Keegan Continues to Encounter Significant Gold Intercepts in Resource and Exploration Drilling
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/02/11 -- Keegan Resources Inc. (TSX: KGN)(NYSE Amex: KGN) ('Keegan') is pleased to announce the latest assay results from its Esaase Project drilling programs in southwest Ghana. In its resource infill drilling program, Keegan has encountered significant, consistent gold intercepts including 138 m of 1.63 g/t Au (KGRC010), 116 m of 1.4 g/t Au (KEDD987), 85 m of 1.4 g/t Au (KERC976), and 43 m of 1.89 g/t Au (KERC982). In its Main Zone resource expansion program, Keegan continues to encounter significant gold bearing intercepts in down dip step-out holes, including 100.9 meters of 1.64 g/t Au (KEDD956), 48 meters of 1.83 g/t Au (KEDD965), 155 meters of 0.64 g/t Au (KEDD974) and 10 meters of 6.01 g/t Au (KEDD953). At the D-1 Zone, Keegan drilled 38 meters of 1.79 g/t Au (KGDD038) down dip from the current resource. At the E zone, recently discovered under alluvial cover (see NR dated January 21, 2011), Keegan intercepted 26 meters of 1.23 g/t Au (KEDD988). In a hole drilled 400 m to the north of the current extent of the Main Zone resource, Keegan intercepted 6 meters of 5.55 g/t (KGRC030). Keegan currently has over 88 drill holes pending assay and is continuing its aggressive development and exploration drill programs. For detailed listing of intercepts see Tables 1 and 2. Please see www.keeganresources.com for a drill hole location map and sections.
President and CEO Maurice Tagami states, 'We are pleased with these new drill results as they show the strength and consistency of mineralization within the current resource as well as the potential of adding to the Esaase resource through resource expansion and the exploration of new zones. We are well financed and expect to continue the aggressive pace of our exploration and development programs throughout 2011, while at the same time progressing and expanding our community engagement and environmental permitting programs.'
Table 1: Recent results from Keegan's Resource Infill program.
Hole ID From To Width Grade Hole ID From To Width Grade
KEDD949 3 40 37 1.4(i) KERC991 125 175 50 1.44(i)
including 38 39 1 32.4(i) including 155 156 1 14.15(i)
KEDD949 86 135 49 1.12(i) KERC993 0 26 26 2.23(i)
KEDD949 212.8 234 21.2 1.14(i) including 1 2 1 23.8(i)
including 231 232 1 11.2(i) KERC993 73 104 31 0.89(i)
KERC976 98 183 85 1.4(i) KERC993 125 183 58 0.94(i)
including 132 133 1 52.7(i) KERC994 11 21 10 0.6
KERC978 11 17 6 0.53 KERC994 33 121 88 0.64(i)
KERC978 72 134 62 1.3(i) KERC996 2 18 16 0.87
KERC979 0 16 16 1.07 KERC996 90 181 91 1.06(i)
KERC979 27 41 14 3.29(i) KERC997 12 67 55 0.78(i)
including 31 32 1 32.8 KERC997 77 114 37 1.38(i)
KERC979 82 94 12 2.16(i) KEDD998 101 106 5 1.56
KERC979 108 118 10 1.19 KERC999 3 12 9 0.91
KERC979 138 200 62 1.3(i) KGRC001 7 71 64 1.65(i)
KERC980 51 72 21 2.66(i) KGRC002 8 45 37 0.97(i)
including 65 66 1 11.85(i) including 45 46 2 17.75(i)
including 70 71 1 14.3(i) KGRC003 1 54 53 1.18(i)
KERC981 4 22 18 1.12 KGRC004 3 26 23 0.88
KERC981 69 174 105 0.73(i) KGRC004 37 62 25 1.18(i)
KERC982 10 42 32 0.99(i) KGRC004 96 109 13 0.71
KERC982 81 94 13 0.68 KGRC005 2 160 158 1.58(i)
KERC982 127 134 7 0.7 including 36 38 2 16.03(i)
KERC982 148 191 43 1.89(i) KGRC006 3 94 91 0.76(i)
including 159 160 1 21.7(i) KGRC007 82 159 77 1.21(i)
and 183 184 1 17.9(i) KGRC007 4 35 31 1.15(i)
KERC983 7 12 5 0.742 KGRC008 1 6 5 1.81
KERC983 26 40 14 1.44 KGRC008 78 119 41 1.47(i)
KERC983 102 129 27 0.61 KGRC009 6 76 70 1.04(i)
KERC983 164 195 21 1.2 including 75 76 1 12.95(i)
KERC984 16 44 28 1.12(i) KGRC009 102 108 6 0.75
including 34 35 1 11.9(i) KGRC009 154 159 5 0.77
KERC984 87 185 98 1.21(i) KGRC010 1 53 53 3.09(i)
including 111 112 1 10.15(i) including 36 37 1 46.5(i)
and 179 180 1 12.7(i) and 44 46 2 17.75(i)
and 181 182 1 11.5(i) KGRC010 68 80 12 0.91
KERC986 73 104 31 0.87(i) KGRC010 89 136 47 1.04(i)
KERC986 158 177 21 1.18(i) KGRC024 3 65 62 0.83(i)
KERC987 0 116 116 1.4(i) KGRC024 106 127 21 0.96
including 86 87 1 11.65(i) KGRC025 16 72 56 1.28(i)
and 88 89 1 15.65(i) including 31 32 1 26.5(i)
and 91 92 1 23.4(i) KGRC025 113 144 31 1.75(i)
KERC989 45 91 46 1.18(i) KGRC025 192 200 8 0.72
KERC989 103 139 36 1.07(i) KGRC026 102 116 14 1.39
KERC990 19 33 14 1.35 KGRC026 5 15 10 0.63
KERC990 47 116 69 0.98(i) KGRC026 41 86 45 0.99(i)
KERC991 33 39 6 1.39 KGRC026 156 165 9 0.64
KERC991 79 115 36 0.61(i)
Table 2. Recent results from Keegan's Resource Expansion and Exploration
program.
Main zone resource expansion Main zone resource expansion
holes holes (cont.)
Hole ID From To Width Grade KEDD970 434 458 24 0.95(i)
KEDD951 131 138 7 0.7 KEDD971 155 169 14 0.8
KEDD951 147 161.2 14.2 0.52 KEDD971 253 271 18 0.73
KEDD951 226 308.3 82.3 1.13(i) KEDD972 127 161 34 1.46(i)
including 291 292 1 20.1(i) including 150 151 1 28.3(i)
including 304 305 1 15.35(i) KEDD973 493 505 12 2.56(i)
KEDD951 174 179 5 1.03 including 493 494.1 1.1 25.1(i)
KEDD952 311.1 324.9 13.8 1.94(i) KEDD974 349.6 378 28.4 0.75
KEDD952 89 97 8 0.94 KEDD974 349.6 505 155.4 0.64(i)
KEDD953 283 293 10 6.1(i) KEDD975 169 188 19 0.92
including 290 292.1 2.1 26.2(i) KEDD975 384 412 28 0.53
KEDD953 329 340 11 1.13 KEDD977 200 244.3 44.3 1.04(i)
KEDD954 279 285 6 3.38 including 235 236 1 17.95(i)
KEDD955 210.1 231 20.9 1.67(i) KEDD977 270 306 36 1.19(i)
including 214 215.2 13.4 1.2(i) KGDD021 382 397 15 2.56(i)
KEDD955 245 269 24 0.88 including 387 388 1 11.05
KERC956 4 15 11 0.55 KGRC021 84 89 5 1.12
KEDD956 320 325 5 3.44 KGDD040 6 26 20 0.9
including 321 322 1 13.75 KGDD040 51.3 60 8.7 0.97
KEDD956 369 387 18 0.85 KGDD040 178 199 21 1.03(i)
KEDD956 439.1 540 100.9 1.64(i) KGDD040 239 246 7 1.71
including 500 501 1 52.8(i) KGDD040 317 323 6 3.5
KEDD959 297 336 39 1.49(i) including 317 318 1 18.4
including 303.1 304 0.9 11.5(i) KGDD047 489 529 40 0.85(i)
KEDD959 351 378 27 3.04(i) KGDD047 563 576 13 1.06
including 364 365 1 19.45(i) D-1 (abuabo) resource expansion
including 366 367 1 13.85(i) intercepts
KEDD960 421 427 6 1.56 Hole ID From To Width Grade
KEDD960 477 498 21 2.07(i) KGDD037 231 245 14 1.55
including 484 485.1 1.1 18.15(i) KGDD038 241 279 38 1.79(i)
KEDD960 550 566.7 16.7 1.89(i) including 253 254 1 12.15(i)
KEDD961 360 377 17 0.52 KGDD039 286.3 326 40 0.61(i)
KEDD961 324 334 10 1.21 E zone exploration holes
KEDD965 104 113.1 9.1 1.76 Hole ID From To Width Grade
KEDD969 233 276 43 1.34(i) KEDD985 87.2 100 12.8 0.83
KEDD965 288.3 309 20.7 0.75 KEDD988 7 15 8 1.4
KEDD965 379 392 13 5.07(i) KEDD988 40 66 26 1.23(i)
including 385 386 1 61.1(i) KEDD992 74 80 6 1.25
KEDD965 422 460 48 1.83(i) Northern Extension exploration holes
including 428.2 429.1 0.9 12.65(i) Hole ID From To Width Grade
KEDD965 491 512 21 1.63(i) KGRC020 58 64 6 1.36
including 493 494 1 25.1(i) KGRC030 85 91 6 5.55(i)
KEDD966 444 478 34 1.53(i) including 89 90 1 30.7(i)
including 476 478 2 14.73(i)
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 Coffey Mining 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 and all core is drilled at HQ diameter and sawed into equal halves on site. All samples are assayed using standard 50 gram fire assay with atomic absorption finish by ALS Chemex Labs in Kumasi, 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. Repeatability in duplicate samples is generally within 10% variance. In instances where variance is greater than 10%, the assays from both samples are averaged. Intercepts were mostly 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 eight consecutive samples (eight meters) of less than 0.2 g/t Au. Mineralization in the main zone strikes approximately 10 to 30 degrees east of north and dips 45 to 90 degrees to the west. Holes are drilled at 110 degrees azimuth and are inclined at 45 to 60 degrees, so true widths are estimated to be over 80% of the drilled widths. Intercepts are calculated using a 0.5 g/t lower cutoff over at least 5 meters. The intercepts reported in this release were only those with grade-widths above 8 g/t times meter. Those above 20 g/t meter are shown in bold, italicized (i) font. The techniques by which drill hole assays have been previously used in resource estimation at Esaase can be found in Keegan's most recent 43-101 technical report on www.sedar.com.
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 is focused on its wholly owned flagship Esaase Gold project (3.23 million ounces gold indicated resources with an average grade of 1.2 g/t Au at a 0.4 g/t Au cutoff and 1.68 million ounces in an inferred category at an average grade of 1.0 g/t Au applying a 0.4 g/t Au cut-off for a total inferred and indicated resource of 4.91 Moz) as well as its Asumura gold project, both of which are located in Ghana, West Africa, a highly favourable and prospective jurisdiction. Managed by highly skilled and successful technical and financial professionals, Keegan 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 neighbouring communities. Keegan trades on the TSX and the NYSE AMEX under the symbol KGN. More information about Keegan is available at www.keeganresources.com.
On Behalf of the Board of Directors,
Shawn Wallace, Executive Chairman
Forward Looking and other Cautionary Information
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 estimated resource quantities, grades and contained metals, possible future mining, exploration and development activities, are forward-looking statements. In particular, Preliminary Economic Assessments are preliminary in nature, including Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the findings of the Preliminary Assessment will be realized. Although the Company believes the expectations expressed in the Preliminary Economic Assessment and other forward-looking statements are based on reasonable assumptions, such statements should not be in any way construed as 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 for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Company on terms acceptable to it or at all. The Company is subject to the specific risks inherent in the mining business as well as general economic and business conditions. For more information on the Company, Investors should review the Company's annual Form 20-F filing with the United States Securities Commission and its home jurisdiction filings that are available at www.sedar.com.
Information Concerning Estimates of Measured, Indicated and Inferred Resources This news release also uses the terms 'indicated resources' and 'inferred resources'. Keegan Resources Inc. advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
To view the maps accompanying this press release please click on the following link: http://media3.marketwire.com/docs/KGN0602.pdf
Neither TSX Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Keegan Resources Inc.
Shawn Wallace
Executive Chairman
604 683 8193 or Toll Free: 1 800 863 8655
604 683 8194 (FAX)
www.keeganresources.com