intersuisse buy recommendation

This was just forwarded to me. Apologies if this has already been posted

Cheers


Kalgoorlie-Boulder Resources Ltd KAL Wednesday, 19 December 2007

Selene gold deposit has impressive thickness and continuity

Recommendation Speculative Buy

Overview

KAL has increased its resource estimate for the Selene deposit at its Norseman gold

project by 53%. The indicated and inferred resource is now 14.3 million tonnes averaging

1.6 g/t gold and containing 720,000 ounces of gold. Including resources at Mt Henry, North

Scotia and Abbottshall the global Norseman gold project resource now totals 25.8 million

tonnes averaging 1.7 g/t gold and containing 1.4 million ounces of gold.

The Selene deposit is hosted in banded iron formation and dips gently at 20 degrees

towards the west. With down hole intersections in excess of 40 metres in length, the low

strip ratio and bulk nature of the ore body is expected to lend itself to very low cost open pit

mining methods. The resource increase is the result of the completion of 1,633 metres of

RC drilling in October 2007.

KAL is currently updating its Mt Henry resource to incorporate recent drilling, and is well

advanced towards the completion of a scoping study for the project in the first quarter of

2008. Process test work is scheduled for the early part of 2008.

The Norseman gold project covers 124 sq km of the Norseman-Wiluna greenstone belt of

the Eastern Goldfields of Western Australia. Norseman is the most southern gold mining

centre of the belt and the region has been a major gold producer with production in excess

of 6.1 million ounces of gold from 1935.

The company acquired the project in early 2007. Previous owners included Canadian gold

mining company, Kinross Gold Corporation.

The company is also advancing the Clinker Hill nickel sulphide project in the Kambalda

nickel province. The project is in a favourable geological setting on the western margin of

the Bulong ultramafic complex. The historic gold mining centre of Bulong is to the north of

the project, the Blair nickel mine is located 10 km to the west and the Carnilya Hill nickel

mine is located 20 km to the south.

Previous mapping has shown that there is a 7 km strike length of relatively under explored

basal contact zone between the west facing Bulong ultramafic complex and a fractionated

ultramafic/gabbro sill. A soil sampling program has identified a significant 700 ppm nickel

anomaly that measures 900 metres by 100 metres in a possibly favourable embayment in

the basal contact.

The program also identified a 400 ppm nickel anomaly that extends 5 km along the basal

contact. Both anomalies are coincident with copper, platinum group elements and cobalt.

The company intends to conduct ground based EM surveys to assist with the identification

of drill targets.

Impact

Both of KAL’s Selene and Mt Henry mineral resources display continuous and thick

mineralised zones which will be readily amenable to open pit mining. In particular the

Selene deposit has a gentle dip which will enhance the economics of a mining operation.

In addition the company has an impressive nickel sulphide project that with limited further

work should provide exciting drill targets. These are excellent projects that don’t come along every day.

Share Price Target: 45c