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Goldsearch (GSE)
Aegis has been commissioned by Goldsearch to be included in the May 2007 Junior Resources Review and has received a fee for its inclusion. This review is freely available at www.shareanalysis.com.
Company Overview
GSE holds assets at various stages of exploration. A key strength is the formation of working partnerships with Native Title holders and attracting suitable farm-in partners. GSE holds in its own right or with JV partners gold projects in VIC, a uranium and rare earth prospect near Mary Kathleen, copper-gold at Duck Creek and gold projects at Yorkeys. The main asset is 49% of the Musgrave Range JV. However, near term, drilling at the Mary Kathleen U Project will hold centre stage.

Strategy
Goldsearch is an Australia-based exploration company focused on the discovery of high-grade precious, base and energy metals mainly in Australia.

Aegis Comments
Outlook: Investors will focus on drilling at the Mary Kathleen uranium project where GSE can earn a 75% interest. Goldsearch (49%) and Independence Group (51%) have signed an agreement for a proposed JV with BHP Billiton to explore tenements in the East Musgrave. This poorly-explored part of the world is very prospective for Cu-Au-U and Cu-Pb-Ag-Zn. BHP can earn up to 65% by spending $25M or delivering a BFS within 10 years. The Musgrave Range provides short and long-term major discovery potential.

Risk: Bureaucratic control and red tape can slow the pace of exploration and development of mines in Victoria, perhaps offset by the prospective nature of geology notably for gold. At Mt Wellington GSE is waiting for the Mineral Council of Australia to negotiate an Indigenous Land Use Agreement with Native Title claimants. An agreement is required to access the Hill 800 gold prospect in entirety. An application to mine U3O8 in QLD might present challenges, dependent on the government of the day.

Share Price Catalyst: Goldsearch has reviewed reports of previous drill programs at the Mary Kathleen uranium project and will begin two drill programs to test a circa 500m extension of known mineralisation. Preliminary test drilling at the Mt Wellington Hill 800 gold prospect in Victoria yielded good results (37m @ 3.3g/t). Sampling and drilling of other prospects will begin when Native Title issues are settled. At the old Sandy Creek Au mine in Victoria GSE is seeking depth potential of high-grade lodes.