Category: Uncategorized
May 28th

Keegan Hits Excellent Gold Grades on Stepout Holes at Esaase Gold Property

Keegan Resources Inc. (\"Keegan\") (TSX VENTURE: KGN)(AMEX: KGN) is pleased to announce the results of six new stepout drill holes drilled 260-380 meters north of the Main Zone, which hosts Keegan\'s current 43-101 compliant resource. Highlights include 24 meters of 2.64 g/t Au, 22 meters of 2.63 g/t Au and 56 meters of 1.22 g/t Au. These are the first tightly spaced wide bore holes placed along the north extension of the A fault. Holes 338-341 intercepted mineralization at relatively shallow depths (34-117 meters hole depth). Conversely, drill holes 315 and 316 encountered mineralization between 296 to 518 meters hole depth, suggesting hundreds of meters of down dip resource potential. Keegan plans to continue to aggressively test this structure along strike and down dip in the near future. Please see www.keeganresources.com for a drill hole location map.
Table 1. Significant stepout hole intercepts from north extension zone
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Hole_ID      From (m)    To (m)  Width (m)  Grade (g/t)
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KEDD315          402       439         37         1.04
including        427       428          1         11.2
KEDD315          463       519         56         1.22
including        491       492          1         15.6
and            500.8       502        1.2         10.4
and              517     518.2        1.2         14.2
KEDD316          265       275         10         1.55
KEDD316          296       307         11         1.15
KEDD316          393       406         13         0.59
KEDD316          431       447         16          1.3
KERC338           28        48         20         2.75
including         31        32          1        11.95
and               46        47          1         12.2
KERC338           89       103         14         1.04
including        101       102          1         10.2
KERC339           53        63         10         0.75
KERC339           76        84          8         0.63
KERC339          160       165          5         1.13
KERC340           34        54         20         1.05
KERC340           70        88         18         0.91
KERC340          117       141         24         2.64
including        135       136          1         54.3
KERC341           55        77         22         2.63
including         63        64          1        36.81
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President and CEO Dan McCoy states: \"These drill hole results, which add hundreds of meters of strike length and down dip potential on the north end of the resource, provide additional evidence of the world class potential of the Esaase gold system. We will be working hard to continue to stepout from known mineralization, to test new targets, and to continue our infill program in order to better define and delineate this growing resource.\"

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. 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. 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 5 meters or less than 0.5 g/t Au were not reported. Mineralization strikes approximately 30 degrees east of north and dips 45 to 60 degrees to the west. The drill holes are oriented at 110 degrees azimuth and are inclined at 45 degrees to the east, 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 map accompanying this release please click on the following link: http://media3.marketwire.com/docs/kgn527map.pdf.

The TSX Venture and AMEX Exchange have not reviewed and do not accept responsibility for the adequacy or the accuracy of this release.

Contacts: Keegan Resources Inc. Investor Relations (604) 683-8193 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Website: www.keeganresources.com

SOURCE: Keegan Resources Inc.

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