Keegan Resources Announces Land Swap for Small Scale Mining Reserve at Its Esaase Gold Project
November 21 2012 - 8:15AM
Marketwired
Keegan Resources Inc. (TSX:KGN)(NYSE MKT:KGN)(NYSE Amex:KGN) -
Highlights:
-- Acquired 10.3 square kilometres of high priority exploration ground
immediately on strike to the southwest of the Esaase main zone.
-- Company set to initiate extensive exploration plans for 2013 at Esaase.
Keegan Resources Inc. ("Keegan" or "Company") is pleased to
announce that it has completed the acquisition of the Small Scale
Mining Reserve located immediately on strike to the southwest of
the Esaase main zone. The area was previously reserved by the
Government of Ghana exclusively for small scale mining activity.
The Company reached an Agreement (the "Land Swap Transaction") in
April 2012 with the Mpatoam Small Scale Mining Company under which
it has exchanged a portion of its Jeni River Mining Lease (12.5
square kilometres) for the Small Scale Mining Reserve (10.3 square
kilometres). On October 30, 2012 the Minister of Lands and Natural
Resources approved the certificate of surrender of the Small Miners
concessions and on November 20, 2012 the Minerals Commission
updated the official Mineral Cadastral Map to reflect the
relinquished Jeni River concession area and Keegan's addition of
the Small Scale Mining Reserve to the Jeni River Mining Lease.
The newly acquired ground represent a high-priority exploration
target located approximately two kilometres southwest of the Esaase
main zone. Electromagnetic survey data and mapping of alluvial
workings in the area show that there are two significant sources of
alluvial gold in the Jeni River drainage area - the Esaase main
zone and the new target. Please refer to the map at the end of this
release (available at the following link:
http://media3.marketwire.com/docs/kgn1121.pdf) or visit the website
at www.keeganresources.com.
Keegan has re-initiated exploration activity at the Esaase site
with the top priority being the evaluation of the newly acquired
ground. Keegan expects to begin work on the property in the coming
weeks and to mobilize a drill to the property early in 2013. The
Company also announces the appointment of Benjamin Gelber as
Manager Exploration. Benjamin has been involved in the exploration
activity at Esaase for the past four years. Richard Haslinger will
continue to support Benjamin in his new role as a geological
consultant to the Company.
Shawn Wallace, Chairman commented: "The completion of the Land
Swap Transaction represents a significant milestone for Keegan. The
entire Keegan team has been working on this transaction for well
over three years and its completion represents a substantial step
towards achieving one of our main strategic objectives - to
continue to explore and make strategic land acquisitions that
provide growth opportunities for the Company. The Company has long
held the view that this particular target was the most attractive
known opportunity to add to the substantial gold resources already
outlined at Esaase."
"The Land Swap Transaction also creates important benefits for
local stakeholders and small scale legal alluvial miners by
exchanging ground that has seen alluvial gold fully depleted for a
portion of our Jeni River concessions that has strong potential for
hosting alluvial gold. This is truly a win-win situation for Keegan
shareholders and the local Ghanaian small scale miners."
On behalf of the Board of Directors,
Shawn Wallace, Chairman of the Board
About Keegan Resources Inc.
Keegan is a gold development company focussing on near term gold
production at its high grade multi-million ounce Esaase gold
project in Ghana. The Company offers investors the opportunity to
share ownership in the rapid exploration and development of high
quality pure gold assets. Keegan 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.
The Company 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.
Forward Looking and other Cautionary Information
Financial terms of the acquisition were not released but are not
material to the Company. 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.
Contacts: Keegan Resources Inc. Investor Relations 604-683-8193
or Toll Free: 1-800-863-8655 www.keeganresources.com
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