Allied Gold begins wet commissioning at Kurmuk ahead of first gold
The Ethiopian mine targets 25,000 to 35,000 ounces in November and December, with commercial production expected in the same period.
Mara Quinlan
Allied Gold Corporation TSEAAUC NYSEAAUC said on Thursday it has begun wet commissioning at Ethiopia's Kurmuk mine, targeting 25,000 to 35,000 gold ounces in November and December. Allied expects commercial production during that period, ahead of 240,000 to 270,000 ounces forecast for 2027.
Allied shares closed lower at C$28.27 in Toronto at 4:00 p.m. EDT on Oct. 28, according to TSEAAUC. That trading session preceded Thursday's update.
Allied said water transfer into the processing plant has started, allowing circuits to be wet-commissioned before ore feed. The grinding mill drives are energized, with testing and commissioning nearing completion.
"Ore is expected to be introduced into the circuit this week with first gold targeted soon thereafter," Allied said in the release.
The crushing circuit is operating and the crushed ore stockpile continues to grow. Mine and plant infrastructure is complete, including the water storage and tailings facilities, main access road and mining service areas.
Ore stockpiles are close to the planned level of approximately three months of plant feed ahead of the November ramp-up, Allied said. Mining grades are in line with expectations, providing feed for the transition from commissioning to commercial production.
The company had reported the first ore through the crushing circuit on Sept. 17, when it also confirmed that the mine's connection to Ethiopia's electrical grid had been commissioned and energized. The Sept. 17 release put the fixed power tariff at approximately US$0.04 per kilowatt-hour under a 20-year purchase agreement.
Kurmuk's first-quarter production is forecast at 55,000 to 65,000 ounces in 2027, with output increasing month by month. Allied expects approximately 300,000 ounces in 2028 and average annual production of about that level over the first four full years.
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The startup has moved beyond the August timing anticipated in Allied's Aug. 5 results, which expected first gold a few weeks after operations began. That release cited prior partial-year production guidance of 100,000 to 150,000 ounces for Kurmuk.
The August results also said Allied expected cash balances to increase through the remainder of 2026 as Kurmuk development spending declined and production began.
Allied also said it has reached an agreement with local stakeholders, including artisanal miners active in parts of its exploration licences, to explore new prospective areas cooperatively. It links that access and ongoing exploration to its objective of sustaining approximately 300,000 ounces annually beyond the first four years.
Allied is a Canadian-based gold producer with operating mines in Mali and Côte d'Ivoire and the Kurmuk development in Ethiopia.
Allied expects to release its third-quarter financial and operating results after market close on Nov. 4.
