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Keegan Resources Inc. (TSX:KGN - News)(AMEX:KGN - News) ("Keegan") is
pleased to announce that the company has received an updated resource
estimate for the Esaase Gold Project in southwest
Ghana. The updated resource includes 3.23 million ounces of gold in an
indicated category with an average grade of 1.2 g/t Au at a 0.4 g/t Au cutoff
and 1.68 million ounces of gold 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 of gold. A total of
770 holes drilled at collar spacing ranging from 25m by 40m to 40m by 80m and
over 190,000m of drilling were used to establish the resource. This resource
estimation represents over 3.5 km of strike length along the A-1 structure
and includes drilling done in the B-1 and D-1 mineralized zones. Please see www.keeganresources.com
for a map showing the surface area included in this estimate.
Third party database verification, grade
shell geometry, variography, and multiple indicator
and ordinary kriging were executed out of the Perth
office of Coffey Mining.
All of the zones remain open along
strike and down dip and Keegan is currently planning an aggressive drill
program for 2011 to continue to expand the resources, particularly at depth
on the main zone and along strike on the D zone, where Keegan is continuing
to intercept mineralization as much as 2 km south of the current resource in
that zone (see NR dated November 15, 2010). Keegan is also in the midst of
extensive engineering, environmental and social studies as it pushes towards
the completion of its feasibility and environmental and social permitting
programs. Community development initiatives including book distribution,
support of local education programs, and sanitation programs are also
ongoing.
Maurice Tagami,
President and CEO of Keegan states: "The growth of the gold resources at
the Esaase deposit is a continuing testament to the
world class size and strength of the Esaase
mineralizing system. We can now look forward to adding additional resources
as part of our aggressive exploration program while we continue to rapidly
advance our project development studies with the goal to begin mine
construction in 2012."
The company is progressing with a
Pre-Feasibility Study on the Esaase Gold Project
which is planned for completion in early 2011 and has also initiated field
and development work to support a full Feasibility Study to be undertaken in
2011.
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 Pty Ltd, 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. Core portions of the drill
holes consist predominantly of HQ core. They were logged and sawn on site
with half samples sent to the lab. All samples are analyzed for gold using
standard 50 gram fire assay with atomic absorption finish by Transworld Laboratories (GH) Ltd. in Tarkwa,
Ghana, SGS Labs in Tarkwa, Ghana, and ALS Chemex Labs in Kumasi, Ghana. QA/QC programs emplaced by
Keegan and Coffey Mining show industry acceptable precision and accuracy
limits on both Certified Standards and duplicate samples. Coffey Mining Pty
Ltd, under the direction of Brian Wolfe, who is a Qualified Person with
respect to NI 43-101, validated the database and QA/QC programs, supervised
the wire-framing of the grade shells, and performed the variography,
block modeling, multiple indicator and ordinary kriging
and resource estimate and has approved this news release. Change of support
was applied to emulate increased selectivity at mining. The estimate was
evaluated by an internal peer review panel at Coffey Mining. Keegan plans to
release a 43-101 report on the updated resource shortly.
Table 1. Grade Tonnage Report Using a
Multiple Indicator Kriging Estimate(1)
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Table 1
Esaase Gold Project
Global Estimate
Multiple Indicator Kriging Estimate (8mE x 10mN x 2.5mRL Selective Mining
Unit) with Ordinary Kriging Estimate (10mE x 40mN x 5mRL Parent Cell)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Average Grade
Lower Cutoff Grade (g/t Au) Tonnes (Mt) (g/t Au) Ounces (Kozs)
---------------------------------------------------------------------------
Indicated
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0.3 99.60 1.1 3,390
0.4 84.85 1.2 3,230
0.5 71.62 1.3 3,040
0.6 60.37 1.5 2,850
0.7 51.16 1.6 2,660
0.8 43.39 1.8 2,480
0.9 37.11 1.9 2,310
1 31.99 2.1 2,150
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Inferred
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0.3 57.71 1.0 1,770
0.4 50.07 1.0 1,680
0.5 41.46 1.2 1,560
0.6 34.10 1.3 1,430
0.7 28.15 1.4 1,310
0.8 23.26 1.6 1,190
0.9 19.27 1.7 1,080
1 16.28 1.9 990
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Note: Appropriate rounding has been applied.
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 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 a figure of the Esaase Project: Resource Areas - December 2010, please
visit the following link: http://media3.marketwire.com/docs/esaase_project_dec_2010.pdf
To view a figure of the Esaase Project: D-1 Zone Drill Results - November 2010,
please visit the following link: http://media3.marketwire.com/docs/esaase_project_d-1_zone_res_nov_2010.pdf
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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