Keegan Resources Inc.
TSX VENTURE : KGN

Keegan Resources Inc.

December 06, 2006 09:03 ET

Keegan Identifies Major Mineralized Structures at Esaase Gold Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 6, 2006) - Keegan (TSX VENTURE:KGN) is pleased to announce that it has outlined two district scale structures through a recently completed IP (Induced Polarization) program covering nearly half of the Esaase property. The recent IP results are significant because, when coupled with property wide gold-in-soil geochemistry and trench sampling results, they reveal a major northeast trending fault system that is continuously mineralized for eight km.

Keegan has focused the bulk of its efforts thus far on the Main zone, which is a 2 km portion of the continuously mineralized 8 km long structure. Keegan has focused on this portion due to the high relief and near surface bedrock which has made it ideal for trenching. However, based on these new results, Keegan believes that there is excellent potential in both a NE and SW direction from this area for additional gold deposit discoveries. The second district scale fault structure occurs approximately 700-1000 meters southwest of the first and is generally parallel. A projection of this fault system has a 4 km section with continuous 100 ppb Au plus soil anomalies. Several additional continuous 100 ppb Au anomalies occur on smaller subsidiary northeast structures on the property. Please see www.keeganresources.com for maps.

Dan McCoy, President and CEO of Keegan Resources, states: "The results of the current phase of soil and IP surveys coupled with the discoveries made during the current drill program indicate a strong correlation between the surface work and drilling. As it is these major district scale structures that contain the world class gold resources found in Ghana, we are pursuing an additional drill rig in order to rapidly advance exploration."

The company has currently completed 11 holes of its current drill program. Results are expected shortly from a number of these holes and will be released upon receipt.

Richard Haslinger, P. Eng. is the Qualified Person with respect to NI 43-101 at Esaase. All soil samples are assayed using BLEG analysis on a one kg sample by Transworld Laboratories (GH) Ltd., Tarkwa, Ghana. Please see www.keeganresources.com for maps.

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 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.

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