New High Grade Targets Boost Confidence in Ethiopia’s Kurmuk Gold Project

Allied Gold’s latest exploration results at the Kurmuk gold project in western Ethiopia signal a major step forward in the company’s ambition to develop a large scale, long life gold operation. The discovery of at least five new high grade target areas, combined with strong drilling intercepts across multiple zones, has strengthened investor confidence and propelled the company’s stock to a record high. These developments underscore the growing geological potential of Kurmuk and highlight the momentum behind Allied’s broader growth strategy in East Africa.

Recent drilling has significantly expanded the project’s prospectivity, revealing new targets at Tsenge, Dul, Urchin, the Western Prospects and the Northern Prospects. At Tsenge’s Hiccup Hill zone, hole TSDD041 delivered a standout intercept of 16.4 metres grading 13 grams per tonne of gold from just 43 metres depth, indicating robust near surface mineralization that could enhance early mine scheduling. Additional drilling at Tsenge’s Setota area produced 10.5 metres at 1.85 grams per tonne gold from 161 metres, further confirming continuity of the mineralized system. Dish Mountain also returned encouraging results, including 12.6 metres at 2.93 grams per tonne gold and 9.3 metres at 3.35 grams per tonne gold, both at shallow depths that support the potential for cost efficient open pit extraction. Analysts have described these findings as constructive, noting that they materially increase the upside potential and resource confidence of the broader Kurmuk district.

Operational momentum continues to build, with 193 drill holes totalling 39,064 metres completed since mid 2024. Allied’s exploration strategy is designed to extend the current mine life estimate from 11 years to at least 15 years, supported by a planned resource update in early 2026 and an ambitious five year goal of achieving a 5 million ounce resource base. The project remains on track for open pit operations to commence in mid 2026, utilising a 6.4 million tonnes per year processing plant. Production forecasts include an average of 290,000 ounces of gold annually during the first four years and 240,000 ounces over the life of mine, with management aiming to surpass 300,000 ounces per year. Project economics appear strong, with all in sustaining costs expected to stay below 950 US dollars per ounce, which would position Kurmuk competitively within the global cost curve. Current measured and indicated resources stand at 3.12 million ounces, supported by an additional inferred 311,000 ounces, and the newly identified zones present clear opportunities for further expansion.

These exploration successes have also had an immediate impact on market sentiment. Allied’s shares climbed 9 percent to an all time high of 30 US dollars, lifting the company’s market value to 3.6 billion US dollars. With known mineralization and extensive gold in soil anomalies across the new target zones, the company anticipates that sustained exploration will continue to strengthen the project’s future growth profile. The combination of technical results, operational progress and market confidence places Kurmuk among the most promising emerging gold projects in Africa.

In the broader context of Africa’s mining industry, the progress at Kurmuk could reinforce Ethiopia’s position as an increasingly attractive destination for gold investment. The potential expansion of the resource base, the prospect of low cost production and the long life nature of the project may stimulate additional exploration interest in the region, encourage infrastructure development and contribute to the diversification of Ethiopia’s mineral economy. As Allied advances Kurmuk toward production, its success could have far reaching implications for investor appetite and competitiveness across the continent’s gold sector.

Mini Glossary

• Measured and indicated resources: Categories of mineral resources that have varying levels of geological confidence, used to estimate the quantity and quality of minerals in the ground.
• Inferred resources: Mineral resources estimated with lower geological confidence, requiring more drilling to upgrade their classification.
• All in sustaining costs (AISC): A comprehensive measure of the total cost to produce an ounce of gold, including operating costs, sustaining capital and other expenditures.
• Processing plant: An industrial facility where mined ore is crushed, milled and processed to extract valuable minerals.
• Mineralization: The occurrence of valuable minerals within rock, in concentrations that may be economically viable to mine.

Editor: Vural Burç ÇAKIR