new buy recommendation from bby

Should be a string of announcements shortly, wouldn't be surprised to see CRK back to 1.20 by end of Jan. Also good to see frank buy on market with another $100k

regards,

rr


____________________________________________
From: John Veldhuizen
Sent: Thursday, 18 January 2007 10:40 AM
To: All Dealers
Subject: CRK - Excellent exploration upside close to Kalgoorlie


Key Quarterly Highlights

1) Drilling identifies new mineralisation structure over a strike of 800metres, with excellent continuity.

2) 3 rigs on site.

3) Resource upgrade expected shortly.

4) New discovery identified west of the Eastern structure.

5) Cash on hand A$7M.

Encouraging drill results during the quarter include:

Parrot Feather deposit - 20 holes drilled over a 800 metre strike North / South all intersected gold mineralisation. Mineralisation continuity is excellent over the strike length drilled and remains open to the South / North and at depth. Mineralisation is characterised as a stacked lode system.

Best intersections include:

Hole PFRC279 - 7m @ 4.1g/t.

Hole PFRC284 - 8m @ 3.2g/t.

Hole PFRC285 - 4m @ 4.98g/t.

Hole PFRC293 - 4m @ 12.4g/t from 156 metres.

Hole PFRC299- 5m @ 3.95g/t from 113 metres.

Hole PFRC285 - 4m @ 4.98g/t from 57 metres.

Hole PERC301 - 4m at 50.2g/t from 138 metres.

Hole PFRC305 - 6m @ 3.79g/tAu from 143 metres.

Hole PFRC306 - 7m @ 10.79g/tAu from 140 metres.

Hole PFRC307 - 3m @ 5.58g/tAu from 163 metres.

Hole PFRC308 - 3m @ 8.58g/tAu from 134 metres.

Hole PFRC310 - 5m @ 9.14g/tAu from 109 metres.

Hole PFRC314 - 1m @ 6.73g/tAu from 119 metres.

Hole PFRC316 - 4m @ 3.36g/tAu from 114 metres.

Hole PFRC322 - 7m @ 5.13g/tAu from 214 metres. This is the most northern drill hole on the Eastern Structure and remains open.

Central structure

The Central Structure, West and parallel of the Eastern Structure has identified significant gold targets based on recent geochemical and first pass exploration drilling. Drilling 400 metres West of Parrot Feather intersected significant width and grades of gold mineralisation along a significant strike length. These results will be followed up by further drilling this year.

Exploration

The company now has 3 rigs operating (2 RC and 1 Diamond). Diamond drilling will shortly test the high grade gold structures at depth.

Further infill and step out drilling along strike on the Eastern and Central structures remains on going.

BBY view

Recent drilling results highlight the potential size of the mineralised system at Lindsay's. Improved understanding of the gold mineralisation structures and ore orientation should lead to a significant increase in the gold resource base and more importantly an increase in the proportion of measured and indicated resources. Current resource base is 2.2Moz's. The company is targeting a resource base of 5Moz's over the next 18 months.

CRK has significant potential for further share price upside, on the back of further exploration success along strike and depth on the Eastern and Central structures.

The stock is tightly held by management holding over 50% of the stock.

We maintain our BUY recommendation.




CRK has a modest market capitalisation per oz of gold resources @ A$40/oz when compared to its peers.


Regards

John Veldhuizen

Resources Analyst

John Veldhuizen

Resources Analyst

_________________________________

BBY Limited

Participant of Australian Stock Exchange Group

Level 17, 60 Margaret St

Sydney NSW 2000

Direct: +61 2 9226 0043

Fax: +61 2 9221 5380

Cell: +61 2 840 108

Email: [email protected]



Website: www.bby.com.au

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_____Disclaimer
____________________________________________________
This electronic mail may contain general securities advice or
personal securities recommendations which, while believed to
be accurate at the time of publication, are not appropriate
for all persons or accounts. Persons or entities considering
any advice or recommendations should contact a BBY
Limited adviser with any additional questions
regarding whether or not the recommendations given are
suitable to the person's investment objectives, financial
situation and particular needs. From time to time, BBY Limited, its
officers, directors, associates and the writer of this report
may hold a position in the securities covered. BBY
Limited does not accept liability (other than
statutory liability) for any errors or omissions or for loss or
damage incurred as a result of a person or entity acting in
reliance on this document or any attachments.
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