Allied Gold Corporation has announced substantial progress in its exploration program at the Kurmuk gold mine located in western Ethiopia, revealing ambitious targets to significantly expand the project's mineral resources and production capacity.
Transformational Gold Project in Ethiopia
The Kurmuk development represents a transformational mining project situated within the metal-rich Arabian-Nubian Shield, approximately 500 kilometres from Ethiopia's capital, Addis Ababa. According to the company's latest update, Allied is targeting commencement of operations by mid-2026 with projected average production of approximately 290,000 gold ounces annually during the first four years of operation.
The company expects to maintain production at approximately 240,000 gold ounces per year thereafter while achieving industry-leading All-In Sustaining Costs below $950 per ounce. These projections are based solely on existing Mineral Reserves, with significant expansion potential identified through ongoing exploration activities.
Substantial Existing Resources and Expansion Targets
Kurmuk currently boasts impressive initial mineral inventories, including Proven and Probable Mineral Reserves of 2.7 million ounces and Measured and Indicated Mineral Resources totaling 3.1 million ounces. These resources are primarily contained within the Ashashire and Dish Mountain deposits, with multiple near-mine exploration targets identified for further development.
The company has established an ambitious five-year exploration goal to reach 5 million ounces of Mineral Resources at Kurmuk, representing an increase of over 1.5 million ounces beyond the current inventory. This includes targeting at least 0.5 million ounces of new Mineral Resources within 10 kilometres of the processing mill.
Strategic Exploration Objectives
Allied Gold's comprehensive exploration program focuses on several key objectives designed to maximize the value of the Kurmuk asset. The company aims to extend the mine life to a minimum of 15 years, significantly beyond the current 11 years supported by existing Mineral Reserves.
Additional priorities include sustaining the higher production levels expected during the initial four-year period throughout the entire mine life, refining resource models ahead of production commencement in mid-2026, and leveraging the expanded 6.4 Mtpa processing capacity to potentially increase annual production above 300,000 ounces.
Recent drilling results have been particularly encouraging, with areas of higher-grade material located closer to surface than anticipated. The company has committed approximately $8 million for exploration activities in the current year, with similar expenditure levels expected for ongoing mineral inventory expansion.
This exploration update represents the second of three planned releases from Allied Gold, with a subsequent report covering the company's Côte d'Ivoire assets expected in early 2026.
