Allied Gold Corp (TSE: AAUC) (NYSE: AAUC) (FRA: A240) soared to a new high Friday on the back of an exploration update that investors perceived favourably.
The gold mining company revealed Thursday that recent drilling has identified new target zones at its Kurmuk operation in Ethiopia. Allied reported intercepting 13 grams per tonne gold over a considerable 16.4 metres in the Tsenge prospects area. Additionally, the company cut a 10.5 metre length in another hole there with assays showing 1.85 g/t Au throughout.
The Tsenge Hiccup Hill zone and Tsenge Setota zone where this mineralization was discovered are a considerable distance south of the project’s primary area of operations.
“Significant additional targets located south of Ashashire [gold deposit] are expected to support the maintenance and expansion of current Mineral Resources and Mineral Reserves,” Allied explained in a press release about Kurmuk.
Kurmuk is currently in the final stages of development. Multiple camps and power lines are now set up, an airstrip and access roads have been constructed, a tailings storage dam is in place and a foundation for the process plant has been laid. The entire construction and development process will total around US$500 million.
Commercial production is expected to commence mid-way through 2026. The operation is slated to produce approximately 290,000 ounces of gold during its first four years followed by 240,000 per annum for 11 years. Kurmuk has two major deposits: Dish Mountain and Ashashire.
Allied is expecting analysts and investors to perform a site visit by the end of Q1. Kurmuk is set to become Ethiopia’s first large-scale commercial gold mine. The Ethiopian government has a 7 per cent stake in the project.
Another all-time closing high for the INK Canadian Insider Index up 32.9% so far in 2025.
Today’s leaders were Andean Precious Metals $APM +12.8% and Allied Gold $AAUC +9.2%.
Let the insiders guide you to opportunity. pic.twitter.com/QGPv3I9Alt
— Ted Dixon (@TedDixon) November 28, 2025
Read more: NevGold surges after closing C$10M financing deal
Allied’s revenue rises alongside peers and gold price
Intercepting favourable mineralization over significant lengths outside of the project area builds on 45.4 per cent year-over-year revenue growth during the past 12 months. Current gold pricing has been helping line the company’s pockets like many others in the industry.
Allied has been generating its revenue through gold produced at its three operational open pit mines in Mali and Côte d’Ivoire. In Q3, the gold producer churned out over 87,000 ounces. The company sold almost 93,000 ounces at an average realized price of US$3,457 per ounce.
Revenue rose by over 40 per cent year-over-year during Q3 to US$305.6 million while adjusted EBITDA shot up by 20 per cent.
Allied is on track to fulfill its 2025 production guidance of over 375,000 ounces. This year’s fourth quarter is expected to be particularly beneficial as the first phase of the Sadiola mine’s expansion is completed. Allied is projecting that ~120,000 ounces will be produced during the three-month period.
Allied celebrated completion of its listing on the New York Stock Exchange by ringing the opening bell in Manhattan on Jun. 18.
“Our listing was a major milestone in a journey defined by ambition, resilience, and purpose,” said Independent Director Jane Sadowsky at the time.
Year to date, Allied shares have risen by more than 144 per cent.
Despite the recent success, Allied operates in one of the world’s riskiest metal and mineral resource extraction regions. Eight out of 10 of the highest-risk mining jurisdictions are located within Africa. In 2024 and 2025 there were 30 attacks on mining personnel throughout Mali and Burkina Faso alone.
Militant violence and ethnic conflicts temporarily blocked Allied’s access to the Kurmuk operation on two occasions last year.
Read more: NevGold edges closer to gold-antimony resource with latest Limousine Butte results
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