Keegan Resources Inc.

Keegan Resources Inc.

March 04, 2005 15:49 ET

Keegan Announces Acquisiton of Regent High Grade Gold-Silver Project, Walker Lane, Nevada


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: KEEGAN RESOURCES INC.

TSX VENTURE SYMBOL: KGN

MARCH 4, 2005 - 15:49 ET

Keegan Announces Acquisiton of Regent High Grade
Gold-Silver Project, Walker Lane, Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 4, 2005) - Keegan
Resources Inc. (TSX VENTURE:KGN) is pleased to announce that it has
entered into an agreement with Jerry Baughman and Fabiola Baughman of
Reno, Nevada (the "Optionors") whereby Keegan may acquire 100% of the
Regent Gold Silver Project in Mineral County Nevada. Under the terms of
the agreement the Company will complete $3Million USD of work on the
property and deliver cash payments totaling $270,000 USD and a total of
500,000 shares of Keegan Resources to the Optionors over a period of six
years. After meeting these commitments, the Company will have an
undivided 100% interest in the property subject to a 2.5% Net Smelter
Return, 60% of which may be purchased for $3 million USD. The first
year's option payments consist of payments of $80,000 USD and 150,000
shares with a first year work commitment of $250,000 USD. A finders fee
with respect to the property is payable to Hunter Dickinson Group Inc.
The company has also staked extensive perimeter claims. In total, the
Project consists of approximately 750 hectares accessible by highway and
maintained gravel road.

The Regent Mining District is located on the eastern margin of the
prolific northwest trending Walker Lane Metallogenic Belt, which
contains giant epithermal gold deposits such as Round Mountain, (7 M
ounces of Au production to date), and the historical Comstock Lode (8 M
ounces of gold/192 M ounces of silver produced). Regent occurs
approximately 1.5 miles to the northwest of the low cost Rawhide Mine,
where Kennecott produced 1.4 M ounces of gold and over 10 M ounces of
silver between 1990 and 2004. Like Rawhide and the larger Comstock and
Round Mountain deposits, Regent occurs in a large magnetic low caused by
extensive hydrothermal magnetite destruction in hosting Tertiary felsic
volcanic rocks. At Regent, only a small portion of the hydrothermal
system has been adequately explored.

The Project has previously undergone exploration programs focused on
lower grade open pit bulk mineable resources by Newmont Gold, Inc. and
Kennecott Mining Company. These programs resulted in the drilling of
over 560 holes, the vast majority shallow, vertical reverse circulation
holes drilled within a limited area. Kennecott used these holes to
define a large area of contiguous low grade gold/silver mineralization.

Keegan plans to take a modern approach to the Project by drilling angled
and partially oriented core holes to delineate veins with sufficient
strike, width and thickness to be mined underground. The Company will
initially target structures identified by historical high grade
intercepts (greater than 5 ft, greater than 5 g/t Au -see table 1),
followed by systematic step out drilling along strike, depth and into
other underexplored prospective areas within the "hydrothermal boundary"
suggested by the magnetic low. To accomplish this goal, the Company has
designed an exploration program with 5 top priority drill target areas
(see map at company website). Two are within Kennecott's mineralized
area and the other three are spread out over a 2 km area within the
magnetic anomaly. In addition, the Company intends to conduct some
pediment soil orientation studies to efficiently explore prospective
pediment on the property.

President and CEO Dan McCoy states: "We are extremely fortunate to have
been able to acquire the Regent property. It appears to be geologically
analogous to Newmont's Ken Snyder Mine and the Ivanhoe deposit where
Great Basin Gold Ltd. and Hecla Mining are currently in advanced stage
development of high grade veins within and beneath an existing low grade
bulk mineable resource. The historical Regent Hill resource drilling by
Newmont and Kennecott gives us an assay data base from which to execute
precision exploration core drilling with a focus on high grade veins. We
will also investigate the huge footprint of magnetite destruction on the
property, which provides us with some compelling earlier stage targets
that could lead to additional large scale discoveries. We expect to be
drilling on the property upon receipt of necessary permits. The
acquisition of Regent is another step in the right direction for Keegan
as it executes its overall corporate development strategy, which is to
focus on high quality gold assets that provide maximum leverage to
rising gold prices and a declining US dollar." Richard Haslinger is the
Company's acting Qualified Person and has verified this release.

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.

Table 1: Regent Project Intercepts with at least 5 feet of at least 5
g/t Au(1)



------------------------------------------------------------
Hole(2) From (ft) To (ft) Width (ft) Au_g/t Ag_g/t
------------------------------------------------------------
NRE-054 260 285 25 5.7 33.7
------------------------------------------------------------
RK-2557 540 560 20 9.1 168.3
------------------------------------------------------------
RK-1918 395 410 15 10.7 14.4
------------------------------------------------------------
RK-2712 550 565 15 8.4 19.5
------------------------------------------------------------
NRE-080 305 315 10 12.0 115.7
------------------------------------------------------------
RK-2411 165 175 10 12.2 35.8
------------------------------------------------------------
RK-2549 485 490 5 49.9 490.9
------------------------------------------------------------
RK-2421 390 395 5 29.8 15.4
------------------------------------------------------------
RK-1937 20 25 5 29.6 36.5
------------------------------------------------------------
RK-2207 65 70 5 28.1 188.5
------------------------------------------------------------
NRE-054 200 205 5 23.8 28.2
------------------------------------------------------------
RK-2220 380 385 5 22.1 19.8
------------------------------------------------------------
RK-2551 15 20 5 18.4 121.6
------------------------------------------------------------
RK-2167 335 340 5 14.1 16.6
------------------------------------------------------------
RK-1952 170 175 5 12.0 3.8
------------------------------------------------------------
RK-2196 150 155 5 11.2 34.0
------------------------------------------------------------
RK-1914 15 20 5 10.4 9.3
------------------------------------------------------------
RK-2434 280 285 5 10.0 6.1
------------------------------------------------------------
RK-2431 265 270 5 9.8 15.7
------------------------------------------------------------
RK-2155 405 410 5 9.6 6.4
------------------------------------------------------------
RK-2525 205 210 5 9.5 5.1
------------------------------------------------------------
NRE-063 310 315 5 9.4 17.6
------------------------------------------------------------
RK-2355 10 15 5 8.9 5.1
------------------------------------------------------------
NRE-063 225 230 5 7.9 57.6
------------------------------------------------------------
RK-1914 570 575 5 7.8 489.0
------------------------------------------------------------
RK-1906 475 480 5 7.0 4.5
------------------------------------------------------------
NRE-058 40 45 5 7.0 20.2
------------------------------------------------------------
RK-2794 545 550 5 7.0 196.5
------------------------------------------------------------
NRE-040 75 80 5 6.8 2.6
------------------------------------------------------------
RK-2435 95 100 5 6.7 8.0
------------------------------------------------------------
RK-1970 205 210 5 6.6 2.0
------------------------------------------------------------
RK-2445 465 470 5 6.2 5.1
------------------------------------------------------------
RK-2477 45 50 5 6.2 5.4
------------------------------------------------------------
RE-002 25 30 5 5.9 24.3
------------------------------------------------------------
RK-2201 10 15 5 5.5 2.2
------------------------------------------------------------
RK-2194 110 115 5 5.3 6.4
------------------------------------------------------------
RK-2550 25 30 5 5.2 86.4
------------------------------------------------------------
RK-2045 20 25 5 5.1 14.1
------------------------------------------------------------

(1) The Company has obtained the original property drill database
but has not certified sample custody, analytical procedure or original
data verification.

(2) The NRE prefixed holes were originally drilled by Newmont; the
RK holes by Kennecott.


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Contact Information

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