Keegan Resources Inc.
TSX VENTURE : KGN

Keegan Resources Inc.

June 23, 2005 14:05 ET

Keegan Provides Drilling Update on Nevada Projects

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 23, 2005) - Keegan Resources Inc. (TSX VENTURE:KGN) is pleased to announce that it has obtained a core rig and drillers that will test targets on all of its Nevada properties starting July 5th and continuing until the end of the year if necessary. The drill will start on the Horse Mountain project on July 5th. The roads and sites have been prepared, but very unusual high water conditions in Nevada have slightly delayed drill mobilization until the end of this month.

Keegan plans to drill two deep holes at its Horse Mountain Property, a potential northern extension of the Carlin Trend. The first hole will test a buried Miekle or Ren like Carlin-type deposit in the northern portion of the property where structural, stratigraphic, alteration and geochemical features are all favorable for such deposits. The second hole will test for an intermediate depth Carlin-type target in a prominent soil pediment anomaly projected above favourable Pennsylvanian-Permian Antler Sequence rocks, the same stratigraphic horizon hosting major gold deposits in the Battle Mountain district. Drill plans and sections for both targets are available for viewing on Keegan's website (www.keeganresources.com).

After Horse Mountain, and subject to regulatory approval, Keegan plans to take the drill to it's Regent Property, located 36 miles SE of Fallon Nevada on the NW edge of the Walker Lane Metallogenic Belt. Keegan plans a 13 hole drill program designed to discover an underground vein resource such as that currently being mined by Newmont Gold Corp. at Midas and developed by Great Basin Gold (TSX: GBG) at Ivanhoe. Keegan is applying modern methods of vein exploration to a property where past operators have already drilled 38 intercepts with at least five feet of at least 5 g/t Au. Keegan has placed drill sections and plans for viewing on its website that show its planned drillholes relative to previous high grade intercepts.

After Regent, Keegan plans to take the drill to its Fri property, located 25 miles northwest of Tonopah near the heart of the prolific northwest trending Walker Lane Metallogenic Belt. Keegan plans to follow-up drilling on a lone hole drilled in 1972 that intercepted 20' @ 6.1 g/t Au, 8' @ 3.3 g/t Au and 10' @ 2.3 g/t Au between 800 and 900 feet in depth.

Dan McCoy, President and CEO of Keegan Resources Inc., states: "We feel fortunate to have contracted a drill capable of testing targets on all of our Nevada properties during a time when drill rigs are at such a premium in Nevada. We firmly believe that all of our Nevada projects have the potential for major discovery and are looking forward to the results."

Qualified Persons

Keegan Resources Inc. has retained the services of Jim Oliver, Ph.D. and Certified Professional Geologist, as the Company's Qualified Person with respect to National Instrument 43-101 on its Horse Mountain Property. Richard Haslinger, a Certified Professional Geologist, is the Company's qualified person with respect to National Instrument 43-101 on Keegan's Regent and FRI projects.

About Keegan Resources

With a primary focus on the United States and Canada, 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 active exploration programs in Nevada and Ghana combined with an enviable capital structure the company is well positioned to deliver an active, exciting year for its investors.

The Keegan team was assembled in late 2004 drawing talent from diverse backgrounds all sharing the vision of discovering and developing leveraged mineral assets in the world's most prolific mining jurisdictions.

On Behalf of the Board of Directors

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.


TSX Venture Exchange does not accept responsibility for the accuracy or adequacy of this news release.

Contact Information