Allied Gold Identifies Five New Targets at Ethiopia’s Kurmuk Project

A view of the Kurmuk gold project area. Credit: Allied Gold.

Addis Ababa, Ethiopia — Allied Gold (TSX, NYSE: AAUC) has announced the discovery of five new target zones at its Kurmuk gold property in western Ethiopia, reinforcing the company’s ambitions to develop one of the region’s largest gold operations. The update comes as the miner’s stock surged to an all‑time high in Toronto trading.

Recent drilling returned strong intercepts, including 16.4 metres grading 13 grams per tonne (g/t) gold at the Tsenge–Hiccup Hill zone and 10.5 metres at 1.85 g/t gold from the Tsenge–Setota zone. Analysts described the results as “constructive,” highlighting the potential upside for the Kurmuk asset.

The new zones — Tsenge, Dul, Urchin, Western Prospects, and Northern Prospects — add to existing discoveries at Dish Mountain and Ashashire. Allied said these areas, with known mineralization and large gold‑in‑soil anomalies, could yield additional resources with further work.

Exploration crews have drilled 193 holes totaling more than 39,000 metres since mid‑2024. The program aims to extend Kurmuk’s mine life to at least 15 years, up from the current 11‑year reserve‑based estimate.

Located within the Arabian‑Nubian Shield, about 500 km northeast of Addis Ababa, Kurmuk is scheduled to begin open‑pit operations in mid‑2026. A central mill with 6.4 million tonnes annual capacity will process ore.

Management is targeting average output of 290,000 ounces annually during the first four years, with life‑of‑mine production averaging 240,000 ounces. All‑in sustaining costs are projected below $950 per ounce, with ambitions to lift annual output above 300,000 ounces over time.

Current reserves at Dish Mountain and Ashashire stand at 57.9 million measured and indicated tonnes grading 1.68 g/t gold, containing 3.12 million ounces. Inferred resources add another 311,000 ounces. A resource update is expected in early 2026, with Allied’s five‑year goal set at 5 million ounces.

The discoveries strengthen Ethiopia’s position as it prepares for its first commercial gold mine, supported by Wheaton’s $175 million streaming deal announced earlier this year.