Keegan Resources Inc.

Keegan Resources Inc.

October 13, 2010 13:27 ET

Keegan Continues to Receive Excellent Results From the Esaase Gold Project Stepout and Infill Drilling Programs

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 13, 2010) - Keegan Resources Inc. (TSX:KGN)(NYSE Amex:KGN) ("Keegan") is pleased to announce updated assay results from its Esaase drilling program in southwest Ghana. Keegan drilled significant intercepts in all 15 drill holes drilled either down or up dip from the existing resource, including 16 meters at 5.42 g/t Au, 43 meters of 1.81 g/t Au, and 100 meters of 0.78 g/t Au, as reported in Table 1. Please see a collar location map at

Table 1: Recent assay results from down and up dip step out drilling from Keegan's Esaase Project. Intercepts with grade-widths of approximately 40 g/t meter Au or higher are marked with (i). Widths are measured in actual drilled meters and grades are reported in g/t Au. All core holes are drilled at an azimuth of approximately 110 degrees at a dip of 45 degrees.

Hole ID From To Width Grade   Hole ID From To Width Grade
KEDD827 285 293 8 1.44   KERC834 45 66 21 1.38
KEDD827 364 392 28 0.88   including 46 47 1 11.3
including 366 367 1 14.45   KEDD835 25 39 14 0.87
KEDD828 238 271 33 0.87   KEDD835 166 171.5 5.5 0.95
KEDD829 189.8 205 15.2 1.7   KEDD835 251 278 27 1.22
including 189.8 190.9 1.1 18.1   KEDD835 323 330 7 1.09
KEDD829 236 254 18 0.58   KEDD836 184 191 7 2.05
KEDD829(i) 273 304 31 1.47   KEDD836 264 279 15 0.86
including(i) 301 302 1 17.35   KEDD851 187 204 17 1
KEDD829 316 343 27 0.68   including 187 188 1 11.15
KEDD830 130 138 8 2.1   KEDD860 170 180 10 0.57
including 131 132 1 10.55   KEDD860 218 228 10 0.84
KEDD830 216.2 247 30.8 0.72   KEDD860(i) 287 324 37 1.31
KEDD831 32 38 6 0.77   KEDD861 113 129 16 0.54
KEDD831(i) 178 278 100 0.78   KEDD861 176 186 10 0.66
including(i) 226 227 1 11.45   KEDD861 259 276 17 0.61
including(i) 255 256 1 23.7   KEDD861 304 327 23 0.81
KEDD831 330 339 9 1.08   KEDD862(i) 123 139 16 5.42
KEDD831 358 381 23 0.6   including(i) 126 127 1 51.1
KEDD832 17 38 21 0.51   KEDD862(i) 277 320 43 1.81
KEDD832(i) 234.9 275 40.1 1.54   including(i) 281 282 1 19.35
including(i) 245 246 1 15.95   and(i) 307 308 1 42.3
KERC833 4 26 22 0.6   KEDD863 0 28 28 0.7
KERC834 1 23 22 0.79   KEDD863 180 196 16 0.97
            KEDD863 326 346 20 1.11

Keegan is continuing to drill in prospective areas down dip from the existing resource as well as in the newly discovered D-1 extension area (see news dated September 8, 2010). Keegan continues to have two drills dedicated to expanding the resource and drilling new targets.

President and CEO Maurice Tagami states, "These additional new assay results continue to demonstrate that higher grade mineralization is occurring in a wider area than previously delineated. These encouraging results will be utilized in our next Esaase resource estimate. In addition, we are excited about continuing to explore new targets such as the D-1 extension."

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 Coffey Mining 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 assayed using standard 50 gram fire assay with atomic absorption finish by ALS Chemex Labs in Kumasi, 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. Repeatability in duplicate samples is generally within 10% variance. In instances where variance is greater than 10%, the assays from both samples are averaged. 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. Mineralization in the A structure strikes approximately 10 to 30 degrees east of north and dips 45 to 90 degrees to the west. Holes are drilled at 110 degrees azimuth and are inclined at 45 to 60 degrees, so true widths are estimated to be over 80% of the drilled widths. The techniques by which drill hole assays have been previously used in resource estimation at Esaase can be found in Keegan's most recent 43-101 technical report on

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 project (2.28 Moz indicated resources with an average grade of 1.2 g/t Au at a 0.4 g/t Au cutoff and 1.65 million ounces in an inferred category at an average grade of 1.2 g/t Au applying a 0.4 g/t Au cut-off for a total inferred and indicated resource of 3.93 Moz) as well as its Asumura gold project, both of which are located in Ghana, West Africa, a highly favorable and prospective jurisdiction. 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 and the NYSE AMEX under the symbol KGN. More information about Keegan is available at

On Behalf of the Board of Directors,

Shawn Wallace, Executive Chairman

Forward Looking and other Cautionary Information
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 estimated resource quantities, grades and contained metals, possible future mining, exploration and development activities, are forward-looking statements. In particular, Preliminary Economic Assessments are preliminary in nature, including Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the findings of the Preliminary Assessment will be realized. Although the Company believes the expectations expressed in the Preliminary Economic Assessment and other forward-looking statements are based on reasonable assumptions, such statements should not be in any way construed as 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 for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Company on terms acceptable to it or at all. The Company is subject to the specific risks inherent in the mining business as well as general economic and business conditions. For more information on the Company, Investors should review the Company's annual Form 20-F filing with the United States Securities Commission and its home jurisdiction filings that are available at

Information Concerning Estimates of Measured, Indicated and Inferred Resources This news release also uses the terms 'indicated resources' and 'inferred resources'. Keegan Resources Inc. advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

To view the figure "Esaase Project: Drill results September 2010", please click the following link:

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Keegan Resources Inc.
    Shawn Wallace
    Executive Chairman
    604 683 8193 or Toll Free: 1 800 863 8655
    604 683 8194 (FAX)