Ethiopia: Kurmuk processes its first ore ahead of gold pour

The Kurmuk mine, located in the Ethiopian region of Benishangul-Gumuz, has begun processing its first ore through the crushing circuit and has been connected to the national power grid, Allied Gold announced on September 17. The site is preparing to produce its first gold in the coming weeks.

The 132 kV power line extends over 88 kilometers. Built by Ethiopian Electric Power, it now supplies the mine under a twenty-year power purchase agreement at approximately $0.04 per kilowatt-hour, according to the company.

Allied Gold reports that it has already stockpiled about one million tons of ore and aims for nearly 1.5 million tons, equivalent to about three months of feed for the plant. The ore is expected to be introduced into the grinding circuit in the coming weeks.

Kurmuk Gold Mine Plc has also informed the Ethiopian Ministry of Mines about the imminent first gold pour during hot testing. This step does not yet correspond to the official start of commercial production.

The initial processed resources will come from the open-pit mines of Dish Mountain and Ashashire. Allied Gold estimates the current proven and probable reserves at approximately 2.7 million ounces of gold.

For its first full year, the company anticipates production of 240,000 to 270,000 ounces, followed by around 300,000 ounces the following year. Its initial plan targets an average production of at least 240,000 ounces per year over a strategic duration of fifteen years.

The project also includes approximately 1,450 square kilometers of exploration permits surrounding the two initial deposits. Additional resources from future exploration campaigns are not included in the currently reported reserves.