VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 5, 2008) - Keegan Resources Inc. ("Keegan") (TSX VENTURE:KGN)(AMEX:KGN) is pleased to announce results from step out drilling to the north of the 43-101 resource at the Esaase property. The results continue to indicate continuous gold mineralization in the close spaced, 40 x 40 meter drilling designed for resource expansion, which now extends 500 meters north from the north boundary of the previously released 43-101 resource. Some of the new significant intercepts from these close spaced holes include 10 meters of 11.47 g/t Au in drill hole 431, 35 meters of 1.75 g/t Au in drill hole 428 and 18 meters of 3.8 g/t Au in drill hole 409. Perhaps even more significantly, recent intercepts received from reconnaissance drill holes indicate continued high grade gold mineralization even farther to the north. Drill hole 443 hit 11 meters of 4.24 g/t Au over 1.1 km north of the existing 43-101 resource area; several other reconnaissance holes in the area hit significant intercepts as well (please see table 1). Keegan is currently designing further follow-up drill programs designed to continue to expand resource in this area. A drill hole collar location map showing recent north extension drilling can be found at www.keeganresources.com.
/T/
Table 1: Intercepts from North step out drilling at the Esaase property
that have a minimum grade-width of approximately 15 g/t Au x meter.
Intercepts with grade-widths of approximately 45 g/t Au x meter or higher
are bolded. Distances are in meters and grades reported in g/t Au.
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Wid- Wid-
Hole ID From To th Grade Location Hole ID From To th Grade Location
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KERC393 205 213 8 5.8 north KERC429 189 202 13 0.97 north
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including 208 210 2 17.4 north KERC429 259 276 17 0.95 north
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KERC394 62 75 13 1.42 north KEDD431 297 307 10 11.47 north
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KERC394 164 192 28 1.08 north including 298 299 1 101 north
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including 176 177 1 14.8 north and 306 307 1 12.5 north
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KERC395 93 118 25 0.7 north KEDD432 205 216 11 1.18 north
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KERC395 191 216 25 1.51 north KERC434 111 119 7 5.04 Far north
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KERC409 43 61 18 3.8 north including 113 115 2 17.1 Far north
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including 45 46 1 36.5 north KERC442 72 77 5 5.85 Far north
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and 53 54 1 15.1 north including 76 77 1 28.8 Far north
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KEDD417 203 212 9 2.17 north KERC443 146 157 11 4.24 Far north
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including 203 204 0.8 22.41 north including 146 147 1 19.4 Far north
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KEDD419 117 135 18 1.12 north KEDD446 180 188 8 2.13 north
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KEDD420 239 245 7.3 3.82 north KERC447 99 120 21 0.73 north
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including 241 241 0.7 15.45 north KERC447 153 159 6 3.91 north
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KERC424 114 141 27 1 north including 154 155 1 15.6 north
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KERC427 158 171 13 1.43 north KERC450 141 155 14 1.91 north
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KEDD428 24 46 22 1.27 north KEDD451 134 157 23 2 north
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KEDD428 230 265 35 1.75 north including 146 147 1.1 27.9 north
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including 260 261 1 19.8 north
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including 263 264 1.15 19.35 north
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/T/
Interpretation of the close spaced north resource expansion program indicates a similar geometry in the north extension as to the gold enriched zones present in the 43-101 resource to the south. There is a basal zone of gold mineralization on or near the moderately dipping "A" structure, which is the dominant, deep seated, regional fault in the area. There are also one or more hanging wall zones of gold mineralization that occur above this basal fault zone. In the north extension, these hanging wall zones carry some of the highest grade intercepts.
President and CEO Dan McCoy states: "The results once again confirm the impressive size and continuity of the Esaase gold mineralizing system and increase the likelihood that a large, modern, low cost mine can be developed on the property."
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 RSG Global, 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. Drill core is HQ diameter and is split logged and sampled on site. All core and RC samples are assayed using standard 50 gram fire assay with atomic absorption finish by Transworld Laboratories (GH) Ltd. in Tarkwa, Ghana, SGS Labs in Tarkwa, Ghana, or 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. All internal intercepts above 10 g/t Au are reported within the intercept. Intercepts of less than 15 g/t Au x meter grade-thickness are not routinely reported. 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 degree azimuth and are inclined at 45 to 60 degrees, so true widths are estimated to be over 80% of the drilled widths.
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 Esaase Drill hole Location Map please click on the following link: http://media3.marketwire.com/docs/kgn95m.pdf.
Keegan Resources Inc.
Investor Relations
(604) 683-8193 or Toll Free: 1-800-863-8655
(604) 683-8194 (FAX)
Email: info@keeganresources.com
Website: www.keeganresources.com