Keegan Resources Inc.

Keegan Resources Inc.

March 11, 2005 13:35 ET

Keegan Announces Acquisiton of Asumura Gold Project, West Ghana


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: KEEGAN RESOURCES INC.

TSX VENTURE SYMBOL: KGN

MARCH 11, 2005 - 13:35 ET

Keegan Announces Acquisiton of Asumura Gold Project,
West Ghana

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 11, 2005) - Keegan
Resources Inc. (TSX VENTURE:KGN) is pleased to announce that it has
entered into an option agreement with GTE Resources ("GTE"), a privately
held Ghanaian Company, whereby Keegan may, subject to regulatory
approval, acquire 100% of the Asumura Property in western Ghana. Under
the terms of the agreement Keegan is required to complete $1Million USD
of work on the property and deliver cash payments totaling $100,000 USD
and a total of US$100,000 worth of Keegan Resources Inc. shares to GTE
over a period of three years. After meeting these commitments, the
Company will have an undivided 100% interest in the Property subject to
a 3.5% Net Smelter Return, 50% of which may be purchased for $2 million
USD. The first year's payments are $10,000 USD and $10,000 USD in Keegan
shares to be determined at the date of exchange approval. The first
years work commitment totals $80,000 USD. A finders fee with respect to
the property is payable to Hunter Dickinson Group Inc.

The Property is located 65km southwest of Newmont's Ahafo gold deposit,
where as of December 31, 2004, Newmont announced updated proven and
probable reserves (including the Yamfo and satellite deposits), totaling
over 10M ounces at an average grade of 0.068opt gold with a projected
metallurgical recovery of 88%. Newmont is continuing an extensive
exploration program within the district as it builds the Ahafo mine
toward a planned start up in the second half of 2006. Ahafo is located
on the Western Belt Boundary Shear of the Sefwi Greenstone Belt. Like
most giant greenstone gold deposits, Ahafo is associated with a flexure
of the belt bounding shear zone. The Company's Property, like Ahafo, is
also located on the Western Belt Boundary Shear of the Sefwi Greenstone
Belt. It covers the next large flexure southwest of Ahafo and is thus
prospective for similar deposits.

Over the next three months, the Company will conduct a reconnaissance
geologic mapping/ stream sediment sampling program on the Property
followed up by more detailed soil sampling and prospect mapping. The
Company will then evaluate and prioritize the geologic data and
geochemical anomalies in order to prioritize drill targets.

Dan McCoy, President and CEO of Keegan Resources Inc. states: "Although
geographically, this acquisition deviates from our primary strategy,
which is to focus on high quality gold assets within North America, it
does fit our strategy of exploring for geologic analogues to the truly
giant gold deposits, which Ahafo is quickly becoming. The Asumura
Property occupies one of the last large, unexplored greenstone belt
flexures in Ghana and we consider Ghana the friendliest and most stable
of African countries. We see excellent exploration and development
opportunities executable at relatively low costs using established,
straightforward exploration methodologies."

ON BEHALF OF THE BOARD OF DIRECTORS

Dan McCoy, PhD, President and 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 that 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 www.sedar.com.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Keegan Resources Inc.
    Dan McCoy, PhD
    President and CEO
    (604) 683-8193
    www.keeganresources.com