Wednesday, 6th February 2008 (2245 views)

Keegan Resources has announced that new drilling at the Esaase gold project in south-west Ghana has extended the southern gold zone at the site.

Results from recent drilling include 34 metres of 1.85 g/t gold and 43 metres of 1.67 g/t gold, the company said. Another hole found 75 metres of 1.06 g/t gold.

The results extend the current mineralisation at Esaase to 250 metres down dip and it remains open both down dip and along strike.

Keegan says it has now moved its exploration rig north of the previously identified Main zone to test new targets.

The company's president and chief executive Dan McCoy said he was pleased with the growth of the Esaase deposit and was very positive about the new targets.

"With the second drill rig in place we will now be able to rapidly step-out and expand the deposit while we complete infill drilling on the area outlined in last year's resource calculation," he said.

He added that Esaase had a "good chance" of developing in a large, bulk-gold mining operation.

Esaase is located on the Asankrangwa gold belt, 13 kilometres north-east of the three million-ounce Obotan deposit.

 

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