Keegan Resources Inc. is pleased to
announce the latest assay results from its Esaase Project drilling program in
southwest Ghana. Keegan has encountered significant gold intercepts (greater
than 10 g/t meter grade) in four different areas, 1) down dip extensions of
the current resource (KEDD872, 33.2 m @ 2.31 g/t Au and KEDD878, 176.9 m @
1.2 g/t Au), 2) the D-1 Abuabo zone (KERC885, 32 m
@ 1.66 g/t Au) 3), a step out hole on the of the D structure 2 km south of
existing mineralization (KERC890, 6 meters of 11.42 g/t Au and 4) a newly
discovered structure located between the D structure and the main zone (KERC
897, 11 meters of 1.44 g/t Au). For detailed locations of the drill holes in
these four areas, please see drill hole location maps at www.keeganresources.com.
Table 1: Recent results from step out
drilling from Keegan's Esaase Project. Only
intercepts with grade-widths of greater than 10 g/t meter Au are shown. Intercepts
with grade-widths of approximately 20 g/t meter Au or higher are marked with
(i). Widths are given as measured down hole and
grades are reported in g/t Au. All holes are drilled at an azimuth of
approximately 110 degrees at a dip of 45 degrees so depth from surface is
approximately 70% of drill hole depth.
Hole_ID From To Width Grade
---------------------------------------------------------------------------
KEDD864(i) 221.5(i) 252.8(i) 31.3(i) 0.78(i)
KEDD864(i) 297(i) 308.9(i) 11.9(i) 1.49(i)
KEDD864(i) 357(i) 384(i) 27(i) 1.29(i)
including(i) 383(i) 384(i) 1(i) 10.4(i)
KEDD869 130.2 136.7 6.5 1.68
KEDD872 176 185 9 0.51
KEDD872 215 229 14 1.42
including 220 221 1 10.35
KEDD872(i) 256(i) 289.2(i) 33.2(i) 2.31(i)
including(i) 284(i) 285(i) 1(i) 30(i)
including(i) 288(i) 289.2(i) 1.2(i) 12.55(i)
KEDD876 156 168.2 12.2 1.29
KEDD878(i) 199.1(i) 376(i) 176.9(i) 1.2(i)
including(i) 259(i) 265(i) 6(i) 13.31(i)
Keegan has additional assays pending
from these areas and is planning follow up programs on these exciting
developments in 2011. The company plans to continue its aggressive resource
exploration and development program into the New Year.
President and CEO Maurice Tagami stated, "These new drill results demonstrate
that like in many world class gold districts, new zones are regularly being
encountered and previously discovered zones are continuously being expanded.
The potential exists that the Project will continue to yield positive
exploration results even after we have developed Esaase
into a producing gold mine. This is consistent with many of the operating
mines in the area."
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. 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 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 six consecutive samples (six meters) of less
than 0.2 g/t Au. Mineralization in the A structure 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. 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 project (2.28 Moz indicated resources with an average grade of 1.2 g/t
Au at a 0.4 g/t Au cutoff and 1.65 million ounces in an inferred category at
an average grade of 1.2 g/t Au applying a 0.4 g/t Au cut-off for a total
inferred and indicated resource of 3.93 Moz) as
well as its Asumura gold project, both of which are
located in Ghana, West Africa, a highly favorable 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
neighboring 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 associated with this
release, please visit the following links:
http://media3.marketwire.com/docs/kgn_1115_map_a.jpg
http://media3.marketwire.com/docs/kgn_1115_map_b.jpg
Neither TSX Venture Exchange nor the
Investment Industry Regulatory Organization of Canada accepts responsibility
for the adequacy or accuracy of this release.
Contact:
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
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