if a leak then where, page-3

Let's go a step further and say there is also the JV deal with BHP on the agenda - it may not all be Mary Kathleen sparked.
(Announcement below my post)
Now there may be many serious studiers who have done the hard yards, as ex berliner pointed out on the day of the rise, who would most certainly have this on their watch list knowing results were coming up to due -in much the same way as some of us had today marked as a buy on GDN - so as soon as the price started to move, there would have been a lot of momentum carry it on.
Add the BHP community investors to that, and maybe we will find the truth half way between the two? Little bit of gossip, lot of hard work, and many waiting for a sign of movement. We will probably never know - and therefore let's just accept something good is on the way!!

ABN 73 006 645 754 oldsearch Limited Level 4
20 Loftus Street
SYDNEY
NSW 2000
Telephone: (02) 9241 5999 Fax: (02) 9241 5599
email: [email protected] G
G
gsh/psh/gsh671
1 December 2006
The Manager
Company Announcements Office
Australian Stock Exchange Limited
Level 4, 20 Bridge Street
SYDNEY NSW 2000
Via ASX Online No. of pages – 4
Dear Sir,
Re: East Musgrave project – joint venture with Independence Group and BHP Billiton
Enclosed for release to the market is advice of an in principle agreement between the
Company, Independence Group NL and BHP Billition in relation to the joint venture
arrangements for exploration of the Company’s Eastern Musgrave Block tenements.
For and on behalf of the directors of
Goldsearch Limited
P S Hewson
Secretary
A.B.N.73 006 645 754 oldsearch Limited
Level 4
20 Loftus Street
SYDNEY
NSW 2000
Telephone : (02) 9241 5999 Fax : (02) 9241 5599
email: [email protected] G
G
ASX ANNOUNCEMENT
1 December 2006
BHP Billiton, Independence Group NL, Goldsearch Limited
East Musgrave Joint Venture
Goldsearch Limited (GSE) is pleased to announce that an agreement in principle has been reached
with Joint Venture partner Independence Group NL (IGO) for BHP Billiton to earn a 65% interest in
the East Musgrave Project (the “Project”) by spending $25 million or by delivering a Bankable
Feasibility Study within 10 years.
This is a significant advancement for the Project as it will provide the necessary level of funding to
fast track exploration and maximise the potential for discovery and development of mineral deposits
in this vastly under explored province.
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.
To enable the transaction to proceed, IGO which is currently earning a 51% interest in the project
via expenditure of $2 million will vest its interest via a payment to GSE of 200,000 Fully Paid
Ordinary IGO shares.
Principal Terms
Together GSE and IGO will enter into a farm-in and Joint Venture agreement with BHP Billiton under
the following terms
• BHP Billiton to earn a 65% interest in the Project via expenditure of $25 million or delivery of
a Feasibility Study (whichever comes first) within 10 years. Upon BHP Billiton earning its
interest, equity in the project will comprise BHP Billiton 65%, GSE 17.15%, IGO 17.85%.
• BHP Billiton must spend a minimum of $680,000 (“Minimum Commitment”) within 3 years of
ground access becoming available.
• BHP Billiton must spend a minimum of $2 million within five years to retain its joint venture
rights.
• BHP Billiton shall have the option of withdrawing from the Project before completing the
Minimum Commitment if access to tenements ELA 96/260, 341, 342 and 343 is not possible
within 24 months of signing the Joint Venture agreement.
• At any time after BHP Billiton has earned a 65% interest the parties will contribute pro-rata to
the Joint Venture or IGO and GSE can elect to convert their interests to a 1% net smelter
return royalty.
• IGO will be manager of the Project, however BHP Billiton will have the option of assuming
management at anytime from 12 months after the commencement date of the agreement.
• Should BHP Billiton withdraw from the project the equities will revert to IGO 51% and GSE
49%.
G
Clawback
• GSE and IGO will have a once only right to elect to purchase BHP Billiton’s equity in the
Project by paying three times BHP Billiton’s spending in the project.
• The clawback must be exercised within 90 days of delivery of a feasibility study and can only
be exercised if total resources in the Project contain less than 80,000 tonnes of nickel metal.
Sales Agency Rights
• BHP Billiton will earn the right to market (“Sales Agency Right”) the partners share of all
products produced from any deposits produced from the Project.
• As payment for providing these services BHP Billiton will receive a fee of 2.5% of all sales
completed on behalf of the project.
• The Sales Agency Right will commence upon decision to carry out a Pre-feasibility study and
will last for five years from the commissioning of a mine following which the Sales Agency
Right will be automatically renewed for three year periods, subject to GSE/IGO’s right to
terminate with 12 month notice.
• BHP Billiton will have the option to procure the products from the Project at an established
market price, in which case the marketing fee will not apply.
The key tenements are located on Anangu Pitjantjatjara Lands and approval of this arrangement by
the Traditional Owners of this land, completion of appropriate documentation and any other required
government approvals, will be condition precedents of the agreement. The next meeting between
representatives of the Anangu Pitjantjatjara and GSE-IGO is scheduled to take place in Central
Australia on Monday 4 December 2006.
For further information please contact:
John Percival
Director Operations, Goldsearch Limited
Phone: (02) 9241 5999