[Marinir] {Disarmed} Keegan's Esaase Deposit Increases to 3.83 Million Ounces of Measured & Indicated Gold

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Wed Oct 10 15:41:14 CEST 2012


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http://www.keeganresources.com/s/home.asp 

Keegan Provides Revised Resource Estimate For Esaase Gold Project 

Keegan Resources Inc. (TSX: KGN 

http://www.stockwatch.com/Quote/Detail.aspx?action=go&symbol=KGN&region=C&lookup=symbol&snapshot=default 

; NYSE KGN 

http://www.stockwatch.com/Quote/Detail.aspx?action=go&symbol=KGN&region=U&lookup=symbol&snapshot=default 

) is pleased to announce the results of a revised mineral resource 
estimate for its Esaase gold project in Ghana, West Africa. The resource 
estimate is based upon approximately 200,000 metres of RC drilling and 
78,000 metres of diamond drilling carried out over the past five years 
at Esaase. The revised Esaase mineral resource estimate consists of: 

Measured and Indicated resource of 68.92 million tonnes averaging 1.73 
grams per tonne gold for 3.83 million ounces, and 

Inferred resource of 22.23 million tonnes averaging 1.75 grams per tonne 
gold for 1.25 million ounces. 

The revised resource estimate, based on a cut-off grade of 0.8 grams per 
tonne of gold, was prepared using the same information used to compile 
the previous resource estimate at Esaase (see news release with Pre 
Feasibility Study results dated September 22, 2011 at 
www.keeganresources.com 

http://www.keeganresources.com 

) which was stated at a cut-off of 0.4 grams per tonne of gold. The 
purpose of revising the resource was to serve as a basis for a revised 
Pre Feasibility Study ("PFS") which will incorporate a change in 
open-pit mining methods to selectively mine at lower rates and higher 
grades than the September 2011 PFS. 

Shawn Wallace, President and Chief Executive Officer of Keegan, said, 
"We are very pleased with this positive step forward. The revised 
resource validates the approach that, after much consideration, we have 
undertaken in re-engineering the Esaase project. The deposit, like many 
Ghanaian gold deposits, lends itself to selective mining and the mine 
plan for the revised PFS will feature a significantly higher mill feed 
grade than our previous mine plan. With a capital cost for the project 
of approximately $260 million and our cash balance of $188 million, we 
are well positioned to rapidly move forward and advance the Esaase 
project to production. 

We are looking forward to the results of our revised PFS which will be 
complete in early 2013. The company has also initiated efforts to 
recruit a multidisciplinary suite of individuals to help strengthen our 
team with the requisite experience in mine building and operation for 
the rapid development of a highly profitable new gold mine in Ghana, the 
most desirable location in West Africa." 

The mineral resource estimate was completed by Minxcon Pty Ltd. 
("Minxcon") of Johannesburg, South Africa and reported in accordance 
with National Instrument 43-101 requirements and the South African Code 
for Reporting of Exploration Results (SAMREC) which is consistent with 
the CIM Estimation Best Practice Guidelines in Canada. The resource 
estimate was prepared by Charles J. Muller, B.Sc. Geology (Hons), 
Pr.Sci.Nat., MGSSA, a Director of Minxcon. An updated NI 43-101 
Technical Report will be filed on SEDAR at www.sedar.com 

http://www.sedar.com 

on or before November 23, 2012. 

A preliminary open pit optimization was run on the estimated grade model 
to support the requirement that Mineral Resources have reasonable 
prospects for economic extraction. The resource estimate assumes a 
long-term gold price of $1,150 per ounce, consistent with the gold price 
assumption made in the September 2011 PFS. All production and technical 
parameters assumed for the revised estimate were based on work completed 
by DRA, a Johannesburg based engineering consultant, as part of a 
Conceptual Study completed in August 2012 and outlined in a news release 
dated September 6, 2012 available at www.keeganresources.com 

http://www.keeganresources.com 

. 

The table below represents the mineral resource at the 0.8 grams of gold 
per tonne cut-off as well as at several additional cut-off grades which 
are provided for comparison purposes. The effective date of the resource 
is October 10, 2012 and the resource includes all drill results as at 
March 31, 2012. 

Cut-Off 

Au g/t Resource 

Category Tonnes 

(Mt) Gold Grade 

(g/t) Gold Ounces 

(Moz) 

0.4 Measured 30.14 1.27 1.23 

  Indicated 98.99 1.17 3.73 

  Total M&I 129.13 1.19 4.96 

  Inferred 49.39 1.11 1.76 

0.6 Measured 23.38 1.49 1.12 

  Indicated 71.25 1.44 3.29 

  Total M&I 94.63 1.45 4.41 

  Inferred 33.59 1.40 1.51 

0.8 Measured 17.52 1.75 0.99 

  Indicated 51.40 1.72 2.85 

  Total M&I 68.92 1.73 3.83 

  Inferred 22.23 1.75 1.25 

1.0 Measured 12.96 2.05 0.86 

  Indicated 37.60 2.02 2.44 

  Total M&I 50.56 2.03 3.30 

  Inferred 16.00 2.09 1.08 

NOTE: Due to rounding differences, some M&I totals may not add exactly 
with the Measured and Indicated figures. 

On Behalf of the Board of Directors, 

Shawn Wallace 

Chief Executive Officer 

About Keegan Resources Inc. 

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 (3.83 million ounces of gold in the Measured and 
Indicated category with an average grade of 1.73 g/t Au and 1.25 million 
ounces of gold in the Inferred category at an average grade of 1.75 g/t 
Au, based on a 0.8 g/t Au cut-off) located in Ghana, West Africa; a 
highly favourable 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 neighbouring communities. 

Keegan trades on the TSX and the NYSE MKT under the symbol KGN. 

More information about Keegan is available at www.keeganresources.com 

http://www.keeganresources.com 

. 

Qualified Person 

The resource estimate was prepared by Charles J. Muller, B.Sc. Geology 
(Hons), Pr.Sci.Nat., MGSSA, a Director of Minxcon Pty Ltd. of 
Johannesburg, South Africa and an independent qualified person under NI 
43-101, including the verification of the data disclosed, and the review 
and approval of the contents of this release. Richard Haslinger, P. Eng. 
Vice President Exploration for Keegan, a qualified person with respect 
to NI 43-101, has supervised the scientific or technical information for 
the Esaase property. 

CIM Definition Standards were followed for Mineral Resources. Mineral 
Resources are reported on a 100% basis; Keegan has a 90% interest in 
this project with the Ghanaian Government owning a standard 10% 
free-carried interest. 

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. 
Although the Company believes the 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. 

Neither Toronto Stock Exchange nor the Investment Industry Regulatory 
Organization of Canada accepts responsibility for the adequacy or 
accuracy of this release. 

For more information about this service, please see: 
www.infostockbiz.com 

http://www.infostockbiz.com 

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