Keegan Resources Inc.
TSX VENTURE : KGN

Keegan Resources Inc.

September 06, 2007 08:01 ET

Keegan Drills 36 m of 2.5 g/t, 44 m of 2.18 g/t, and 16 m of 3.63 g/t Gold in Large Step-Out Holes at Esaase

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 6, 2007) - Keegan (TSX VENTURE:KGN) is pleased to release the results of 9 new-step out drill holes and three depth extensions of existing holes from its resource definition drill program at the Esaase Gold Property. The drilling was successful at adding potential resource both at depth and down dip on section 10160 (e.g. 36 m @ 2.35 g/t in hole 136) as well as revealing higher grade in a large step-out to the south where hole 138 intersected 44 m of 2.18 g/t Au, 19 m of 2.52 g/t Au, and 16 m of 3.63 g/t Au. The discovery of the continuity of shallowly dipping mineralization in the north (section 10160) adds potential for more resource as this zone may be continuous with down dip extensions recently discovered on section 9840, 320 meters to the south where Keegan is currently drilling. Drill holes, 137, 138, 140, and 141 are the first 80 meter spaced RC holes to the far south of the Main Zone and extend the potential for continuous resource over 2 km as well as identifying a potential higher grade area as revealed by the intercepts in hole 138 (please see www.keeganresources.com for updated maps and section).



Table 1. Gold Intercepts from Keegan's Main Zone Resource Definition
Drilling

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Drill Hole From To Width (m) Grade (g/t)
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KERC039 129 162 33 0.65
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KERC039 176 195 29 0.84
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KERC040 126 145 19 1.4
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KERC042 122 147 25 1.2
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KEDD126 122 127 5 0.56
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KEDD126 188 219 31 0.8
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KEDD127 139 150 11 0.64
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KEDD127 163 168 5 0.78
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KEDD127 179 186 7 0.53
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KEDD128 301 309 8 0.57
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KEDD128 333 349 16 1.14
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KERC135 30 69 39 0.51
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KERC135 107 154 47 0.7
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KERC135 170 200 30 1.27
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KERC136 118 135 17 0.85
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KERC136 174 192 18 0.62
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KERC136 226 262 36 2.35
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including 228 230 2 14.9
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KERC137 163 183 20 1.38
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KERC138 87 131 44 2.18
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including 93 94 1 10.20
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and 113 115 2 30.15
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KERC138 145 164 19 2.52
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including 146 147 1 37.60
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KERC138 171 187 16 3.63
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including 171 172 1 33.00
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KERC140 68 91 33 0.97
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including 79 80 1 11.9
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KERC141 84 109 25 0.66
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KERC141 171 181 10 0.84
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Dan McCoy, President and CEO of Keegan states: "These are very good results for the Esaase project, as they significantly increased both the size and the potential overall gold grade of the resource at the Main Zone. Combined with the amenable geometry, favorable topographic expression and initial positive metallurgy, Keegan is getting closer to its goal of identifying a large, open pit resource. Moreover, mineralization continues to remain open in several directions."

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. Core portions of the drill holes consist exclusively of HQ core. They are logged and sawn on site with half samples sent to the lab. 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.

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 owns the right to earn 90% of its flagship Esaase and Asumura gold projects located in Ghana, West Africa. Managed by highly skilled and successful board members and advisors, Keegan efficiently executes its project development plans and 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 under the symbol KGN. More information about Keegan is available at www.keeganresources.com.

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 www.sedar.com.

To view Esaase Main Zone grade thickness contour and thematic map, please click the following link: http://www.ccnmatthews.com/docs/Esaase.jpg

To view section 10160 from Main Zone at Keegan's Esaase deposit, please click the following link: http://www.ccnmatthews.com/docs/10160.jpg

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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