SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


                                    FORM 8-K

                                 CURRENT REPORT

                       Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported) January 18, 1998


                       BEST MEDICAL TREATMENT GROUP, INC.
             (Exact name of registrant as specified in its charter)

                            GAENSEL GOLD MINES, INC.

                                  (Former Name)

                                     Nevada
                 (State or other jurisdiction of incorporation)


               0-12825                                            84-0916272
(Commission File Number)                       (IRS Employer Identification No.)


45110 Club Drive, Suite B, Indian Wells, California                   92210
(Address of principal executive offices)                            (Zip Code)


Registrant's telephone number, including area code            (619) 360-1042
                                                                --------------




<PAGE>



Item 5.    Other Events

           Gaensel Gold Mines, Inc. (the "Registrant") has changed its name to
Best Medical
Treatment Group, Inc.; Lifeline Medical Information Systems, Inc., a subsidiary
 of the Registrant,
has changed its name to Best Medical Treatment, Inc. ("Best Medical").

           Best Medical is a medical  information  company that is able to match
the needs of an individual  foreign  patient with the best doctors and hospitals
in the United States capable of treating the patient

           Over 100 million people, living outside the United States, can afford
medical  treatment in the US. The United  States is  recognized  throughout  the
world as having the most advanced medical treatment available.  In the past year
John Hopkins Hospital had an increase from 600 foreign patients to over 6,000.

           To identify the best doctors and hospitals in the United States, Best
Medical  developed a proprietary  search  protocol and rating system that covers
over  5,000  US  hospitals,  600,000  US  physicians,  4,000  medical  journals,
10,000,000  medical  references,  100 medical data bases,  and numerous  surveys
rating doctors and hospitals.

           Many financially capable foreign patients don't seek treatment in the
United States.  Management  believes that most foreigners are intimidated by the
many barriers involved in the process.  Foreign  physicians and patients are not
knowledgeable  of which US doctors and  hospitals  are  leaders in a  particular
specialty.  Language and cultural barriers, transfer of foreign language medical
records, financial arrangements, visas, passports, and travel logistics, are all
obstacles.  Best Medical manages all of the above matters,  plus many others, to
remove all barriers to medical treatment in the United States.

           To arrange  treatment by the best  doctors and best  hospitals in the
United  States,  Best Medical  first had to  determine  the identity of the best
doctors and hospitals.  This necessitated that Best Medical established criteria
to enable the company to rate doctors and hospitals, on a specialty by specialty
basis. In specialties such as AIDS, cardiology,  cancer, organ transplants, etc.
a  heavy  emphasis  was  placed  on  mortality  rates.  In  specialties  such as
pediatrics,  psychiatry,  ophthalmology, and rehabilitation,  emphasis is placed
elsewhere.  Best Medical then conducted  multidimensional research on over 5,000
US hospitals and 600,000 US  physicians,  20,000 medical  journals,  185 medical
data bases, and numerous surveys rating doctors and hospitals.

           After accessing Best Medical's internal medical  library/database the
company conducts an outside search following a proprietary search protocol.  The
protocol calls for an systematic search of multiple medical data bases,  medical
libraries and medical journals. The search also encompasses accessing government
reports publications,  and medical certification and disciplinary boards. At the
conclusion  of the search,  Best Medical is able to match the best  qualified US
physicians and hospitals to the precise medical needs of a particular patient

           Once advised of a patients  diagnosis and medical needs, Best Medical
commences a search to determine the three best  doctor-hospital  combinations in
the US most capable of treating that  particular  patient.  The search  research
results  immediately  communicated  to the  patient's  physician  by  telephone,
followed by a full written report sent by overnight mail. The report will


<PAGE>



explain  why  each   doctor-hospital  team  was  selected  along  with  detailed
information on their history and capabilities.

           Once a patient  makes a selection,  Best Medical will make all of the
arrangements  for the patient to come under the care of the  selected  physician
and hospital.  This service includes transfer of medical records,  arranging for
the selected doctor and hospital team to treat the patient,  cost estimates from
physicians  and hospitals,  travel  arrangements,  visas and  passports,  travel
arrangements, housing, and payment arrangements.

           Best  Medical  receives  a discount  from  hospitals  and  physicians
similar  to an  insurance  company  or  Health  Maintenance  Organization.  This
discount ranges from 10% to 30% depending of the particular doctor and hospital.
Best Medical  passes the entire  discount on to the patient.  This discount will
more than reimburse the patient for Best Medical's  fees.  For  researching  and
identifying  the three best  hospitals  and  doctors in the United  States  Best
Medical charges a fee of $3,500. For making all of the medical  arrangements for
a patient to come under the care of the selected  physician and  hospital,  Best
Medical charges a fee equal to 10% of the costs of the medical costs.

           Best Medical is a true information age company.  Without the Internet
and the World Wide Web, Best Medical could not exist.  Best Medical's core asset
is its medical  library/database and search protocol. Best Medical's information
is partly contained in medical  textbooks,  partly in cyberspace,  and partly on
the Company's inhouse computers.  Best Medical's  medical/database is so new and
unique that there are no copyright laws to protect Best Medical's  database from
being cloned or pirated.  To protect its  library/database,  Best Medical stores
parts of its  database on different  computers,  at  different  locations.  Best
Medical's core computer,  which contains search protocols and indexes,  is under
the joint  control of the CEO and  Executive  Vice  President of the company and
never "on line".

           Most of the  information  needed to  determine  the best  doctors and
hospitals is already in Best Medical's database.  Prior to producing report Best
Medical  conducts  an on line  search  to  determine  whether  any  new  data is
available anywhere in the United States that could influence our recommendation.
The total research cost is  approximately  $500,  while the average cost to make
arrangements with the selected physician and hospital is about $500. The average
fee is expected to be $10,000, leaving $9,000 after costs.

           Best  Medical will market its service to through  foreign  physicians
and  hospitals.  The company  will attend  medical  conventions  and seminars in
foreign  countries.  Best Medical  believes doctors will use our service once we
have an opportunity to demonstrate or research ability.

           Best Medical will introduce its service in South  America,  in spring
1998. The  introduction is expected to take six months,  after which the company
will add  staff  in the US and  commence  commercial  operations.  Best  Medical
anticipates  expansion  into  Central  America and Mexico in the last quarter of
1999.  In 1999 the company  expects to introduce its services in both the Middle
East and China.

           The  principal  market that might be  difficult  for Best  Medical is
Western Europe, where the quality of medical treatment is high and many patients
may not feel the need to be treated


<PAGE>



in the United States.

Safe Harbor under the Private Securities Litigation Reform Act of 1995

    The Private Securities  Litigation Reform Act of 1995 (the "Act") provides a
"safe harbor" for  forward-looking  statements to encourage companies to provide
prospective  information about their companies,  so long as those statements are
identified as  forward-looking  and are  accompanied  by  meaningful  cautionary
statements  identifying  important  factors that could cause  actual  results to
differ materially from those discussed in the statement.  The Company desires to
take advantage of the "safe harbor" provisions of the Act. Certain  information,
particularly  information regarding future economic performance and finances and
plans and  objectives of  management,  contained in this Current  Report on Form
8-K.

Financial Information

           The  following  financial  information  is  presented  regarding  the
Registrant.  See the Registrant's  Form 10-Q for the Quarterly Period Ended July
31, 1997.

<PAGE>
<TABLE>
<CAPTION>
 
                     GAENSEL GOLD MINES, INC. & SUBSIDIARY
                      (A Company in the Development Stage)
                                  BALANCE SHEET

                                                                   July 31,                   April 30,
ASSETS                                                               1997                       1997
CURRENT ASSETS
<S>                                                           <C>                       <C>               
Cash and Equivalents                                          $           10,048        $           18,876
Stock Subscription Receivable                                                800                       800
Prepaid Rent                                                               1,997                     1,997
Deposits                                                                  30,000                         -
         Total Current Assets                                 $           42,845        $           21,673

OTHER ASSETS
Property & Equipment - Net                                               136,564                   155,957
Intangibles                                                                    1                         1
Organization  Costs - Net                                                    466                         -

     Total Other Assets                                                  137,031                   155,598

TOTAL  ASSETS                                                 $          179,876        $          177,631

LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts Payable                                              $            7,635        $            7,635
Accrued Expenses                                                           4,732                     3,000
Advamces Related Parties                                                  12,861                         -
         TOTAL LIABILITIES                                    $           25,228        $           10,635





STOCKHOLDERS' EQUITY
 Common  Stock                                                             1,018                     1,018
Additional paid in capital                                               560,862                   560,862
(Deficit) accumulated during
   development stage                                                   (407,232)                 (394,884)

TOTAL STOCKHOLDERS'
  TOTAL EQUITY                                                           154,648                   166,996

TOTAL LIABILITIES AND
   STOCKHOLDERS' EQUITY                                       $          179,876        $          177,631
</TABLE>

                 See accompanying Notes to Financial Statements
                                      - 2 -
<TABLE>
<CAPTION>

                     GAENSEL GOLD MINES, INC. & SUBSIDINARY
                      (A Company in the Development Stage)
                             STATEMENT OF 0PERATIONS


                                                   For Three Months Ended              For Nine Months Ended
                                                          July 31,                            July 31
                                                    1997             1996             1997             1996

<S>                                          <C>             <C>               <C>                      <C>          
REVENUES                                     $               -                - $              -                  -
COSTS AND EXPENSES
   Selling, General and
     Administrative                                     20,745                -           32,662            100,000

 INCOME (LOSS) FROM
   OPERATIONS                                $        (20,745) -              $ (32,662)                      (100,000)

NON OPERATING
  INCOME                                                     -                -                -                  -

INTEREST INCOME
 (EXPENSE)                                                   -                -                -                  -

NON OPERATING
 (EXPENSE)                                                   -                -                -                  -
NET INCOME (LOSS)
ACCUMULATED DURING
DEVELOPMENT STAGE                            $        (20,745) -              $ (32,662)                    (100,000)
Income (Loss) Per Share                      $          (0.02)                - $         (0.03)  $          (0.05)

Weighted  Average Number
     of Shares                                       1,018,379        1,018,379        1,018,379          2,072,925
  Shares Outstanding                                 1,018,379        2,079,925        1,018,379          2,072,925

</TABLE>






                 See accompanying Notes to Financial Statements
                                      - 3 -
<TABLE>
<CAPTION>

                      GAENSEL GOLD MINES, INC. & SUBSIDIARY
                      (A Company in the Development Stage)
                             STATEMENT OF CASH FLOWS


                                                    For Nine Months Ended             For Three Months Ended
                                                          July 31,                            July 31
                                                    1997             1997             1997             1997
<S>                                          <C>                   <C>                  <C>             <C>     
Net Income(Loss)                             $       (100,000)     (304,530)            (100,000)       (20,745)
Adjustments -
  shares issued for services                           100,000                -          100,000                  -

Increase in Other Assets                                     -            (466) -                 (466)

Depreciation                                                 -           19,393                -             19,393
Increase in Accrued Expenses                                 -            4,732                -              1,732
Increase in Prepaid Rent                                     -          (1,997) -                 -
Increase in Stock Subscription
   Receivable                                                -            (800) -                 -
Increase in Advances from
   Related Parties                                           -           12,861                -             12,861
Increase in Deposits                                         -         (30,000) -                 (30,000)
CASH (USED) BY
   OPERATING ACTIVITIES                                      -        (300,807) -                 (17,225)

CASH (USED) IN INVESTING
   ACTIVITIES; ACQUISITION
    PROPERTY & EQUIPMENT                                     -        (155,957) -                 -
        SUB TOTAL                                            -        (456,764) -                 (17,225)

CASH FLOW FROM FINANCING
   ACTIVITIES; ISSUANCE OF
   COMMON STOCK                                              -         466,236*                -             8,397*

INCREASE(DECREASE)
    IN CASH                                                  -            9,472                -            (8,828)

BEGINNING CASH BALANCE                                       -              576                -             18,876
ENDING CASH BALANCE                          $               -           10,048                -             10,048
*Corrections to prior Quarter 4/30/97
</TABLE>


                  See accompanying Note to Financial Statements


<PAGE>



                                                       - 4 -


                      GAENSEL GOLD MINES, INC. & SUBSIDIARY
                      (A Company in the Development Stage)

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)
                                  JULY 31, 1997


1.     General

        The accompanying financial statements are unaudited,  but in the opinion
of the management of the Company,  contain all  adjustments,  consisting of only
normal recurring accruals, necessary to present fairly the financial position at
July 31, 1997, the results of operation for the three and nine months ended July
31, 1997 and 1996,  and the cash flows for the three and nine months  ended July
31,  1997 and  1996.  Certain  information  and  footnote  disclosures  normally
included in financial  statements  that have been  prepared in  accordance  with
generally accepted accounting principles have been condensed or omitted pursuant
to the rules and regulations of the Securities and Exchange Commission, although
management  of the  Company  believes  that the  disclosure  in these  financial
statements  are  adequate  to  make  the  information   presented   therein  not
misleading.  For further  information,  refer to the  financial  statements  and
footnotes  thereto  for the fiscal year ended  October 31, 1996  included in the
Company's  Form 10-K and the prior  Quarterly  10Qs filed for the periods ending
January 31, and April 30, 1997.

        The results of  operations  for the three and nine months ended July 31,
1997, are not necessarily indicative of the results of operations to be expected
for the full fiscal year ending October 31, 1997.

2.     Shareholder's Equity

        The Company  effected a 1-for-10  reverse stock split in February,  1997
and issued 800,000  additional  shares to aqcuire Lifeline  Medical  Information
Systems,  Inc.  ("Lifeline").  For further  information,  refer to the financial
statements  and footnotes  thereto for the prior  quarter  ending April 30, 1997
included in the Company's form 10Q.

                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.

Dated:            January 16, 1998                     GAENSEL GOLD MINES, INC.



<PAGE>



                                               By:      /s/ Robert Filiatreaux
                                                    Name:    Robert Filiatreax
                                                           Title:    President
[{"type": "8-K", "sequence": "1", "description": "NAME CHANGE", "secsgml_size_bytes": 19800}]
{"company-data": {"conformed-name": "GAENSEL GOLD MINES INC", "cik": "0000357049", "assigned-sic": "9995", "irs-number": "840916272", "state-of-incorporation": "NV", "fiscal-year-end": "1031"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-12825", "film-number": "98510451"}, "business-address": {"street1": "74900 HIGHWAY 111", "street2": "SUITE 121", "city": "INDIAN HILLS", "state": "CA", "zip": "92210", "phone": "6198363350"}, "mail-address": {"street1": "74900 HIGHWAY 111", "street2": "SUITE 121", "city": "INDIAN HILLS", "state": "CA", "zip": "92210"}}
SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                       Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) January 18, 1998

                       BEST MEDICAL TREATMENT GROUP, INC.
             (Exact name of registrant as specified in its charter)

                            GAENSEL GOLD MINES, INC.

                                  (Former Name)

                                     Nevada
                 (State or other jurisdiction of incorporation)

               0-12825                                            84-0916272
(Commission File Number)                       (IRS Employer Identification No.)

45110 Club Drive, Suite B, Indian Wells, California                   92210
(Address of principal executive offices)                            (Zip Code)

Registrant's telephone number, including area code            (619) 360-1042
                                                                --------------
Item 5.    Other Events

           Gaensel Gold Mines, Inc. (the "Registrant") has changed its name to
Best Medical
Treatment Group, Inc.; Lifeline Medical Information Systems, Inc., a subsidiary
 of the Registrant,
has changed its name to Best Medical Treatment, Inc. ("Best Medical").

           Best Medical is a medical  information  company that is able to match
the needs of an individual  foreign  patient with the best doctors and hospitals
in the United States capable of treating the patient

           Over 100 million people, living outside the United States, can afford
medical  treatment in the US. The United  States is  recognized  throughout  the
world as having the most advanced medical treatment available.  In the past year
John Hopkins Hospital had an increase from 600 foreign patients to over 6,000.

           To identify the best doctors and hospitals in the United States, Best
Medical  developed a proprietary  search  protocol and rating system that covers
over  5,000  US  hospitals,  600,000  US  physicians,  4,000  medical  journals,
10,000,000  medical  references,  100 medical data bases,  and numerous  surveys
rating doctors and hospitals.

           Many financially capable foreign patients don't seek treatment in the
United States.  Management  believes that most foreigners are intimidated by the
many barriers involved in the process.  Foreign  physicians and patients are not
knowledgeable  of which US doctors and  hospitals  are  leaders in a  particular
specialty.  Language and cultural barriers, transfer of foreign language medical
records, financial arrangements, visas, passports, and travel logistics, are all
obstacles.  Best Medical manages all of the above matters,  plus many others, to
remove all barriers to medical treatment in the United States.

           To arrange  treatment by the best  doctors and best  hospitals in the
United  States,  Best Medical  first had to  determine  the identity of the best
doctors and hospitals.  This necessitated that Best Medical established criteria
to enable the company to rate doctors and hospitals, on a specialty by specialty
basis. In specialties such as AIDS, cardiology,  cancer, organ transplants, etc.
a  heavy  emphasis  was  placed  on  mortality  rates.  In  specialties  such as
pediatrics,  psychiatry,  ophthalmology, and rehabilitation,  emphasis is placed
elsewhere.  Best Medical then conducted  multidimensional research on over 5,000
US hospitals and 600,000 US  physicians,  20,000 medical  journals,  185 medical
data bases, and numerous surveys rating doctors and hospitals.

           After accessing Best Medical's internal medical  library/database the
company conducts an outside search following a proprietary search protocol.  The
protocol calls for an systematic search of multiple medical data bases,  medical
libraries and medical journals. The search also encompasses accessing government
reports publications,  and medical certification and disciplinary boards. At the
conclusion  of the search,  Best Medical is able to match the best  qualified US
physicians and hospitals to the precise medical needs of a particular patient

           Once advised of a patients  diagnosis and medical needs, Best Medical
commences a search to determine the three best  doctor-hospital  combinations in
the US most capable of treating that  particular  patient.  The search  research
results  immediately  communicated  to the  patient's  physician  by  telephone,
followed by a full written report sent by overnight mail. The report will
explain  why  each   doctor-hospital  team  was  selected  along  with  detailed
information on their history and capabilities.

           Once a patient  makes a selection,  Best Medical will make all of the
arrangements  for the patient to come under the care of the  selected  physician
and hospital.  This service includes transfer of medical records,  arranging for
the selected doctor and hospital team to treat the patient,  cost estimates from
physicians  and hospitals,  travel  arrangements,  visas and  passports,  travel
arrangements, housing, and payment arrangements.

           Best  Medical  receives  a discount  from  hospitals  and  physicians
similar  to an  insurance  company  or  Health  Maintenance  Organization.  This
discount ranges from 10% to 30% depending of the particular doctor and hospital.
Best Medical  passes the entire  discount on to the patient.  This discount will
more than reimburse the patient for Best Medical's  fees.  For  researching  and
identifying  the three best  hospitals  and  doctors in the United  States  Best
Medical charges a fee of $3,500. For making all of the medical  arrangements for
a patient to come under the care of the selected  physician and  hospital,  Best
Medical charges a fee equal to 10% of the costs of the medical costs.

           Best Medical is a true information age company.  Without the Internet
and the World Wide Web, Best Medical could not exist.  Best Medical's core asset
is its medical  library/database and search protocol. Best Medical's information
is partly contained in medical  textbooks,  partly in cyberspace,  and partly on
the Company's inhouse computers.  Best Medical's  medical/database is so new and
unique that there are no copyright laws to protect Best Medical's  database from
being cloned or pirated.  To protect its  library/database,  Best Medical stores
parts of its  database on different  computers,  at  different  locations.  Best
Medical's core computer,  which contains search protocols and indexes,  is under
the joint  control of the CEO and  Executive  Vice  President of the company and
never "on line".

           Most of the  information  needed to  determine  the best  doctors and
hospitals is already in Best Medical's database.  Prior to producing report Best
Medical  conducts  an on line  search  to  determine  whether  any  new  data is
available anywhere in the United States that could influence our recommendation.
The total research cost is  approximately  $500,  while the average cost to make
arrangements with the selected physician and hospital is about $500. The average
fee is expected to be $10,000, leaving $9,000 after costs.

           Best  Medical will market its service to through  foreign  physicians
and  hospitals.  The company  will attend  medical  conventions  and seminars in
foreign  countries.  Best Medical  believes doctors will use our service once we
have an opportunity to demonstrate or research ability.

           Best Medical will introduce its service in South  America,  in spring
1998. The  introduction is expected to take six months,  after which the company
will add  staff  in the US and  commence  commercial  operations.  Best  Medical
anticipates  expansion  into  Central  America and Mexico in the last quarter of
1999.  In 1999 the company  expects to introduce its services in both the Middle
East and China.

           The  principal  market that might be  difficult  for Best  Medical is
Western Europe, where the quality of medical treatment is high and many patients
may not feel the need to be treated
in the United States.

Safe Harbor under the Private Securities Litigation Reform Act of 1995

    The Private Securities  Litigation Reform Act of 1995 (the "Act") provides a
"safe harbor" for  forward-looking  statements to encourage companies to provide
prospective  information about their companies,  so long as those statements are
identified as  forward-looking  and are  accompanied  by  meaningful  cautionary
statements  identifying  important  factors that could cause  actual  results to
differ materially from those discussed in the statement.  The Company desires to
take advantage of the "safe harbor" provisions of the Act. Certain  information,
particularly  information regarding future economic performance and finances and
plans and  objectives of  management,  contained in this Current  Report on Form
8-K.

Financial Information

           The  following  financial  information  is  presented  regarding  the
Registrant.  See the Registrant's  Form 10-Q for the Quarterly Period Ended July
31, 1997.
GAENSEL GOLD MINES, INC. & SUBSIDIARY
                      (A Company in the Development Stage)
                                  BALANCE SHEET

                                                                   July 31,                   April 30,
ASSETS                                                               1997                       1997
CURRENT ASSETS
Cash and Equivalents                                          $           10,048        $           18,876
Stock Subscription Receivable                                                800                       800
Prepaid Rent                                                               1,997                     1,997
Deposits                                                                  30,000                         -
         Total Current Assets                                 $           42,845        $           21,673

OTHER ASSETS
Property & Equipment - Net                                               136,564                   155,957
Intangibles                                                                    1                         1
Organization  Costs - Net                                                    466                         -

     Total Other Assets                                                  137,031                   155,598

TOTAL  ASSETS                                                 $          179,876        $          177,631

LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts Payable                                              $            7,635        $            7,635
Accrued Expenses                                                           4,732                     3,000
Advamces Related Parties                                                  12,861                         -
         TOTAL LIABILITIES                                    $           25,228        $           10,635

STOCKHOLDERS' EQUITY
 Common  Stock                                                             1,018                     1,018
Additional paid in capital                                               560,862                   560,862
(Deficit) accumulated during
   development stage                                                   (407,232)                 (394,884)

TOTAL STOCKHOLDERS'
  TOTAL EQUITY                                                           154,648                   166,996

TOTAL LIABILITIES AND
   STOCKHOLDERS' EQUITY                                       $          179,876        $          177,631
See accompanying Notes to Financial Statements
                                      - 2 -
GAENSEL GOLD MINES, INC. & SUBSIDINARY
                      (A Company in the Development Stage)
                             STATEMENT OF 0PERATIONS

                                                   For Three Months Ended              For Nine Months Ended
                                                          July 31,                            July 31
                                                    1997             1996             1997             1996
REVENUES                                     $               -                - $              -                  -
COSTS AND EXPENSES
   Selling, General and
     Administrative                                     20,745                -           32,662            100,000

 INCOME (LOSS) FROM
   OPERATIONS                                $        (20,745) -              $ (32,662)                      (100,000)

NON OPERATING
  INCOME                                                     -                -                -                  -

INTEREST INCOME
 (EXPENSE)                                                   -                -                -                  -

NON OPERATING
 (EXPENSE)                                                   -                -                -                  -
NET INCOME (LOSS)
ACCUMULATED DURING
DEVELOPMENT STAGE                            $        (20,745) -              $ (32,662)                    (100,000)
Income (Loss) Per Share                      $          (0.02)                - $         (0.03)  $          (0.05)

Weighted  Average Number
     of Shares                                       1,018,379        1,018,379        1,018,379          2,072,925
  Shares Outstanding                                 1,018,379        2,079,925        1,018,379          2,072,925
See accompanying Notes to Financial Statements
                                      - 3 -
GAENSEL GOLD MINES, INC. & SUBSIDIARY
                      (A Company in the Development Stage)
                             STATEMENT OF CASH FLOWS

                                                    For Nine Months Ended             For Three Months Ended
                                                          July 31,                            July 31
                                                    1997             1997             1997             1997
Net Income(Loss)                             $       (100,000)     (304,530)            (100,000)       (20,745)
Adjustments -
  shares issued for services                           100,000                -          100,000                  -

Increase in Other Assets                                     -            (466) -                 (466)

Depreciation                                                 -           19,393                -             19,393
Increase in Accrued Expenses                                 -            4,732                -              1,732
Increase in Prepaid Rent                                     -          (1,997) -                 -
Increase in Stock Subscription
   Receivable                                                -            (800) -                 -
Increase in Advances from
   Related Parties                                           -           12,861                -             12,861
Increase in Deposits                                         -         (30,000) -                 (30,000)
CASH (USED) BY
   OPERATING ACTIVITIES                                      -        (300,807) -                 (17,225)

CASH (USED) IN INVESTING
   ACTIVITIES; ACQUISITION
    PROPERTY & EQUIPMENT                                     -        (155,957) -                 -
        SUB TOTAL                                            -        (456,764) -                 (17,225)

CASH FLOW FROM FINANCING
   ACTIVITIES; ISSUANCE OF
   COMMON STOCK                                              -         466,236*                -             8,397*

INCREASE(DECREASE)
    IN CASH                                                  -            9,472                -            (8,828)

BEGINNING CASH BALANCE                                       -              576                -             18,876
ENDING CASH BALANCE                          $               -           10,048                -             10,048
*Corrections to prior Quarter 4/30/97
See accompanying Note to Financial Statements
- 4 -

                      GAENSEL GOLD MINES, INC. & SUBSIDIARY
                      (A Company in the Development Stage)

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)
                                  JULY 31, 1997

1.     General

        The accompanying financial statements are unaudited,  but in the opinion
of the management of the Company,  contain all  adjustments,  consisting of only
normal recurring accruals, necessary to present fairly the financial position at
July 31, 1997, the results of operation for the three and nine months ended July
31, 1997 and 1996,  and the cash flows for the three and nine months  ended July
31,  1997 and  1996.  Certain  information  and  footnote  disclosures  normally
included in financial  statements  that have been  prepared in  accordance  with
generally accepted accounting principles have been condensed or omitted pursuant
to the rules and regulations of the Securities and Exchange Commission, although
management  of the  Company  believes  that the  disclosure  in these  financial
statements  are  adequate  to  make  the  information   presented   therein  not
misleading.  For further  information,  refer to the  financial  statements  and
footnotes  thereto  for the fiscal year ended  October 31, 1996  included in the
Company's  Form 10-K and the prior  Quarterly  10Qs filed for the periods ending
January 31, and April 30, 1997.

        The results of  operations  for the three and nine months ended July 31,
1997, are not necessarily indicative of the results of operations to be expected
for the full fiscal year ending October 31, 1997.

2.     Shareholder's Equity

        The Company  effected a 1-for-10  reverse stock split in February,  1997
and issued 800,000  additional  shares to aqcuire Lifeline  Medical  Information
Systems,  Inc.  ("Lifeline").  For further  information,  refer to the financial
statements  and footnotes  thereto for the prior  quarter  ending April 30, 1997
included in the Company's form 10Q.

                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.

Dated:            January 16, 1998                     GAENSEL GOLD MINES, INC.
By:      /s/ Robert Filiatreaux
                                                    Name:    Robert Filiatreax
                                                           Title:    President