TORONTO – Allied Gold Corporation (TSX: AAUC; NYSE: AAUC) has provided a construction and commissioning update for its Kurmuk Mine in Ethiopia, which is nearing production start-up.
The company said Kurmuk is central to its growth strategy, expected to deliver a significant increase in gold production at competitive operating costs while improving the scale and quality of its portfolio.
Key updates:
Mining and stockpiles on track: Mining is progressing as planned with grades in line with expectations. Ore stockpiles are now close to three months of plant feed, ahead of the ramp-up scheduled for November.
Crushing circuit operational: The crushing circuit is running and the crushed ore stockpile is building, providing flexibility for a smooth ramp-up. Associated process systems and supporting infrastructure are complete.
Wet commissioning underway: Water transfer from the main storage dam to the plant has started, allowing progressive wet commissioning and testing of the processing circuits. SAG and ball mill drives have been energized, with testing nearing completion.
First ore and gold: Introduction of ore into the circuit is expected this week, with first gold to follow shortly thereafter. All critical mine and plant infrastructure is complete, including the water storage facility, tailings storage facility, main access road and mining service areas.
Ramp-up outlook: Production is expected to build through November and December, with total output of 25,000 to 35,000 ounces anticipated in that period. Commercial production is expected to be achieved during this ramp-up phase.
For Q1 2027, the company expects sequential monthly growth, with quarterly production of 55,000 to 65,000 ounces and an average of around 20,000 ounces per month.
Full-year guidance for 2027 remains at 240,000 to 270,000 ounces, rising to approximately 300,000 ounces in 2028. Average annual production for the first four full years is projected at around 300,000 ounces.
Exploration and mine life extension: Exploration at Ashashire, Dish Mountain and the Tsenge Trend, reported on October 6, 2026, continues to support the goal of sustaining ∼300,000 ounces per year beyond the initial four years, while growing mineral inventory and mine life.
The company also announced an agreement with local stakeholders, including artisanal miners active in parts of the exploration licences, to cooperatively advance exploration into new prospective areas while supporting local communities. Allied said the agreement will help unlock new targets across the broader Kurmuk property.
The company said the combination of ongoing exploration within the mining licence and expanded access to new areas underpins its objective of establishing Kurmuk as a long-life, low-cost operation with sustained annual production.
