East Musgrave Block, South Australia
(GOLDSEARCH DILUTING TO 17.15%)
The East Musgrave Block tenements cover parts of the highly prospective Giles Complex Proterozoic rocks and its interpreted extension into the eastern Musgrave Block in South Australia. Significantly limited drilling by Kennecott in the early 1970's at Tuckerbox Hill (held under ELA 343/96) intercepted disseminated nickel-copper sulphides in one of three shallow holes completed. The nickel-copper sulphide mineralisation consisted of up to 5% pyrrhotite-chalcopyrite-pentlandite-pyrite over a downhole width of approximately six metres adjacent to the southern margin of a major dyke. The Tuckerbox dyke is a differentiated mafic to ultramafic dyke complex with mapped dimensions of approximately 15 kilometres in length by 150 metres in width. The Tuckerbox dyke and other associated Giles Complex intrusives are considered excellent targets for magmatic nickel-copper deposits.
The East Musgrave Project is a joint venture between Goldsearch and Independence Group NL. During 2007 Independence Group NL completed its earn in obligations by issuing Goldsearch 200,000 fully paid ordinary shares to earn a 51% interest in the project.
Subsequently the joint venture announced that it reached and agreements with BHP Billiton for BHP Billiton to potentialy earn a 65% interest in the project by spending $25million or by delivering a Bankable Feasibility Study within 10 years.
Upon BHP Billiton successfully earning its interest, equity in the project will comprise BHP Billiton 65%, Goldsearch 17.15%, and Independence Group 17.85%. Goldsearch and Independence Group have certain rights to claw back 100% ownership of deposits with less than 80,000 tonnes of contained nickel.
BHP Billiton is to be considered to be an ideal partner to introduce to the Project as it has a proven track record of discovery in the Musgrave province and has the necessary technical and financial resources available.
The project covers approximately 1500 square kilometers. All applications currently lie within the Anangu Pintjantjatjara Yankunytjatjara freehold aboriginal lands, During the year Goldsearch signed an exploration access agreement with the Anangu Pintjantjatjara Yankunytjatjara consenting to the grant of the two highest priority applications within the project area. Subsequently these tenements were formally granted by the South Australian state government. Following final clearances and approvals exploration programs commenced over prioritised areas within the two granted tenements in April 2008. Initial programs consist of regional geochemical and gravity surveys with more detailed ground EM (Electromagnetic) surveys over specific targets.
Goldsearch Limited Musgrave Block tenements and regional gravity image