Keegan Resources Inc. (KGN)

Keegan Resources Inc. (Keegan) is a junior gold company. The Company is engaged in the acquisition and exploration of resource properties. The properties of the Company are Esaase Gold Property and Asumura Gold Project. The Esaase project is located on the Asankrangwa gold belt in SW Ghana, 13 kilometers north east of Resolute's Obotan deposit. The property contains bulk mineable gold deposits hosted in deformed Birimian metasedimentary rocks containing sheeted and stockwork quartz veins. The Company owns 100% of two concessions with full mining leases; the Esaase Concession and the Jeni Concession. The Asumura Property is located in south west Ghana on the western boundary of the Sefwi-Bibiani belt. The deposit is 65 kilometers south west from Newmont’s Ahsfo deposits. The targets at Asumura are disseminated open pit gold deposits.

The stock price fell after a "financial correction", which may be a red flag or a buying opportunity. Small miners with reserves maybe takeover targets on a price pull back. I'm betting that this is a buying opportunity.

Gold and silver have taken a sudden drop during the past week. Many speculators are panicing and claiming that this is the end of the "commodity bubble". I don't think so. If you look at the fundamental reason behind the last 6 months rise in precious metals, you have to ask yourself....has anything changed? I don't think so. The Fed continues to pump liquidity into the market, the interest rate continues to decline, inflation continues to increase and the dollar continues to fall. That being said....if due to demand decreases oil drops sharply from here...there is a possibility that precious metals will follow. Precious metals will experience quite a bit of volatility and the gyrations may be tough to handle but I think due to the fundamentals that I mentioned above that a year from now precious metals will be much higher.