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Keegan Resources Inc. (TSX:KGN) announced a revised mineral resource estimate for its Esaase gold project in Ghana, West Africa. The company is basing the results on roughly 200,000 metres of RC drilling and 78,000 metres of diamond drilling over the past five years at Esaase.
Keegan Resources Inc. (TSX:KGN) announced a revised mineral resource estimate for its Esaase gold project in Ghana, West Africa. The company is basing the results on roughly 200,000 metres of RC drilling and 78,000 metres of diamond drilling over the past five years at Esaase.
Revised Esaase mineral resource estimate include:
- 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.
President and Chief Executive Officer of Keegan, Shawn Wallace, commented:
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.
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