Read to the end of this. There is a pile of good news, stated in Cassidy's November 14 release.

Don't hit me! I (and RSG Global) know that 24 karat 
is pure gold. Many markets prefer to work using a "fineness" scale. 
We know 24K gold or 100% pure gold has a fineness of 999. 

So what's this with the 25 karat stuff?

Its about RSG reporting the glass half empty!  A read of RSG's full report of the processes used to determine the amounts of inferred and interpreted resource they calculate for Cassidys Kourassa area project prompts me to list the following observations:

1.     The amounts of resource reported by RSG this past September uses calculations that cap (read arbitrarily diminish) high reported assay values. RSG also arbitrarily limited the anticipated horizontal continuity of zones with high gold content determined by drilling. This is the method of compensation for the probability that the high readings are "sports" caused by "nugget effect".

2.      Nugget effect assumes that the sample taken is not truly representative and that an unusual "aim" of the drill occurred. Consider this a typical drill hole has a 13 cm (5 inch) diameter. It represents an area of about 225 square centimeters. A typical "full cell" used to calculate resources could be up to 40 meters across with an area of say 126,000 centimeters. That hole represents a sampling at a ratio of as little as 1 part on 560. Makes it easy to see why the caution is applied. I can just see those nasty nuggets lurking underground waiting to leap into the sample in order to mislead the engineer. Can't you?    

3.      I don't want to see ourselves transported to a fool's paradise but would have liked to see the report include the calculation of resource with assay grade uncapped and full cell volume as dictated by hole spacing and zone thickness. Just to make me feel good, like they did last year. Knowing what might be there is just as useful as knowing what may not be there!

4.      The independent Engineer's report details the great care taken by RSG to affirm that all reported results were checked and lab processes confirmed by check assays at other labs and by the slipping in of "standards " i.e. not identified samples that can catch inadvertent or intended errors in assay reports.

5.     And readers, after RSG taking all those certainty-building precautions is why I call for 25 karat gold! This is more than pure gold! (See RSG's report for yourself: Kouroussa Gold Project, Independent Technical Report - September 2006 at www.sedar.com)

The glass half full (or maybe a little more than half)? Nice surprises from RSG.

A number of unanticipated good news aspects arise out of the RSG report. Some of these are :

1.     One of the reasons that I calculated and anticipated a higher tonnage of total pay rock (and  therefore of total ounces of gold) is that the rocks of the top 80 meters are lighter than expected. Light, in mining, also means weak. It means lower costs to crush and separate the good stuff. Good!

2.      "Resource pattern drilling" was successful in elevating a large proportion of the inferred resource to the "indicated category" . The drilling that was done changed the category of the resource under National Policy 43-101.

3.      Consistency of results prompted RSG's staff, the operations management team, to recommend that Cassidy concentrate on extensions and exploration rather than on "added proofing" of the known areas of resources.

4.       The Kourassa area continues to become additionally attractive. The most important aspect is consistency of finding gold at shallow depth and rapidly developing geologic interpretations of the controls over mineral emplacement. Applicability of geophysical interpretations appears to provide another powerful tool for the exploration process.

5.       Continued high gold selling price, very favorable metallurgy with high recovery anticipated, availability of extraordinarily competent and dedicated workers and reduction in "third world country" anxiety levels make the attractions of the Kourassa area in Guinea grow.

6.        Traditionally, anticipations have been that a reserve of more than one million ounces of recoverable gold must be indicated in order that a company can consider initiating mining. This appears to be an overly high threshold.

7.         Recently Etruscan Resources Inc. received an updated feasibility study for its 90-per-cent-owned Youga gold project located in Burkina Faso, West Africa. The updated feasibility study prepared by RSG Global of Perth, Australia, and MDM Engineering of South Africa updates the original feasibility study prepared by these consultants in January, 2005.

8.         The Younga project, has a startling similarity to Cassidy's Kourassa project at the current stage. The Youga Gold Deposit feasibility study completed January, 2005 by RSG Global (Pty) Ltd. and MDM Ferroman (Pty) Ltd. concludes that Youga will produce an average of 88,000 ounces of gold per year at a cash operating cost of US$256 per ounce over a 5.5 year mine life from three deposits included in the Youga Gold Deposit feasibility study.

9.         Additional drilling was undertakenby Etruscan on two near-by zones on the deposit. This additional drilling increased reserves from 5.5 million tonnes at 2.9 g/t to 6.6 million tonnes at 2.7 g/t. As a result, total reserves for the project increased from 515,000 ounces, as reported in the Youga Gold Deposit feasibility study, to 580,000 ounces.

10.       Etruscan calculates that at current Gold selling price a mine will recover its total capital cost of 44 million US$ in two and one half years and provide an internal rate of return of more than 50%.

11.       RSG Global says the resources interpreted at Cassidy's Kourassa project already exceed 700,000 ounces. These are in 8 areas that have had sufficient drilling to permit calculation of tonnages. All of the discovery areas are open to extension to depth and along trend.

Clearly, this discussion of the conservative aspects of the RSG report to Cassidy instills confidence. The Kourassa project is not a will-o'-the-wisp that will blow away in a West African wind. Cassidy is already entitled to be promoted to the class of "advanced stage" exploration and development company. The comparison of Cassidy's Kourassa project, even at this early stage, with the  projectin Burkina Faso, West Africa is entirely defendable. It provides some guidance as to future values.

The principal difference is that we know that Cassidy has numerous additional leads where Gold accumulations can be found. The lesson that the first, or, the already-found is not necessarily the best to be found, keeps repeating for Cassidy. The over-arching fact is that Cassidy has explored only a small fraction of the land area to which it has license. Serendipity alone, in the form of easy highway access guided it to the first discoveries. As good as these initial finds appear, reason requires that they be viewed from the perspective of having had the most exploration to date. The first ones represent rather nice examples. Results from recent drilling reinforce the causes for anticipations to be high.

Making the glass bigger and fuller. Press release on November 14, 2006. Let's do the bad news first. The undependable drill supplied by West Africa Drill Services did not improve its disposition over the layover despite ministrations by WADS chief mechanic. Hold WADS feet to the fire JT!! Times awasting!

The GOOD NEWS! Drilling in the latest phase concentrated on the promising KD-1 trend. Eighteen holes are reported including the coring of a predicted deeper occurrence of gold.

Here is some math anyone can do. RSG calculated that the KD-1 trend as outlined before Sept 2006 contained total resources of 42,000 ounces of gold along a length of 165 meters. The latest drilling has extended the zone to now be 550 meters. Hmmm. 165 goes into 550 at least 3 times. Maybe we should consider KD-1 to potentially indicate a resource total of 126,000 ounces for a total boost for the Kourassa area of 12% to nearly 780,000 ounces total. Looking good! The KD-1  results, hole by hole are at least as good as the previous ones. Yep, 550 meters and still open in three directions.  Sounds more like the Eveready Bunny to me.                     

DISCLOSURE STATEMENT 

 Ed Zederayko is a shareholder of Cassidy Gold Corp. He is not  an insider of the company.