Allied Gold Energizes Power Line, Feeds First Ore to the Crushing Circuit as the Kurmuk Mine Progresses Toward Completion of Commissioning and Transitions to Operations
Kurmuk’s grid power start-up, ore stockpiling and first ore crushed move Allied Gold closer to commercial production in Ethiopia.
Rhea-AI Summary
Allied Gold (AAUC) reports key commissioning milestones at its Kurmuk Mine in Ethiopia as the project advances toward commercial operations.
The 88-kilometre, 132-kV power line to the national grid has been commissioned and energized, supplying power under a 20-year agreement at approximately US$0.04 per kilowatt-hour. First ore has been fed through the crushing circuit, with handover to the operations team underway, and ore introduction to the grinding circuit and first gold expected soon after. Mining is progressing with about one million tonnes of ore stockpiled, targeted to reach nearly 1.5 million tonnes, or three months of plant feed, ahead of full circuit commissioning.
Positive
- 20-year power agreement at approximately US$0.04/kWh supports expected low production costs
- 1 million tonnes of ore already stockpiled, targeting nearly 1.5 million tonnes before full commissioning
- 2.7 million ounces of Proven and Probable Mineral Reserves in initial Dish Mountain and Ashashire pits
- First full-year production guidance of 240,000–270,000 ounces of gold
- Second-year production expected at approximately 300,000 ounces of gold
- First four years expected to average about 290,000 ounces of annual gold production
- Initial strategic target mine life of 15 years with production averaging at least 240,000 ounces per year
Negative
- None.
News Explained
Kurmuk remains short of commercial production, with final testing underway and a disclosed first-full-year target of 240,000–270,000 ounces.
The disclosure leaves Kurmuk in commissioning and operational handover: grid power is available, but the crushing circuit is only being handed over and remaining electrical, instrumentation, and systems testing continues.
The company describes a planned mine profile of 2.7 million ounces of Proven and Probable Mineral Reserves, first-full-year production guidance of 240,000 to 270,000 ounces, and an initial strategic target mine life of 15 years.
Commercial production has not yet been reported; the stated next milestones are first ore entering the grinding circuit in the coming weeks and first gold shortly thereafter.
Key Figures
- Power rate
- approximately US$0.04 per kilowatt-hour
- 20-year power purchase agreement
- Power purchase agreement
- 20 years
- Ethiopian Electric Power
- Current ore stockpile
- approximately 1 million tonnes
- Ahead of full circuit commissioning
- Planned ore stockpile
- nearly 1.5 million tonnes
- Planned level during ramp-up
- Proven and Probable Mineral Reserves
- 2.7 million ounces
- Dish Mountain and Ashashire initial ore sources
- First full-year production
- 240,000 to 270,000 ounces
- Production guidance
- Following-year production
- approximately 300,000 ounces
- Expected production
- Strategic target mine life
- 15 years
- Initial mine-life target
Historical Context
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Kurmuk remained on budget and schedule, with production targets disclosed.
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Kurmuk remained on budget and schedule for start-up with production targets disclosed.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
power purchase agreement financial
mineral reserves technical
qualified person regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
TORONTO, Sept. 17, 2026 (GLOBE NEWSWIRE) -- Allied Gold Corporation (TSX: AAUC; NYSE: AAUC) (“Allied” or the “Company”) is pleased to provide an update on the Kurmuk Mine (the “Kurmuk Mine”) in Ethiopia. As the Kurmuk Mine completes commissioning and transitions toward operations, it will become one of the Company’s premier gold mines, generating significant growth in gold production and cash flows. Connection to the national Ethiopian electrical grid, a significant milestone, has been completed, and first ore has been fed through the crushing circuit of the processing facility. Mining continues to advance as planned, with ore stockpiles building to support ramp-up to commercial production.
Highlights
- Grid connection. The power line connecting the Kurmuk Mine to the Ethiopian electrical grid has been successfully commissioned and energized, thereby marking a significant milestone toward the start of operations.
- First ore crushed. Earlier this month, first ore was delivered to the commissioned crushing circuit, thereby marking another important milestone for the Kurmuk Mine’s operational readiness.
- Mining and ore stockpiling. Mining activities continue to advance well and ore stockpiles are on track to support plant feed during ramp-up to commercial production.
- Commissioning progressing across the site. The Company expects to introduce first ore to the grinding circuit in the coming weeks with first gold to follow soon thereafter.
Power and Energization
The 88-kilometre-long power line connecting the Kurmuk Mine to the Ethiopian electrical grid has been successfully commissioned and energized, and is now supplying sufficient power to complete commissioning and advance ramp-up of operations. The 132-kV power line and related substations were completed by Ethiopian Electric Power (“EEP”) and provide the Company with electrical power at a fixed rate of approximately US
First Ore Through the Crushing Circuit
Earlier this month, first ore was fed through the crushing circuit. The full handover of the crushing circuit from the commissioning team to the operations team is now underway. The Company expects to introduce ore to the grinding and downstream circuits as commissioning of those systems is progressively completed.
Mining and Ore Stockpiling
Mining activities continue to advance well with ore stockpiles being established to support plant feed during ramp-up to commercial production and, in addition, exposed mineralized zones from mining show expected widths and grades. As of today, the Company is on track with mining activities and has established an ore stockpile of approximately one million tonnes, and stockpiled ore levels are planned to continue increasing to nearly 1.5 million tonnes, or three months of ore feed ahead of full circuit commissioning, which, together with ore available from ongoing mining activities, will provide ample ore feed to support a controlled, steady ramp-up into commercial production. As previously disclosed, mining will initially come from the Dish Mountain and Ashashire open pits which contain the entire current inventory of Mineral Resources and Mineral Reserves. Exploration efforts to expand mineral inventories and extend mine life by extending known deposits and discovering and developing new ore sources within the property are also progressing.
Commissioning Progressing Across Site
Individual systems are being completed, tested, verified against design parameters, and handed over from the construction and commissioning team to the operations team. The balance of commissioning activities continues to advance across the site, with the remaining electrical, instrumentation and systems testing well underway. The Company expects to introduce first ore to the grinding circuit soon with first gold expected shortly thereafter.
About the Kurmuk Mine
The Kurmuk Mine, located in the Benishangul-Gumuz region of western Ethiopia, represents the cornerstone of Allied Gold's organic growth strategy. The mine is a conventional truck-and-shovel open-pit operation from two initial open pits with an equally conventional CIL processing plant. The mine currently contains 2.7 million ounces of Proven and Probable Mineral Reserves in Dish Mountain and Ashashire, which are the initial ore sources for production. Significant exploration opportunities across a prospective 1,450 km² land package are expected to increase the mineral inventories and mine life. Designed as a large-scale mining operation with access to low-cost grid power, the Kurmuk Mine is expected to become a significant contributor to Allied Gold's production and cash flows with production guidance of 240,000 to 270,000 ounces in its first full year and approximately 300,000 ounces the following year and production averaging at least 240,000 ounces per year for an initial strategic target mine life of 15 years. Over its first four years of operation, the mine is expected to average approximately 290,000 ounces of gold production annually at industry-leading costs, while ongoing optimization initiatives and significant exploration potential provide additional operational flexibility and long-term growth opportunities.
Qualified Person
Except as otherwise disclosed, all scientific and technical information contained in this press release has been reviewed and approved by Sébastien Bernier, P.Geo (Senior Vice President, Technical Services), a Qualified Person as defined by National Instrument 43-101.
About Allied Gold Corporation
Allied Gold is a Canadian-based gold producer with a significant growth profile and mineral endowment which operates a portfolio of three producing assets and development projects located in Côte d’Ivoire, Mali, and Ethiopia. Led by a team of mining executives with operational and development experience and proven success in creating value, Allied Gold aspires to become a mid-tier next-generation gold producer in Africa and ultimately a leading senior global gold producer.
For further information, please contact:
Allied Gold Corporation
Royal Bank Plaza, North Tower
200 Bay Street, Suite 2200
Toronto, Ontario M5J 2J3 Canada
Email: ir@alliedgold.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS
This press release contains “forward-looking information” under applicable Canadian securities legislation. Forward-looking statements are characterized by words such as “plan”, “expect”, “target” and other similar words. Except for statements of historical fact, information contained herein constitutes forward-looking information, including, but not limited to, statements related to the sequence, scope and completion of commissioning, ramp-up to commercial production and handover; the expectation that Kurmuk will become one of the Company’s premier gold mines, generating significant growth in gold production and cash flows; completion of EEP works, availability of grid power and the benefits of the power purchase agreement; ore availability for commissioning and ramp-up; the timing of first ore to the mill and first gold; the production outlook; future processing capacity and annual and mine-life gold production; expected industry-leading cost performance, exploration and expansion plans; the generation of cash flow, profitability and shareholder returns and improvements in the scale and quality of the Company’s portfolio; and the Company’s growth and shareholder-value objectives.
The material assumptions underlying these statements include timely completion of remaining commissioning and utility works and receipt of required approvals; sufficient and reliable grid power, water and other infrastructure; the availability of suitable ore at planned grades and metallurgical characteristics; plant performance, availability and recovery consistent with the mine plan; the availability of personnel, contractors, equipment, consumables and funding; and no material adverse changes in commodity prices, exchange rates, costs, or the regulatory, security and operating environment. Actual results may differ materially if these assumptions are not met.
Forward-looking information is based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and is inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include, without limitation, delays or interruptions in power supply and utility works; commissioning delays, equipment failures and an inability to sustain intended throughput or recovery; and risks and uncertainties related to the Company’s ability to meet its expansion and operational optimization goals, including production increases; risks relating to operating in emerging markets, particularly Africa, including risk of government expropriation or nationalization of mining operations; health, safety and environmental risks and hazards to which the Company’s operations are subject; counterparty, credit, liquidity and interest rate risks and access to financing; uncertainty in the estimation of Mineral Reserves and Mineral Resources; Allied’s ability to replace and expand Mineral Resources and Mineral Reserves; risks relating to partial ownerships and/or joint ventures at the Company’s operations; reliance on the Company’s existing infrastructure and supply chains at the Company’s operating mines; risks relating to the acquisition, holding and renewal of title to mining rights and permits, and changes to the mining legislative and regulatory regimes in the Company’s operating jurisdictions; the Company’s compliance with anti-corruption laws; title disputes or claims; risks relating to the termination of mining rights; risks relating to security and human rights; risks associated with processing and metallurgical recoveries; risks related to enforcing legal rights in foreign jurisdictions; risks related to the Company’s ability to service its debt obligations; fluctuating currency exchange rates (including the US Dollar, Euro, West African CFA Franc and Ethiopian Birr exchange rates); timing and possible outcome of pending and outstanding litigation and labour disputes; taxation risks; scrutiny from non-governmental organizations; labour and employment relations; repatriation of funds from foreign subsidiaries; the impact of global financial, economic and political conditions, global liquidity, interest rates, inflation and other factors on the Company’s results of operations and market price of the Company’s common shares; risks associated with financial projections; force majeure events; transactions that may result in dilution to common shares; future sales of common shares by existing shareholders; the Company’s dependence on key management personnel and executives; possible conflicts of interest of directors and officers of the Company; the reliability of the Company’s disclosure and internal controls; compliance with international ESG disclosure standards and best practices; vulnerability of information systems including cyber attacks; as well as those risk factors discussed or referred to in the Company’s current Annual Information Form and Form 40-F available under its profile on SEDAR+ at www.sedarplus.ca and www.sec.gov.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that could cause actions, events or results to not be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purpose of providing investors with information concerning the Company’s expectations and plans relating to its Kurmuk Mine, and may not be appropriate for other purposes.
CAUTIONARY NOTE TO U.S. INVESTORS REGARDING ESTIMATES OF MEASURED, INDICATED AND INFERRED MINERAL RESOURCES
This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ in certain material respects from the disclosure requirements promulgated by the U.S. Securities and Exchange Commission (the “SEC”). For example, the terms “mineral reserve”, “proven mineral reserve”, “probable mineral reserve”, “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are Canadian mining terms as defined in accordance with Canadian NI 43-101 and CIM Standards. These definitions differ from the definitions in the disclosure requirements promulgated by the SEC. Accordingly, information contained in this press release may not be comparable to similar information made public by U.S. companies reporting pursuant to SEC disclosure requirements.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What recent infrastructure milestone has Kurmuk achieved for its power supply?
The Kurmuk Mine is now connected to the Ethiopian national grid via an 88-kilometre, 132-kV power line that has been commissioned and energized. This line, built by Ethiopian Electric Power, supplies sufficient electricity to complete commissioning and support ramp-up of operations under a 20-year power purchase agreement at approximately US$0.04 per kilowatt-hour.
What is the current status of ore processing at the Kurmuk Mine?
First ore has been fed through the commissioned crushing circuit, and the crushing circuit handover from the commissioning team to the operations team is underway. Allied Gold expects to introduce ore to the grinding and downstream circuits as their commissioning is progressively completed, with first gold expected shortly after ore enters the grinding circuit.
How is mining and ore stockpiling progressing at Kurmuk?
Mining activities are advancing as planned, initially from the Dish Mountain and Ashashire open pits. Allied Gold has established an ore stockpile of approximately one million tonnes and plans to increase stockpiled ore to nearly 1.5 million tonnes, equivalent to about three months of ore feed ahead of full circuit commissioning, to support a controlled ramp-up to commercial production.
What are the longer-term production expectations for the Kurmuk Mine?
The Kurmuk Mine is expected to produce 240,000 to 270,000 ounces of gold in its first full year of operations and approximately 300,000 ounces in the following year. Over the first four years, production is expected to average about 290,000 ounces annually, and for an initial strategic target mine life of 15 years, production is expected to average at least 240,000 ounces per year.
What is the scale and resource base of the Kurmuk Mine?
Kurmuk is a conventional truck-and-shovel open-pit operation with a CIL processing plant, located in the Benishangul-Gumuz region of western Ethiopia. It currently contains 2.7 million ounces of Proven and Probable Mineral Reserves in Dish Mountain and Ashashire, and sits within a 1,450 km² land package where exploration is ongoing to increase mineral inventories and extend mine life.