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...started hearing a graunching noise and then the coolant light started flashing...
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There are plenty of places where coolant can leak from; coolant cap, hoses, pump, heater core... BUT the only one that will graunch is the pump. There are things that will graunch, but will not leak coolant.
If nothing obvious presented by looking under the car, I'd remove the engine access panel behind the seats and see if the water pump is wonky.