Addis Ababa:Canadian mining firm Allied Gold Corporation has successfully poured its first gold at the Kurmuk Mine project, marking the transition of the site from a development project to an active producing mine.
According to Ethiopian Press Agency, the company announced that this milestone is significant for Ethiopia, as the Kurmuk Mine is set to become one of the country's largest and lowest-cost mechanized mining operations. The completion of the initial development phase was attributed to the efforts of both local Ethiopian and international teams, with recognition also given to the Ethiopian government for its pivotal role in facilitating the project.
The company has scheduled the completion of full power infrastructure installation and the mobilization of the main haulage fleet for later this month. With these developments, Allied Gold anticipates a swift operational ramp-up, aiming for commercial production by the end of 2026 and reaching full nameplate processing capacity by early 2027.
Gold recovery rates are expected to improve progressively through late 2026, with production targets set between 25,000 and 35,000 ounces for the remainder of 2026. This is projected to increase to between 55,000 and 65,000 ounces in the first quarter of 2027, with a full-year production range of 240,000 to 270,000 ounces in 2027, and approximately 300,000 ounces in 2028.
Over its initial four years, the Kurmuk mine is forecast to average 300,000 ounces annually, maintaining a life-of-mine average of 240,000 ounces per year. Ongoing exploration efforts aim to extend this production plateau, with the company's total consolidated output projected to reach between 400,000 and 435,000 ounces in 2026, and rising to between 615,000 and 670,000 ounces in 2027.
The development of the Kurmuk project is based on a formal 20-year mining agreement between Allied Gold Corporation and the Ministry of Mines of Ethiopia, which granted the company the necessary legal rights to advance the site into a large-scale industrial gold mine.
