Name of the Project
Kurmuk gold project.

Location
Benishangul Gumuz region of western Ethiopia.

Project Owner/s
International gold miner Allied Gold.

Project Description
Kurmuk has been designed as a two-phase project.

The Kurmuk development plan proposes the upgrading of the processing plant’s capacity from 4.4-million tonnes a year to 5.4-million to 5.7-million tonnes a year. This expansion uses major equipment already owned by the company.

The project aims to achieve an average gold production of about 290 000 oz/y over the first five years and sustain an average of more than 240 000 oz/y over a ten-year mine life.

Mining is planned as conventional shovel-truck openpit operations at Dish Mountain and Ashashire. Processing is designed as a conventional carbon-in-leach circuit and recoveries are expected to average 92% over the life-of-mine (LoM). 

Power is planned to be supplied by the Ethiopian grid, and Allied has secured a ten-year power purchase agreement, with an average cost of 4 cents per kWh, aligned with the objective to deliver significant production at industry-leading costs.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Total capital is estimated at $500-million.

Planned Start/End Date
First gold is expected in the second quarter of 2026.

Latest Developments
Allied Gold Corporation announced an overnight marketed offering of common shares of the company on October 16, to be offered through a short form prospectus supplement and to be filed in all the provinces of Canada pursuant to the company’s base shelf prospectus dated October 1, 2024.

The offering is expected to be completed following an underwriting agreement to be entered into between the company and a syndicate of underwriters. 

Allied Gold will offer 6.4-million shares at C$27.35 a share for total proceeds of C$175-million.

The company plans to use some of the net proceeds to modify the plant under development at Kurmuk to increase average processing capacity for higher levels of production, start the transition to owner mining at one or more of its operations, and for general corporate purposes.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Allied Gold, email IR@alliedgold.com.