Quarterly Report - for the period ended 30 September 2003

HIGHLIGHTS

Musgrave Block project - Independence Gold joint venture

Independence Gold NL now has access to areas of interest in both the Northern Territory and South Australia that will allow it to conduct concentrated exploration under its joint venture agreement with Goldsearch.

Northern Territory - ELs 5702, 9443 and 9407 (Lasseter Highway, Docker River region)
Wide-spaced sampling on 2 kilometre by 500 metre and 4 kilometre by 500 metre grids was completed during the quarter with six areas identified for follow up work. The exploration team is currently on site in South Australia (De Rose Hill) and is expected to continue up to the Northern Territory areas during the current quarter.

South Australia EL 2910 (De Rose Hill)
Infill sampling is progressing with transient electro magnetic (TEM) surveys currently being completed over two targets. Four major anomalies have been identified in this most prospective area close to the Wanka Wanka Hill nickel occurrence of the 1970's. The purpose of the present program is to determine the prospectivity of the anomalies and to gather sufficient information to identify drill targets for a possible drilling program later in the year.

Hawks Nest project

The new alliance of Red Metal Limited/Phelps Dodge Australasia Inc (PDA), expects to commence drilling on EL 2899 (Hawks Nest) during the December quarter. The program will involve two 650 metre deep diamond drill holes testing a gravity anomaly and a combined gravity and magnetic anomaly.

Duck Creek project

A new sampling program has been approved and will include approximately 70 samples from the total area of interest. The program is expected to commence shortly with results due by mid December.

Windeyer project

A 1,000 metre 10 hole drilling program has commenced at Windeyer, an historical gold producing area located near Hargraves in central western NSW. Results are expected during November 2003.

EXPLORATION ACTIVITIES

Musgrave Block project

INDEPENDENCE GOLD NL EARNING 51% OF THE COMPANY'S EQUITY INTEREST
South Australia (nickel sulphide targets)

A program of follow-up geochemical sampling has firmed up four areas of coherent nickel +/- cobalt, copper anomalism on De Rose Hill, EL 2910 in South Australia. Three of these areas are associated with aeromagnetic features suggesting possible prospective mafic to ultramafic rocks beneath aeolian and alluvial sand cover.
Samples have been collected on a 1 kilometre by 0.5 kilometre grid. Peak nickel values are up to 150ppm in ironstone samples and 95ppm in minus 75 micron soil samples. Anomalies have been defined by a 90ppm nickel threshold in ironstone samples and are up to 5 kilometres in strike length. In many cases anomalies remain open along strike. Normalisation of results from ironstone concentrate samples highlights anomalous areas consistent with the raw assay values.

In the south of EL 2910 the anomalous zone of nickel (and copper) geochemistry occurs approximately 20 kilometres along strike from the Wanka Wanka mafic-ultramafic dyke complex held by the joint venture under ELA 343/96 (Figure 1). Limited previous drilling at Wanka Wanka in the early 1970's by Kennecott intercepted disseminated nickel, copper sulphides in one of three shallow holes drilled into the complex. The nickel, copper sulphide mineralisation consisted of up to 5% pyrrhotite-chalcopyrite-pentlandite-pyrite intercepted in troctolite over a downhole width of approximately six metres adjacent to the southern margin of the dyke (Figure 2). The Wanka Wanka dyke is a differentiated mafic to ultramafic dyke complex with mapped dimensions of approximately 15 kilometres in length by 150 metres in width. Previous work suggests the dyke consists of multiple fractionated zones representing individual magma pulses and is therefore interpreted as a potential major magma conduit or feeder zone. Recognised rock types range in composition from olivine and pyroxene gabbros, troctolite, peridotite and norite. Aeromagnetics suggest continuations to the system along strike to the north-east towards EL 2910. The Wanka Wanka dyke and its possible extensions are considered excellent targets for Jinchuan-style magmatic nickel copper deposits. The world class Jinchuan deposit hosts more than 500 million tonnes of ore grading 1.2% nickel and 0.7% copper.

Further geochemical sampling and a program of ground electromagnetic geophysics over two target areas is currently taking place on EL 2910.

Northern Territory (gold-copper and strata-bound base metal targets)

First pass, wide-spaced regional geochemical sampling has been completed over targeted areas of granted ELs 5702, 9407 and 9443. Samples collected on a 4 kilometre by 0.5 kilometre grid have identified six areas for follow-up work based on ironstone samples assaying up to 0.36ppm silver, 77ppm copper and 79ppm cobalt associated with NeoProterozoic carbonate-rich sediments under extensive sand dune cover.

Following the recent signing of a deed of exploration with the traditional owners and Central Land Council, granting and final approval of exploration programs is expected for applications ELAs 5701 and 5703 in the next few weeks. ELAs 5701 and 5703 cover several high priority exploration targets associated with interpreted high-level felsic intrusions into a rift sequence of bimodal volcanic rocks and sediments. Limited work in the region associated with previous government investigations has returned rock chip assays up to 0.1 g/t gold, 5,000 g/t silver and 11% copper.

Further geochemical sampling and geological reconnaissance of ELAs 5701 and 5703 is scheduled for the December 2003 quarter.

Gawler Craton - Hawks Nest - South Australia
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 untested magnetic and gravity anomalies and is considered prospective for iron oxide-copper-gold mineralisation and Broken Hill type silver-lead-zinc mineralisation.

Drilling is expected to commence during November/December 2003 and will involve two 650 metre diamond drill holes testing a gravity anomaly and a combined gravity and magnetic anomaly. A recent ground based transient electromagnetic (TEM) survey identified weak to moderate conductive anomalies associated with both drill targets.

Musgrave Block - Northern Territory
EAST BLOODS RANGE AND PETERMANN JOINT VENTURE
ELA 9863 (100%), and EL 9741, ELAs 6847, 9740, 22687, 22688, 22689 and 22690 (up to 75%)

During the quarter representatives from Goldsearch attended a meeting with the traditional owners to establish if there would be any objection to gaining entry to the tenements surrounding Ayers Rock and the Olgas. Subsequent to the end of the quarter the Company has been advised by the Central Land Council that ELAs 22687, 22688, 22689 and 22690 are located in very sensitive areas and therefore granting of these exploration licence applications has been refused.

The Company is continuing to review the geophysical interpretations of EL 9741 and ELAs 9740, 6847 and 9863 with a view to offering the areas for joint venture.

Moruya Gold Mines - New South Wales
EL 6027 (100%)
The Company has been in contact with a local contractor with the view to creating a quarry over part of the area. Joint venture negotiations are scheduled to commence during the December 2003 quarter with the holder of two gold mining leases located within the Company's tenement. During discussion with local community members Goldsearch has become aware of new areas of potential interest which may lead to an expansion of the Company's interest in the region.
Windeyer - New South Wales
EL 6094 (100%)

Drilling has commenced on this tenement. A 10 hole 1,000 metre program is now taking place with results due during November.

St Arnaud - Victoria
ELA 4669 (100%)

Once this application has been granted and agreements have been finalised with the local traditional owners the Company intends to almost immediately commence an exploratory drill program on identified targets.

OTHER ACTIVITIES

Joint venture opportunities

The Company has been actively evaluating joint venture opportunities on a number of prospective exploration targets. These include some large operations which would mean the Company would be involved as a partner in a much more significant endeavour than it could manage on its own.

Investments

Independence Gold NL

The Company presently holds 200,000 ordinary fully paid shares and 500,000 options in Independence Gold NL at a cost of $155,600. At 30 September 2003 the market value of these securities was $619,000.


Capix

Goldsearch retains a 14.8% minority interest in Melbourne based IT software company Capix. The company has reported increased interest in its products and believes the development of overseas markets will prove beneficial. Interested shareholders may wish to visit the Capix website at www.capix.com.au.

Statement

Technical information relating to Goldsearch Limited 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.

Information relating to Independence Gold Limited joint venture activities in this report was prepared by Mr Heath Hellewell, chief exploration geologist of Independence Gold NL and acurately reflects the information compiled by him.

Information relating to Red Metal Limited joint venture activites in this report was prepared by Mr Robert Rutherford, B.Sc., (Geol), Masters.Econ.Geol., Managing Director of Red Metal Limited and accurately reflects the information compiled by him.

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 2003

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

		Current quarter $A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	39
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 - Directors' superannuation 36,665 2,759

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: 29 October 2003
(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.