VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 14, 2008) - Keegan Resources Inc. ("Keegan") (TSX VENTURE:KGN)(AMEX:KGN) is pleased to announce that it has intersected 14 m of 4.47 g/t Au along the NW structure at its Asumura Property in SW Ghana. The intercept comes from one of the fences of shallow reconnaissance drill holes that Keegan has drilled as an initial test of this structure. The mineralization encountered was entirely in saprolite and will be followed up with in a subsequent drill program the scale of which will be determined once all the assays are back. Drill assays from Asumura are still pending and Keegan will release assays when received. Please see www.keeganresources.com for a map showing collar locations.
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Table 1. Intercept for discovery hole from the NW zone.
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Fence Hole_ID From (m) To (m) Width (m) Grade (g/t)
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NW92 KAR080204 36 50 14 4.48
including 37 38 1 52.2
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President and CEO Dan McCoy states: "This is an exciting discovery in an entirely new location within significant identified structures. The total strike length of this structure on the combined Asumura and the recent Mt Olive's acquisition is at least 13 km. After we have had time to interpret the gold results together with the geophysics and geology, we will follow up with future drill programs at Asumura along with a continuation of augur sampling and drilling on the Mt Olives concession."
Vincent Dzakpasu is the Qualified Person with respect to NI 43-101 at Asumura. The fences and drill holes are oriented at an azimuth of approximately 315 degrees and the holes were drilled at a dip of 45 degrees in that same azimuth. Collar spacing is approximately 50 meters along fences and up to 600 meters between fences. The drill holes are approximately 100 meters in drill length and less than 80 meters true depth. The fences and drill holes were designed to be perpendicular to the NE orientation of the structure as indicated by augur holes and aeromagnetic surveys and to only test mineralization at shallow depths (less than 100 meters depth). Although Keegan does not have a three point solution yet to completely indicate the strike and dip of the mineralization, the best analogue for economic mineralization along the western side of the Sefwi Belt is the Kenyase deposit, which is one of a series of deposits that make up Newmont's Ahafo Mine. The Kenyase deposit in this portion of Ghana is NE trending and steeply dipping to the SE. If the mineralization that Keegan intercepted in the NW area has a similar orientation, then the true width of the reported intercept could be approximately 80% of the drilled width. RC samples were taken at one meter intervals under dry drilling conditions. All reverse circulation drill samples are weighed on site. All samples are 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. A minimum of a 0.2 g/t cut off at beginning and end of the intercept was employed and the intercept has no more than six consecutive samples (six meters) of less than 0.2 g/t Au. The portion of the intercepts above 10 g/t Au is reported separately.
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 and Asumura gold projects located in Ghana, West Africa. 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-VEN and on the AMEX under the symbol KGN. More information about Keegan is available 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.
To view the Discovery Hole Location: NW Structure please click on the following link: http://media3.marketwire.com/docs/kgn514map.pdf.
Keegan Resources Inc.
Investor Relations
(604) 683-8193
Email: info@keeganresources.com
Website: www.keeganresources.com