Keegan Resources Inc. (TSX:KGN)(NYSE MKT:KGN)(NYSE Amex:KGN)
("Keegan" or the "Company") 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) 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 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.
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.
--------------------------------------------------------------
Gold Gold
Cut-Off Resource Tonnes Grade Ounces
Au g/t Category (Mt) (g/t) (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.
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.
Contacts: Keegan Resources Inc. 1.604.683.8193 or Toll Free:
1.800.863.8655 1.604.683.8194 (FAX)info@keeganresources.com
www.keeganresources.com
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