TSX-listed Allied Gold says mining operations at its Kurmuk gold mine in Ethiopia are progressing well, with mining grades in line with the company’s expectations, and ore stockpiles close to the planned level of about three months of plant feed ahead of the November ramp-up.

The company highlights that the Kurmuk gold mine represents the cornerstone of Allied’s production and cash flow growth, thereby delivering a significant increase in production at attractive operating costs while enhancing the scale, quality and longevity of the company’s portfolio.

Operationally, Allied has reported that the ore crushing process support systems and infrastructure are complete.

“The crushing circuit is operating well, and the crushed ore stockpile continues to build, providing operational flexibility for a smooth ramp-up,” the company says.

Further, wet commissioning is currently underway with the commencement of the water transfer from the main water storage dam into the processing plant, which will allow the processing circuits to be progressively wet-commissioned and tested ahead of the ore feed.

Ore is expected to be introduced into the circuit with first gold targeted soon thereafter, and in terms of the ramp-up production outlook, Allied says production is expected to increase through November and December, with total production of between 25 000 to 35 000 gold ounces and commercial production expected during this period.

The company adds that production in the first quarter of 2027 is expected to increase sequentially month by month, with quarterly production of 55 000 to 65 000 gold ounces and a monthly average production of about 20 000 gold ounces.

Notably, the Kurmuk mine production guidance for 2027 remains in the range of 240 000 and 270 000 gold ounces, with a production outlook of about 300 000 gold ounces in 2028.

Allied has also reached an agreement with local stakeholders, including artisanal miners active in specific parts of the company’s exploration licences.

The agreement is expected to drive the advancement of new targets across the broader Kurmuk property and contribute to Allied’s longer-term objectives for mineral recovery growth and mine life extension.

“Together, the ongoing exploration programme within the mining licence area and expanded access to prospective areas support Allied’s objective of establishing Kurmuk as a long-life gold mining operation with strong, sustained yearly production at attractive operating costs,” the company concludes.