A TOP AUSSIE GOLD PLAY : COOLGARDIE GOLD NL (COG)

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Gold/Mining/Energy
A TOP AUSSIE GOLD PLAY : COOLGARDIE GOLD NL (COG)

An SI Board Since February 1999

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Emcee: Laurence Kirk	Type: Unmoderated

Introduction Compact

COOLGARDIE GOLD NL (COG) : AUSSIE GOLD PLAY OF THE MONTH

AT 4.5 CENTS A SHARE COOLGARDIE GOLD NL HAVE BEEN TRADING AT LESS THAN THEIR CASH BACKING OF 4.9 CENTS A SHARE:

This puts their market cap at $8.9M, a significant discount to their debt free $9.5M cash at bank, and takes no account of the high grade copper and gold prospects and copper resources that they have recently acquired in Queensland, or of the extensive drilling program that they have just started there. Forthcoming drilling results could give the stock a major boost, whilst the downside risk is limited by their 4.9 cents a share cash. Value of this sort cannot go unrecognised for long, in a reawakening Aussie gold market that took Redback Mining from 5 to 37 cents, with far less cash, on first stage drilling results last month. The the stock is an exciting exploration play.

THE CURRENT DRILLING PROGRAM LOOKS GREAT:

Coolgardie are about to follow up a little noticed earlier drill intersection of 27m at 5.3g/t gold on their Marlborough Project in NE Queensland. This was a sulphide gold intersection, which included 6m at 9.1g/t gold and 10m at 8.7g/t gold, and similar high grade intersections could be expected around it. Coolgardie will then go on to follow up thicker, lower grade gold intercepts in extensively altered volcanics and a previously undrilled magnetic porphry target under surface cover a few hundred metres to the west. These large scale covered targets provide the opportunity for a major gold discovery.

After Marlborough, Coolgardie then go on to drill high grade copper and gold targets around their copper and gold resources at Mount Cannindah, and then copper and gold targets around the newly acquired 80Mt copper resource at Coalstoun, before returning for a further stage of follow up drilling at Marlborough. These programs will continue for several weeks, and a long run of exciting drilling results may be expected.

COOLGARDIE COME OUT ON TOP:

The last 18 month's slump in the gold exploration sector has left many small Australian gold explorers cash strapped and inactive. Coolgardie, by contrast have used their money and technical skills to take advantage of the fire-sale market in mineral properties, and have assembled a quality exploration portfolio which they are now ready to fund, drill and develop. They appear to have hit the ground running for the forthcoming resources recovery and are set to make the most of it. The present drilling program should demonstrate this.

FOR FULL REPORT PLEASE CONTACT:

LARRY KIRK
Authorised Representative, William Noall Ltd., Western Australia

On: PH (61) 8 9321 7755 FX (61) 8 9321 7066.

AUSTRALIAN CORPORATIONS LAW Section 851 (Know Your Client): This document has been prepared for the general information of investors and not having regard to any particular person's investment objectives, financial situation and particular needs. Accordingly, no recipients should rely on any recommendation (whether express or implied) contained in this document without obtaining specific advice from William Noall Ltd. CORPORATIONS LAW Section 849 (Disclosure of Interest): Advisors at William Noall Ltd may own Coolgardie Gold and other shares, warrants or options, and may change these holdings at any time without notice. DISCLAIMER: William Noall Ltd and its advisers make no representation, give no warranty and do not accept responsibility for the accuracy or completeness of any recommendation or information contained herein and will not be liable to the recipient or any other person in contract, in tort for negligence or otherwhise for any loss or damage arising as a result of the recipient acting on any recommendation or information herein except insofar as any statutory liability cannot be excluded.

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