Keegan
Continues to Encounter Significant Gold in Step Out
Drilling Programs at Esaase
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VANCOUVER,
BRITISH COLUMBIA--(Nov. 15, 2010) - Keegan Resources Inc. (TSX:KGN)(NYSE Amex:KGN) ("Keegan") 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 shown in bold
and italicized text. 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
|
221.5
|
252.8
|
31.3
|
0.78
|
KEDD864
|
297
|
308.9
|
11.9
|
1.49
|
KEDD864
|
357
|
384
|
27
|
1.29
|
including
|
383
|
384
|
1
|
10.4
|
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
|
256
|
289.2
|
33.2
|
2.31
|
including
|
284
|
285
|
1
|
30
|
including
|
288
|
289.2
|
1.2
|
12.55
|
KEDD876
|
156
|
168.2
|
12.2
|
1.29
|
KEDD878
|
199.1
|
376
|
176.9
|
1.2
|
including
|
259
|
265
|
6
|
13.31
|
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.
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