Keegan Resources Inc.

Keegan Resources Inc.

April 29, 2008 08:00 ET

Keegan Continues to Hit High Grade Gold Intercepts in Esaase Infill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 29, 2008) - Keegan Resources Inc. ("Keegan") (TSX VENTURE:KGN)(AMEX:KGN) is pleased to announce the results of three new infill drill holes in the high grade north resource area along the A-1 structure as well as seven holes drilled into the recently discovered D-1 zone. The best intercept was from drill hole KERC317, which encountered 73 meters of 3.23 g/t. The collar of KERC317 is 60 meters south of the collar of KERC264 where Keegan had previously intercepted 42 meters of 8.75 g/t Au (see NR dated February 11, 2008). Results from drill holes KEDD303 and KEDD302 confirm high grade mineralization down dip in this portion of the deposit, intercepting 32 meters of 4.47 g/t Au and 21 meters of 2.6 g/t Au respectively. Keegan is continuing to drill both infill and extension holes in the northern portion of the deposit, which continues to show high grade potential.

Of the drill holes testing the geometry of the newly discovered D-1 zone, the best was KERC305, which intercepted 41 meters of 1.3 g/t Au. Continued drilling in the D-1 area reveals that the best mineralization occurs at the intersection of the main structure and a sub-parallel intrusive sill. Mineralization remains open along strike in both directions. Other results from holes targeting large north step-outs of the A-1 zone are still pending. Please see for a map showing collar locations.

Table 1. Initial intercepts from the 2008 infill drill program, Esaase gold
----------------------------------- -----------------------------------
Hole_ID From To Width Grade Hole_ID From To Width Grade
----------------------------------- -----------------------------------
Infill holes from the northern
Resource Area (A-1) Stepout Holes in the D-1 zone
----------------------------------- -----------------------------------
KEDD302 130 141 11 0.75 KERC305 92 133 41 1.3
KEDD302 189 194 5 1.11 KEDD306 148 162.5 14.5 0.62
KEDD302 264 285 21 2.6 KEDD306 168.75 174 5.25 0.77
including 266 267 1 13.41 KEDD307 116 127 11 1.07
and 277 278 1 21.85 KEDD307 193 201 8 0.85
KEDD303 63 75 12 0.5 KEDD308 142 147 5 1.06
KEDD303 238 270 32 4.47 KERC309 105 116 11 0.86
including 253 254 1 17.05 KERC310 34 39 5 0.62
and 262 263 1 13.84 KERC310 46 51 5 1.51
KERC317 39 112 73 3.23 KEDD311 91 96 5 0.51
including 47 48 1 34.9
including 57 58 1 23.8
including 79 80 1 11.65
including 108 109 1 12.9
----------------------------------- -----------------------------------

President and CEO Dan McCoy states: "These continued high grade intercepts in the north resource area, occurring close to surface, show excellent potential for the starter pit as do the high grade extension of the A-1 structure to the south. As we continue to understand the geologic controls of this large and robust gold system, we believe we will have significant room to increase the value of the growing deposit, both within the existing resource as well as along strike, down dip, at depth and along parallel structures."

In response to recent speculation, Keegan is pleased to report that there have been no changes to Ghanian Mining Laws wirh respect to government royalties or ownership interests. Keegan's contacts high within the Mineral Commission of Ghana, the chief mining regulatory body in Ghana, have reported to Keegan that they are unaware of any current or future plans to revise the law. Keegan has full mining leases for both the Esaase and Jeni Concessions, which jointly make up the Esaase Project. Under the current law the government retains a 10% ownership and a 3.5% Net Smelter Royalty. Keegan has been informed that the Minerals Commission does not anticipate any changes in that regard at this time.

Richard Haslinger, P. Eng. is the Qualified Person with respect to NI 43-101 at Esaase. RC samples were taken at one meter intervals under dry drilling conditions by geologic and resource consultant RSG Global, Inc. utilizing drilling and sampling techniques widely accepted in resource definition studies of other West African gold deposits. All reverse circulation drill samples are weighed on site. All samples are using standard 50 gram fire assay with atomic absorption finish by Transworld Laboratories (GH) Ltd. in Tarkwa, Ghana or SGS Labs in Tarkwa, Ghana. QA/QC programs using internal and external standard samples, re-assays, and blanks indicate good accuracy and precision in a large majority of standards assayed. Intercepts were calculated to emphasize width rather than grade: a minimum of a 0.2 g/t cut off at beginning and end of the intercept and allowing for no more than six consecutive samples (six meters) of less than 0.2 g/t Au. All internal intercepts above 10 g/t Au are reported within the intercept. Intercepts of less than 5 meters or less than 0.5 g/t Au were not reported. Mineralization strikes approximately 30 degrees east of north and dips 45 to 60 degrees to the west. The drill holes are oriented at 110 degrees azimuth and are inclined at 45 degrees to the east, so true widths are estimated to be over 80% of the drilled widths.

About Keegan Resources: Keegan is a junior gold company offering investors the opportunity to share ownership in the rapid exploration and development of high quality, pure gold assets. The Company is focused on its wholly owned flagship Esaase and Asumura gold projects located in Ghana, West Africa. Managed by highly skilled and successful technical and financial professionals, Keegan is well financed with no debt. Keegan is also strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighboring communities. Keegan trades on the TSX-VEN and on the AMEX under the symbol KGN. More information about Keegan is available

On Behalf of the Board

Dan McCoy, Ph.D., President & CEO

This release includes certain statements that may be deemed forward-looking statements. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's filings that are available at

To view the Esaase Concession Drill Hole Results map please click on the following link:

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

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