Allied Gold outlines exploration targets for transformational Ethiopia mine
Allied Gold Corp. [AAUC-TSX, AAUC-NYSE] has released an update on ongoing exploration and development activities at its Kurmuk mine in western Ethiopia. This is the second of three planned exploration updates, with further releases covering Allied’s Cote d’Ivoire assets expected in early 2026, the company said in a press release.
Kurmuk is a transformational development mine located within the metal-rich Arabian Nubian Shield, approximately 500 kilometres from the capital, Addis Ababa. Following an expected start of operations in mid-2026, Allied is targeting an annual production level of approximately 290,000 ounces of gold in the first five years and 240,000 ounces over a 10-year mine life. All-in sustaining costs are expected to be below US$950 per ounce.
With initial proven and probable reserves of 2.7 million ounces and measured and indicated resources of 3.1 million ounces contained within the Ashashire and Dish Mountain deposits, together with multiple near-mine exploration targets, Allied says it has undertaken an extensive exploration program designed to extend the mine live to 15 years, above the almost 11 years currently supported by mineral reserves. The program also aims to sustain higher production levels currently expected during the first four years for a much longer period – ideally across the full mine life. “Recent drilling has locally returned gold grades above reserve grade, with areas of higher-grade material located closer to surface, supporting this potential,’’ the company said in a press release.
Allied also plans to refine its resource models and extend mineralization at Ashashire and Dish Mountain ahead of the production startup in mid-2026.
The company aims to leverage the expanded 6.4 million tonnes per annum processing capacity in a move to potentially increase production above 300,000 ounces.
Meanwhile, Allied’s five-year exploration goal for Kurmuk is to reach five million ounces of mineral resources, representing a sequential target of over 1.5 million ounces of new mineral resources in addition to the current inventory. “The objective includes adding at least 500,000 ounces of new mineral resources within 10 kilometres of the mill, to sustain or exceed initial gold production levels of approximately 290,000 ounces annually,’’ the company said.
Allied is a Canadian gold producer. It operates a portfolio of three producing assets and development projects located in Cote d’Ivoire, Mali and Ethiopia. Allied has said it aspires to become a mid-tier next-generation gold producer in Africa and ultimately, a leading senior global gold producer.
Its portfolio includes the Sadiola mine in Mali where Allied is focusing on exploration and development of high-grade oxide deposits to maximize low-cost oxide feed and boost near term production and cash flows. Sadiola is expected to produce up to 205,000 ounces of gold this year at an all-in-sustaining cost of US$1,735 an ounce.
On Thursday, Allied Gold shares eased 0.48% or 13 cents to $26.84. The shares trade in a 52-week range of $28.76 and $9.48.
Resource World Magazine Inc. has prepared this editorial for general information purposes only and should not be considered a solicitation to buy or sell securities in the companies discussed herein. The information provided has been derived from sources believed to be reliable but cannot be guaranteed. This editorial does not take into account the readers investment criteria, investment expertise, financial condition, or financial goals of individual recipients and other concerns such as jurisdictional and/or legal restrictions that may exist for certain persons. Recipients should rely on their own due diligence and seek their own professional advice before investing.