Keegan Resources Inc.
TSX VENTURE : KGN

Keegan Resources Inc.

May 02, 2007 08:01 ET

Keegan Resources Inc.: Resource Drilling Program Continues to Expand Size of Potential Resource at Esaase Gold Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 2, 2007) - Keegan Resources Inc. (the "Company") (TSX VENTURE:KGN) is pleased to release the results of 21 new drill holes from the reverse circulation resource definition program at Esaase. The total area now covered by the program is approximately 1100 meters by 200-600 meters with depths between 100-300 meters (see www.keeganresources.com for a map showing drill hole locations and cross-sections). Significant intercepts were encountered in 19 of 21 holes. Highlights include 98 meters of 1.38 g/t Au, 43 meters of 2.00 g/t Au, 72 meters of 1.00 g/t Au, and 62 m of 1.14 g/t Au.

Evaluation of the results in plan and section continues to show multiple parallel, moderately west-dipping zones of gold mineralization with excellent grade continuity along and between sections. Drilling to the west indicates that grade and thickness of the original zones continue to increase down dip on virtually every section, while new zones of moderately dipping mineralization are being discovered in the hanging wall. As a result of the favorable topography Keegan is quickly adding large amounts of potential gold resources at modest depths and has still not closed off the system either along strike or down dip.

Table 1. Gold Intercepts from Keegan's Esaase RC Program



Hole ID from to width Grade
KERC065 3 27 24 0.56
KERC065 43 51 8 0.62
KERC065 72 134 62 1.14
including 95 96 1 25.74
KERC065 139 145 6 0.86
KERC065 158 230 72 1.00
including 219 221 2 17.8
KERC066 4 29 25 0.53
KERC066 43 101 58 1.1
including 44 45 1 11.5
and 84 85 1 17.1
KERC066 113 153 40 0.51
KERC067 35 72 37 0.78
KERC067 89 118 28 1.04
KERC067 137 142 5 1.27
KERC068 3 38 35 0.77
KERC068 48 64 16 0.51
KERC068 86 106 20 1.38
including 91 92 1 18.7
KERC068 85 92 7 0.65
KERC069 assays pending
KERC070 assays pending
KERC071 assays pending
KERC072 66 73 7 0.54
KERC072 80 190 110 0.7
including 80 119 39 1.02
KERC072 203 211 8 0.61
KERC073 45 143 98 1.38
including 104 105 1 33.7
including 109 111 2 16
KERC073 175 181 6 0.84
KERC073 205 236 31 0.79
KERC073 253 270 17 0.76
KERC073 305 315 10 0.97
KERC074 18 28 10 0.75
KERC074 96 104 8 1.29
KERC074 147 165 18 0.71
KERC075 0 35 35 1.05
KERC075 75 89 14 0.75
KERC075 96 113 17 0.57
KERC076 0 13 13 1.01
KERC076 22 37 15 0.81
KERC077 45 50 5 2.08
KERC077 86 117 31 0.63
KERC078 77 88 11 1.16
KERC079 2 10 8 1.05
KERC079 37 71 44 0.91
KERC079 82 97 15 0.61
KERC079 104 115 11 0.8
KERC080 9 20 11 0.78
KERC080 31 42 11 0.74
KERC081 1 39 39 0.54
KERC082 no significant intercepts
KERC083 no significant intercepts
KERC084 2 17 15 0.71
KERC084 26 41 15 1.8
KERC084 65 70 5 1.53
KERC084 77 84 7 2.51
including 77 78 1 13.3
KERC084 105 110 5 3.42
including 109 110 1 16.1
KERC085 0 20 20 0.63
KERC085 99 109 10 1.37
KERC086 0 14 14 0.55
KERC087 0 5 5 1.44
KERC087 15 27 12 0.69
KERC087 112 168 46 1.01
including 164 165 1 14.2
KERC088 17 25 8 0.9
KERC088 50 65 15 0.97
KERC088 116 128 12 0.95
KERC088 150 163 13 0.55
KERC088 174 180 6 2.83
KERC089 33 47 14 0.62
KERC089 69 81 12 0.66
KERC089 159 202 43 2.00
including 190 191 1 50.5
KERC089 209 214 5 3.05
KERC092 89 134 45 0.59
including 162 163 1 13.3


Dan McCoy, President and CEO of Keegan, states: "These results continue to demonstrate increased size potential, amenable geometry and topographic expression, but most importantly, the excellent gold grade continuity necessary for a low cost open pit gold mining operation. We are very impressed by the emerging size potential of the deposit as we encounter very significant widths of greater than one gram per ton gold mineralization which remains open. We are in the process of delineating a significant gold deposit in one of the world's most prolific gold regions."

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 drill samples are weighed on site and assayed 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. Keegan has designed a preliminary metallurgical program and is in the midst of collecting samples for such a program. Socioeconomic studies and evaluation of previous operator's environmental baseline studies are in effect.

Intercepts were calculated using a minimum of a 0.2 g/t cut off at beginning and end of the intercept and allowing for no more than five consecutive samples (five 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.

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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