Akobo Minerals Produces 12 kg of Gold in Ethiopia as Segele Mine Development Advances

Akobo Minerals has reported approximately 12 kilograms of gold production from its Segele underground mine in Ethiopia during October 2026, bringing cumulative output since the start of operations to approximately 181 kilograms. The latest production figures reflect continued mining and processing activities as the company advances underground infrastructure, prepares for deeper mining operations, and expands exploration across its surrounding gold prospects. Alongside ongoing development at Segele, Akobo Minerals has reported encouraging visible gold intersections at the nearby Gingibil exploration prospect, highlighting the potential for additional mineralisation within its Ethiopian project area.

During October, the Segele operation produced approximately 12 kilograms of doré gold, with processed material averaging a gold grade of 11 grams per tonne (g/t). Although this represents a lower grade than the mine's historical processing average, the company attributed the decline primarily to the treatment of lower-grade material generated during underground development activities, together with previously accumulated tailings. Since production commenced, Segele has achieved an average processed gold grade of approximately 22 g/t, indicating that the operation has historically handled significantly higher-grade material than that processed during October.

The variation in processed gold grades reflects the operational requirements of developing an underground gold mine while maintaining production. Mine development involves excavating shafts, access routes, and supporting infrastructure, activities that frequently generate mineralised material with lower gold concentrations than ore extracted from established production zones. Processing this material allows Akobo Minerals to recover available gold while advancing the infrastructure required to access deeper sections of the deposit. However, the proportion of development material entering the processing circuit can influence monthly gold output, recovered grades, and overall operating efficiency.

By the end of October, Akobo Minerals had accumulated a processing stockpile of approximately 1,100 tonnes, including around 800 tonnes of material originating from vertical shaft development. This inventory provides additional material for future processing activities while demonstrating the volume of rock being excavated as underground development progresses. The substantial contribution of shaft development material also illustrates how current mining activities remain closely linked to infrastructure construction rather than being exclusively focused on extracting higher-grade production ore.

Development of the Segele vertical shaft remains a central component of Akobo Minerals' strategy to establish more extensive underground mining operations. The company continued advancing the shaft despite challenging geological and ground conditions, which can complicate excavation, increase ground-support requirements, and affect development efficiency. Nevertheless, geological observations suggest that excavation may be approaching harder and more stable rock formations. Should these conditions continue, they could facilitate more predictable shaft development and improve the efficiency of future underground construction activities.

Akobo Minerals has also completed the blasting of a new underground safety recess designed to provide personnel with a protected area during shaft hoisting operations. Hoisting activities involve the vertical movement of equipment, excavated rock, and other materials through the mine shaft, making appropriate safety infrastructure essential for managing operational risks. The newly established recess represents an additional safety measure as underground activities expand and the mine progresses towards more complex development stages.

Looking ahead, Akobo Minerals expects to publish an updated mine development plan in December 2026. The anticipated plan could outline the expansion of underground operations to depths of approximately 200 metres, potentially providing a clearer framework for future mine access, extraction sequencing, infrastructure requirements, and production planning. Developing deeper underground infrastructure may also improve access to extensions of the existing mineralised system, although future mining activities will depend on geological conditions, engineering assessments, available funding, and the economic viability of the targeted ore zones.

In parallel with its underground development programme, the company is evaluating a potentially mineralised area located west of the existing Segele gold deposit. This work could help determine whether economically relevant gold-bearing structures extend beyond the currently defined deposit boundaries. Identifying additional mineralisation near existing mining infrastructure would be particularly significant because nearby discoveries may offer opportunities for future resource expansion without necessarily requiring the construction of entirely separate mining facilities. However, further geological investigation and technical assessment will be necessary before the potential of this area can be established.

Exploration activities at the nearby Gingibil prospect have also delivered encouraging preliminary geological observations. The first exploration drill hole intersected approximately 2.5 metres of quartz vein containing visible coarse-grained gold, providing direct evidence of gold mineralisation within the targeted geological structure. Quartz veins are commonly associated with hydrothermal gold systems, where mineral-rich fluids circulate through fractures in surrounding rocks and deposit gold and other minerals as geological conditions change. The identification of coarse-grained visible gold can indicate locally concentrated mineralisation, although its presence alone does not establish the average gold grade or commercial value of a deposit.

A second drill hole at Gingibil also intersected additional quartz vein intervals containing visible gold, strengthening the geological case for continued exploration. Nevertheless, laboratory assay results remain essential to determine the actual gold concentrations within the recovered drill samples. Visible gold can be distributed unevenly within mineralised structures, sometimes creating significant variations in measured grades between individual samples. Consequently, detailed analytical testing, additional drilling, and geological modelling will be required to assess the continuity, geometry, and potential economic significance of the Gingibil mineralised system.

Akobo Minerals intends to continue exploration drilling at Gingibil to investigate the lateral and vertical extent of the gold-bearing structures and determine whether the observed mineralisation forms part of a larger, continuous system. At Segele, the planned development of deeper underground infrastructure could also create opportunities to investigate mineralisation at greater depths. Together, these activities reflect a combined strategy of maintaining gold production, improving underground access, and investigating additional mineral resources that could potentially support longer-term mine development.

The latest developments at Segele and Gingibil underline the opportunities and operational challenges associated with advancing small-scale, high-grade underground gold projects in Ethiopia. While October's lower processed grade demonstrates the short-term production variability that can arise during mine development, cumulative output of approximately 181 kilograms indicates that Akobo Minerals has established an operating production base. Continued shaft advancement, improved underground access, and successful exploration could contribute to greater operational flexibility and potentially extend the project's future production prospects. For Ethiopia's mining industry, sustained progress at projects such as Segele could support local employment, specialised mining services, investment interest, and diversification of mineral production. However, the broader economic impact will depend on the company's ability to manage geological risks, demonstrate commercially viable resources, maintain operational efficiency, and translate encouraging exploration results into sustainable gold production.

Mini-Glossary

• Doré Gold: A partially refined gold product, typically containing gold, silver, and other metals, which requires further refining to achieve commercial purity.
• Gold Grade (g/t): The concentration of gold in mineralised material, expressed in grams of gold per tonne of rock.
• Vertical Shaft: A near-vertical underground excavation used to transport personnel, equipment, and materials and provide access to deeper mining levels.
• Tailings: Residual materials remaining after valuable minerals have been extracted from processed ore.
• Mineralisation: The natural geological process through which economically valuable minerals accumulate within rock formations.
• Quartz Vein: A body of quartz formed within fractures in rock, sometimes containing gold and other valuable minerals.
• Visible Gold: Gold particles that can be observed directly in rock or drill core without microscopic examination.
• Laboratory Assay: An analytical test used to determine the concentration of valuable metals within geological samples.
• Mine Development Plan: A technical framework outlining how underground infrastructure, mining access, and extraction activities will be organised.
• Mineral Resource: An identified concentration of minerals with reasonable prospects for eventual economic extraction, estimated using geological evidence and sampling.