Keegan Resources Inc.
TSX VENTURE : KGN

Keegan Resources Inc.

January 25, 2006 13:29 ET

Keegan Reports Extension of IP And Gold-in-Soil Anomaly at Asumura

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 25, 2006) - Keegan (TSX VENTURE:KGN) is pleased to announce new results from the Asumura Property in southwest Ghana. Keegan completed an extensive Induced Polarization geophysical study on the Wagyakrom anomaly and extended its gold-in-soil anomalies to the north and south. The results show a strong coincident chargeability high (15-30 mmsec), resistivity low (less than 200 ohm metres with high resistivity in both sides) and gold-in-soils high (19 consecutive 100-meter spaced lines with at least 50 ppb Au). The coincident anomalies suggest the possibility of a strong, gold and sulfide bearing fault of at least 2 km length (see www.keeganresources.com for maps and details).

Keegan has also received assays from additional trenches at the Twiapasi anomaly following up on the trench intercept previously reported (6 metres of 4.6 g/t Au). A total of four new trenches were placed to the south, east and west of the original trench. The new trenches demonstrate excellent continuity of gold mineralization in NE trending structures in the low and mid 100's of ppb gold range.

The Asumura Project is located within a favorable geological setting on a large convex flexure of the Sefwi greenstone belt. Each convex flexure of the Sefwi and Ashanti greenstone belts besides Asumura has delivered multi-million ounce deposits; the most recent discoveries occurring in Newmont's (TSX:NMX)(NYSE:NEM) Ahafo gold district (proven and probable reserves of 10.6 M oz at an average gold grade of 0.068opt (1.92g). The Asumura concession comprises a 210 square kilometer area 65 kilometres south of Ahafo along the same belt boundary. Vincent Dzakpasu, a qualified member of the Institute of Mining and Metallurgy in the United Kingdom is Keegan's QP on the property. Assays were performed by BLEG analysis at TWL labs in Tarkwa, Ghana, and IP was performed by Goknet, Ltd of Ghana. The IP anomalies discussed result from contouring of 2D inversion profiles at 100 metres depth.

In other news, Keegan has appointed John Eren as Manager of Investor Relations. Mr. Eren received a Honors BA in Economics at Laurentian University in 1994, and has previously worked as a senior sales representative for Xerox Canada. His most recent position was as Program Manager in the Production Systems Group where he was successful in helping fortune 500 companies reach their critical goals of increasing productivity and expanding company horizons.

Dan McCoy, President and CEO of Keegan Resources, states: "We are excited about the upcoming drilling program. We feel that the geophysical and geochemical anomalies, combined with the geological setting, indicate the potential for a world-class gold deposit. We are also very happy to have John on board as our Manager of Investor Relations. His sharp market insight, good instinct, and people skills are a great addition to our group."

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 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.

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.


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