G'day, KE7 was crowned in 1902.
This item resembles a half-sov, in diameter and design.
Of course, the legend is "wrong", in more than one way.
It's not easy to judge from the pics on
ebay, but the G&D lack the detail usually seen on gold coins, and the colour reminds me of brass.
So, I suspect, we are looking at a "gaming token" or "play money".
It would be interesting to know the weight: gold ought to weigh 3.99 grams. Brass would be significantly less.
Peter in Oz