QUARTERLY REPORT quarter ended 31 March 2005

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HIGHLIGHTS Thirteen combined radiometric and magnetic anomalies identified in the Mary Kathleen uranium area are presently being further investigated by our field personnel. Arrangements have been made for suitable follow-up drilling to commence at Yorkeys Queensland gold tenement. Cultural clearance underway on Duck Creek tenement at Cloncurry. A Columbad magnetic anomaly has been identified as a target for EM surveying and drill testing at Duck Creek. Phase 1 soil geochemical sampling has been completed on Sandy Creek project in Victoria; assays awaited. Further check sampling has confirmed two gold anomalies in the Northern Territory Bloods Range tenement EL 5701. Follow-up sampling by Independence Group NL is scheduled for the last week in April.

YORKEYS PROJECT

Drilltorque Qld. has been contracted to complete a 1,500 metre combined RC/diamond drilling program at the Yorkeys Project (ML 50098, ML 3759, ML 3738) as soon as a drilling rig is available.


CLONCURRY PROJECT Duck Creek EPM 13336

An interpretation was completed by Arctan Geophysical Services on the Columbad 400nT magnetic anomaly, located in the southwest of the Duck Creek tenement. This has indicated a complex folded body that extends from near surface to 500 metres. A surface TEM survey will be conducted to give further insight into the geometry and nature of the causative body prior to drill testing.
Cultural clearance for geophysical surveying and preliminary drill testing is underway.

Mary Kathleen (uranium and copper) EPMs 14019 and 14022

Preliminary interpretation of the regional geophysical data has identified 13 magnetic/radiometric anomalies including a significant radiometric anomaly for immediate follow-up to investigate the potential for uranium and copper. The majority of these anomalies are not associated with known historic workings.

SANDY CREEK EL 4812

A first-pass soil sampling program was completed over the principal old gold workings within EL 4812, Sandy Creek. Samples were collected at 20 metre stations on lines spaced at 200 metres. Assay results are awaited; dependent upon results, infill sampling will be conducted in the next quarter.

BLOODS RANGE ELs 5701 and 5703

Further check analyses were completed as follow-up to the September quarter 2004 regional soil survey. These have confirmed two areas of gold-in-soil anomalism within EL 5701. Two positive anomalies (104.8ppb gold and 5.1ppb gold) were repeated with values of 93.2ppb gold and 3.5ppb gold. The current sample density is 500 metres x 500 metres. The two geochemistry targets are open.
Subject to receiving final access permits, the Bloods Range program will start in late April and will be helicopter supported.

Results from repeat sampling on EL 5703 did not provide sufficient encouragement to continue with further evaluation of this tenement, therefore EL 5703 was handed back to joint venture partners, Messrs Allender, Hosking and Le Brun.

DE ROSE HILL EL2910

A 400 metre x 200 metre spaced soil geochemistry program has been proposed to cover an area where an anomalous rock chip specimen was collected by the pastoralist some time ago. The rock chip sample is currently undergoing petrographic analysis before assaying, with strong staining evident, possibly related to copper oxides. The area has been covered by broad-spaced historical sampling at 1.6 kilometre x 800 metre density. The De Rose Hill program will follow on from the Bloods Range program in April-May.

GAWLER CRATON EL 2899 - Hawks Nest

No work was completed by our joint venture partner during the period.

OTHER ACTIVITIES

Investments

CopperCo Limited
The Company's holding of 5,966,667 shares in CopperCo Limited remains unchanged.

Independence Group NL
The Company's holding of 700,000 shares in Independence Group NL remains unchanged.

STATEMENT
Technical information contained in this announcement was prepared by Trevor Leahey, Exploration Manager Goldsearch Limited, and accurately reflects the information compiled by him. Mr Leahey has in excess of 20 years relevant experience in mineral exploration and mine development.

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98.

Consolidated statement of cash flows

Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities

Non-cash financing and investing activities

Financing facilities available
Add notes as necessary for an understanding of the position.

Estimated cash outflows for next quarter

Reconciliation of cash

Changes in interests in mining tenements

Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Compliance statement

1. This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4).
2. This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 28 April 2005
(Company secretary)

Print name: P S HEWSON

Notes

1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
   
   
2. The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
   
   
3. Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .
   
   
4. The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
   
   
5. Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.