Keegan Resources Inc.
TSX VENTURE : KGN

Keegan Resources Inc.

October 18, 2006 14:03 ET

Keegan Discovers New Gold Zone at Esaase Property, Ghana

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 18, 2006) - Keegan (TSX VENTURE:KGN) is pleased to announce the discovery of a new zone of rich lode gold mineralization at the Esaase Property. The new zone is over 500 meters to the west of the mineralized trench intercepts where Keegan has begun drilling (see news release dated October 13, 2006). Highlights of the new zone are from a one meter wide exposure of quartz vein, which assayed 54.85 g/t Au. Additionally several five meter zones of altered bedrock with quartz veining assayed 4.61, 4.21 and 1.08 g/t Au. Keegan is currently using an excavator to further expose the bedrock in this area.

Dan McCoy, president and CEO of Keegan Resources states: "This new discovery supports our belief that there could be lode gold mineralization underneath the alluvial placer tailings in the creek bottoms. The main zone that we are currently drilling is significant at 1500 meters known strike length; this represents only a small portion of the property. This new discovery together with the 9 km extent of gold-in-soil anomalies suggests that several more zones of potential ore grade bedrock mineralization could be evident. We are continuing to explore the entire property while we drill our initial targets at Esaase."

The new zone has been channeled by chip sampling techniques. To test the overall width and grade of the exposure, Keegan has subsequently excavated the area and has executed a detailed channel sampling program as has been previously been executed in the area currently being drilled. Keegan is continuing its exploration program on the entire property and will excavate and channel sample all prospective zones that are amenable to such methods. Please see www.keeganresources.com for a map showing the location of this new zone.

Richard Haslinger, P. Eng. is the Qualified Person with respect to NI 43-101 at Esaase. Mr. Haslinger has recently filed a 43-101 technical report for the property at www.sedar.ca describing all results and interpretations to date as well as Keegan's specific drill plans. This report can also be found at www.keeganresources.com. All rock samples are assayed using standard fire assay with atomic absorption finish by Transworld Laboratories (GH) Ltd., Tarkwa, Ghana.

About Keegan Resources

With a primary focus on established gold districts located in stable political environments, Keegan's seasoned exploration and management team have leveraged their collective experience and networks of contacts to efficiently assess, acquire and explore high quality, mid stage, precious and base metal projects. With two active exploration programs in Ghana combined with an enviable capital structure the company is well positioned to deliver an active, exciting year for its investors.

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 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.


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

Contact Information