Quarterly Report - for the period ended 30 September, 2002

Summary

1. Musgrave Block project

Work area clearances have been completed on four exploration licences (ELs 9407, 5702, 9443 and 9741). Field exploration activity is expected to commence in the December quarter. Subject to availability, a helicopter supported visit to the area, to substantiate geological structures identified as being of particular interest from the database compiled from past records, is scheduled to take place during the December quarter. This will be the first visit by mining company geologists in over 20 years. EL 9443 has a particular magnetic copper-gold-iron oxide target which could be of significant interest. The four licences cover an area of approximately 1,900 square kilometres and are prospective for base metals, silver and gold. Goldsearch holds 100% equity in EL 9407 and can earn up to a 75% interest in ELs 22710, 5702, 9443 and 9741.

Independence Gold NL will fund and manage exploration on behalf of Goldsearch and its joint venture partners in return for the opportunity to earn 51% of the equity held by Goldsearch.

2. Duck Creek project

In the previous quarter, access agreements were concluded with the Mitakoodi and Kalkadoon People for exploration permits for minerals on EPMs 13273 and 13336. The Queensland Department of Natural Resources and Mines has since advised that the list of registered claimants for the Kalkadoon People was amended and a new agreement has to be signed. Once this and other agreements with the local communities are finalised an initial field reconnaissance sampling and mapping survey will proceed.

3. St Arnaud prospect

The Company has reduced the area under application from 311 square kilometres to 59 square kilometres. The St Arnaud prospect is located 100 kilometres west of Bendigo in Victoria. The tenement includes the Lord Nelson reef system that was one of the top twenty Victorian gold mines and produced in excess of 10 tonnes (330,000 ounces) of gold to over 1,000 metres depth. Gold was still being mined from the Comstock lode as recently as 1997. The Company's future exploration will concentrate on a north-east cross faulted structure that extends for many kilometres on either side of the Lord Nelson reef system with anomalous surface geochemical and co-incident geophysical images.

4. Hawks Nest project

The joint venture with Phelps Dodge Australasia Inc (PDA) to explore the base metal potential of the Hawks Nest tenement (EL 2899) which covers an area of 324 square kilometres and is located approximately 100 kilometres north-west of Coober Pedy, South Australia is progressing. PDA plan a site visit during the December quarter and a detailed work program is being assessed. Under the terms of the agreement PDA can earn up to 70% equity in the tenement by contributing $4,000,000 in exploration expenditure. PDA will spend a minimum of $100,000 within the next 18 months.

5. Appointment of director

On 7 August 2002 Mr Robert B Leece, AM RFD was appointed as a director of the Company to fill a casual vacancy on the board.

EXPLORATION ACTIVITIES

Independence Gold NL joint venture

Compilation of a comprehensive database for the entire Musgrave Block region has been completed by the Company's joint venture partner Independence Gold NL (Independence). It includes all publicly available geological, geochemical, mineral occurrence, aeromagnetic, gravity and selected Landsat data. Fifty priority exploration target areas within tenements subject to the joint venture have been generated and exploration is ready to commence as soon as access is available. The following table summarises priority exploration targets currently defined;

Target model	Commodity	Number of targets
Magmatic Ni-Cu (Voisey's Bay/WMC West Musgrave)	Ni, Cu, (Co, Au, PGE)	16
Proterozoic Cu-Au-Fe-oxide (Olympic Dam)	Au, Cu	13
Stratabound base metals (Broken Hill)	Pb, Zn, Ag, Cu	7
Lode and shear hosted gold (Granites Tanami, Pine Ck)	Au, Ag	7
Sediment hosted copper (Zambian Copper Belt)	Cu, Co, Ag	4
Kimberlite, lamproite diatremes (Argyle AK1)	diamonds	3

One of the nickel sulphide targets contains a prospect defined by Kennecott Exploration in the early 1970's. Nickel/copper sulphides were intersected immediately adjacent to a troctolitic dyke. The dyke, which is approximately 16 kilometres long, represents a high priority target by analogy to the giant Voisey's Bay nickel copper deposit where all significant sulphide mineralisation is hosted by troctolitic intrusions.

Work programs, comprising regional reconnaissance surveys for ELs 9407, 5702, 9443 and 9741 located in the northern Musgrave Block of the Northern Territory, have been prepared by Independence and approved by the Central Land Council. Field work is expected to commence during the December quarter.

Exploration licence EL 22710 was granted during the last quarter for a period of six years .

Queensland

DUCK CREEK - CLONCURRY
EPMs 13273 and 13336 (95%)
Access agreements were concluded with the Mitakoodi and Kalkadoon People for exploration permits for minerals on EPMs 13273 and 13336, however a new agreement is to be signed with the Kalkadoon People. A work program is currently being finalised and a meeting with local communities is expected in the near future.

South Australia

MUSGRAVE BLOCK
PITJANTJATJARA LANDS
ELAs 198/96, 260/96, 262/96 (50%) and ELAs 336-343/96, 534/96, 35/99 (100%)
The Company is awaiting permission from the Minister for Primary Industries and Resources to negotiate with Anangu Pitjantjatjara for permission to carry out exploration.


MUSGRAVE BLOCK
NON-PITJANTJATJARA LANDS
ELA 2910 (100%) and EL 2435 (100%)
Exploration licences EL 2910 (formerly EL 2245) De Rose Hill, and EL 2435 Ungalootanna Hill, are located in the eastern Musgrave Block region of South Australia. Prospective rocks of Archaean and Proterozoic ages outcrop within the area and anomalous copper, gold, uranium and nickel grades have been reported in equivalent rock units in adjacent areas.

Exploration targets have been defined and the Company has initiated negotiations with native title parties to formulate an agreement to allow exploration work to be undertaken. Exploration within these licence areas will be funded by Independence Gold NL under the joint venture agreement.


GAWLER CRATON
HAWKS NEST
EL 2899 (100%)
EL 2899, which covers an area of 324 square kilometres, is located in the northern sector of the Gawler Craton in South Australia approximately 100 kilometres north-west of Coober Pedy. The area contains a regional magnetic anomaly and targets defined by previous calcrete sampling and is considered prospective for iron oxide-copper-gold mineralisation similar to Olympic Dam and Broken Hill silver-lead-zinc mineralisation.

During the December quarter personnel from Phelps Dodge Australasia Inc. (PDA) our joint venture partner will visit the site and assess a detailed work program. Under the terms of the joint venture agreement, PDA can earn up to 70% equity in the tenement by contributing $4,000,000 in exploration expenditure. PDA will spend a minimum of $100,000 within the next 18 months.
.

OTHER SOUTH AUSTRALIAN AREAS

MOUNT OGILVIE
EL 2933 (100%)

EL 2933 (formerly EL 2267) was granted during the last quarter for a period of one year. This tenement covers an area of approximately 240 square kilometres and is located 30 kilometres north-east of Leigh Creek in the northern Flinders Ranges. High grades of gold and silver have been mined from the area with ores of cobalt, nickel and arsenic.

The Company is investigating options regarding exploration of the area including participation by other parties.

Northern Territory

MUSGRAVE BLOCK NORTH
EAST BLOODS RANGE AND PETERMANN JOINT VENTURE
ELs 9407 (100%) and ELs5702, 9443, 9741 and 22710 (up to 75%)
ELAs 9863 (100%), and ELAs 5701, 5703, 6847, 9740, 10315, 22687, 22688, 22689 and 22690 (up to 75%)

These tenements are located in the northern Musgrave Block and are considered prospective for base metals, silver and gold. Base metal occurrences (copper and lead) in quartz filled shear zones with some gold and silver were reported in ELA 5701 by the Bureau of Mineral Resources during a reconnaissance survey carried out during 1962. A sample from an undeformed quartz vein collected recently by the Northern Territory Department of Mines and Energy from within ELA 5701 has reported anomalous silver (89 gms/tonne), lead (2.1%), copper (1.9%) and gold (101 ppb). Elevated chromium (550 ppm) and nickel (1,000 ppm) have been reported from a sample of laterised peridotite collected to the south of the ELAs.

Exploration licence EL 22710, located in the Musgrave Block region of the Northern Territory, has been granted to Goldsearch for a period of six years.

Proposals for the consent to the granting of an exploration licence have been submitted to the Central Land Council in respect of ELAs 5701 and 5703. Recent correspondence and discussion with them indicates that work area clearances are now taking place with the expectation of an Exploration Deed being drafted during the December quarter. It is hoped that this will enable a continuation of the exploration program beyond the current cleared areas with a substantial increase in target areas by mid next year.

ELs 5702, 9407, 9443 and 9741 have been granted and cover an area of approximately 1,900 square kilometres. A number of exploration targets have been defined based on circular magnetic features considered prospective for copper-gold-iron oxide ore deposit models similar to Olympic Dam and sediment hosted styles of base metal mineralisation similar to that of the Zambian Copper Belt. Targets with potential for gold bearing polymetallic quartz lodes will also be investigated. Independence will fund and manage exploration on behalf of Goldsearch and its joint venture partners. Work area clearances have been finalised and exploration is expected to commence during the current field season, with an initial visit to the area expected during the December quarter.

Proposals for the consent to the granting of an exploration licence have been submitted to the Central Land Council in respect of ELAs 22687, 22688, 22689 and 22690.


MOUNT PATRICIA
ELA 9636 (100%)
The application is currently under veto following a decision by the Central Land Council to refuse to consent to the grant of an exploration licence. The Company has asked its Northern Territory advisor to recommence negotiations for an exploration licence in accordance with statutory procedures.

New South Wales

MORUYA GOLD MINES
ELA 1916 (100%)

In May 2002 Goldsearch applied for an exploration licence over the Moruya Goldmines, located 333 kilometres south-south-west of Sydney. From 1901 until 1951 this area produced over 20,000 ounces of gold underground. A major drilling program in the 1980's by Browns Creek Gold Mines identified over 30,000 ounces of contained gold in three closely spaced prospects. A recent field appraisal identified a small open-cut resource at one of these prospects that requires grid drilling to further extend drilled resources. During the December quarter the Company expects to have discussion with the local Walbunga People to advance the opportunity for exploration.


Victoria

ST ARNAUD
ELA 4669 (100%)
The St Arnaud prospect is located 100 kilometres west of Bendigo in Victoria. The Company has reduced the area under application from 311 square kilometres to 59 square kilometres. The area covered by the exploration licence application includes the Lord Nelson reef system that was one of the top twenty Victorian gold mines and produced in excess of 10 tonnes (330,000 ounces) of gold to over 1,000 metres depth. Gold was still being mined from an open-cut on the north-west extension of the Lord Nelson reef system (the Comstock lode) as recently as 1997. The Company's geologists have identified a cross faulted structure that extends for many kilometres on either side of the Lord Nelson reef system with anomalous surface geochemical and co-incident geophysical images that will be followed up by drilling during the next quarter.

Now that Goldsearch has secured a land position in Victoria, several other companies with tenements containing gold resources have offered their areas for joint venture. The Company is evaluating joint venture opportunities on other exploration tenements close to Bendigo.

TECHNOLOGY INVESTMENTS

CAPIX

Goldsearch retains a 14.8% minority interest in Melbourne based IT software company Capix. Capix is continuing to market and develop its suite of internet banking, broking and corporate treasury software systems. The directors of Goldsearch are monitoring the progress of Capix and will seek to maximise the return from this investment when a suitable opportunity for sale arises.


STATEMENT
Technical information relating to exploration projects in this report was prepared by Mr David Hawley, Grad Dip Env Sc, B.Geo Sc (Hons), MAusIMM, AIG and accurately reflects the information compiled by him. Mr Hawley has over five years ore reserve estimation experience and complies with the JORC code for ASX reporting of company reserves and resource estimates.

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

Name of entity

Goldsearch Limited

ACN or ARBN		Quarter ended ("current quarter")
73 006 645 754		30 September 2002

Consolidated statement of cash flows

Cash flows related to operating activities		Current quarter $A'000	Year to date (3.months) $A'000
1.1	Receipts from product sales and related debtors	-	-
1.2	Payments for (a) exploration and evaluation (b) development (c) production (d) administration	(38) - - (144)	(38) - - (144)
1.3	Dividends received	-	-
1.4	Interest and other items of a similar nature received	7	7
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Other (provide details if material) - funds received during the quarter from settlement of litigation	-	-
	Net operating cash flows	(175)	(175)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets	- (4) -	- (4) -
1.9	Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets	- - -	- - -
1.10	Loans to other entities	-	-
1.11	Loans repaid by other entities	-	-
1.12	Other (provide details if material)	-	-
	Net investing cash flows	(4)	(4)
1.13	Total operating and investing cash flows (carried forward)	(179)	(179)

1.13	Total operating and investing cash flows (brought forward)	(179)	(179)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	-	-
1.15	Proceeds from sale of forfeited shares	-	-
1.16	Proceeds from borrowings	-	-
1.17	Repayment of borrowings	-	-
1.18	Dividends paid	-	-
1.19	Other (provide details if material)	-	-
	Net financing cash flows	-	-
	Net increase (decrease) in cash held	(179)	(179)
1.20	Cash at beginning of quarter/year to date	791	791
1.21	Exchange rate adjustments to item 1.20	-	-
1.22	Cash at end of quarter	612	612

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

		Current quarter $A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	24
1.24	Aggregate amount of loans to the parties included in item 1.10	-
1.25	Explanation necessary for an understanding of the transactions
	- Directors' fees & expenses 21,847 - Directors' superannuation 369 - Legal fees paid to Landerer & Company (J Landerer) 2,085

Non-cash financing and investing activities

2.1	Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
	N/A

2.2	Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest
	N/A

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

		Amount available $A'000	Amount used $A'000
3.1	Loan facilities	Nil	N/A
3.2	Credit standby arrangements	Nil	N/A

Estimated cash outflows for next quarter

		$A'000
4.1	Exploration and evaluation	100
4.2	Development	-
	Total	100

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter $A'000	Previous quarter $A'000
5.1	Cash on hand and at bank	598	777
5.2	Deposits at call	14	14
5.3	Bank overdraft	-	-
5.4	Other (provide details)	-	-
	Total: cash at end of quarter (item 1.22)	612	791

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed	EL 2435 ELA 4669	Replaced by EL 3031 over the same area Reduced from 311 sq. kms to 59 sq. kms	100% 100%	0% 100%
6.2	Interests in mining tenements acquired or increased	EL 3031	Replaces EL 2435 over the same 469 sq kms area	0%	100%

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.

		Total number	Number quoted	Issue price per security (cents) (see note 3)	Amount paid up per security (cents) (see note 3)
7.1	Preference + securities (description)	Nil	N/A	N/A	N/A
7.2	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions	N/A N/A	N/A N/A	N/A N/A	N/A N/A
7.3	+ Ordinary securities	145,967,479	145,967,479	N/A	N/A
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs	Nil Nil	Nil N/A	N/A N/A	N/A N/A
7.5	+ Convertible debt securities (description)	Nil	N/A	N/A	N/A
7.6	Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	Nil Nil	N/A N/A	N/A N/A	N/A N/A
7.7	Options (description and conversion factor)	12,000,000	Nil	Exercise price 15 cents	Expiry date 15/07/04
7.8	Issued during quarter	Nil	N/A
7.9	Exercised during quarter	Nil	N/A
7.10	Expired during quarter	106,607,369 1,000,000 1,000,000 1,000,000	106,607,369 Nil Nil Nil	20 cents 10 cents 20 cents 30 cents	31/07/02 15/07/04 15/07/04 15/07/04
7.11	Debentures (totals only)	Nil	N/A
7.12	Unsecured notes (totals only)	Nil	N/A

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: 30 October 2002
(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.