called Blue Caesar, which is not so far away from Elaine which the original resource is on. And we’re expecting to get some pretty good results there.



Joel Spreadborough: Great, can you tell us about your targets?



John Percival: Well the targets at Blue Caesar, we’ve got three targets at the moment, one of them is pretty close to the border, so we’re not quite sure whether we’ll be able to drill that or not. But the other two are quite strong and we’re quite confident that we’re going to be able to upgrade the total resource, because it’s only 600 metres or 700 metres away from Elaine. Now if we can actually join both deposits, it means that our JORC resource situation may change quite dramatically. Under those circumstances, it may give us a much greater profile.



Joel Spreadborough: So obviously the region itself is quite populated by miners. What is it that you think will give Goldsearch the edge when it comes to exploiting the resource?



John Percival: I think it would be probably the size of the deposits. And therefore, if we’re successful on doing on the shear zone at the moment, the opportunity of revisiting Mary Kathleen mine itself which was closed - back in the Seventies I think it was, the Government has that at the present time. But I’m sure the Government want mining activity to get going again on this area. So we would like to think that we’ve got a good opportunity of extending our resource, right through the 12 kilometres.



Joel Spreadborough: John let’s talk now about the Duck Creek project in Queensland. What’s the latest?



John Percival: Duck Creek, we’re just holding that in abeyance at the moment because Queensland Mining Corporation Limited (ASX:QMN), our joint venture partner, they’ve had a change of management. And they’re just reviewing their whole structure at the present time. But we do have two very, very strong copper opportunities there which will be followed up. But just at the moment, we’re just waiting to see how Queensland Mining Corporation handle their program.



Joel Spreadborough: Now John we’ll turn to your holding in South Australian company, Musgrave Minerals Limited (ASX:MGV). What are the current highlights from its project stable?



John Percival: We’ve had some drilling and the drilling came up with a new zinc/silver/gold prospect at Tank Hill, that’s just been announced. And most importantly, it gave the team a lot of confidence because the actual models that they’ve been working on seemed to be proving to be correct. This was the first result of seven and the first assay results from seven, but I think that the other results won’t be as good as the first result.



Joel Spreadborough: Are you able to give us a bit of an update on Goldsearch’s other investments?



John Percival: We have a small gold opportunity in Victoria, which we’re just holding at the present time. There’s about 50,000 ounces there, but it’s in a more difficult area to mine. So we’ll hold that until somebody wants to do a joint venture with us, or the price of gold goes up.



Joel Spreadborough: Finally John, what are Goldsearch’s main priorities for the rest of the calendar year?



John Percival: Well we have been looking at other joint venture opportunities and the directors are very conscious of the fact that we’re in joint ventures, and we’re not really in control. So they would like to get something that is 80 or 100 per cent owned by Goldsearch itself. So we’re looking at two or three opportunities, if they come through, well that may be a slight change in direction. But at the moment of course, our prime focus is on Mary Kathleen.



Joel Spreadborough: John Percival, thank you very much for the update on Goldsearch.



John Percival: Thank you.



Ends