EVN, September 14, 2023 –Allied Gold approved a $500 million expansion plan for the Kurmuk gold project in Ethiopia, as reported by Mining Weekly.
The Kurmuk project, once a modest undertaking, is now poised to transform into a substantial gold mine, with a target to produce 240,000 ounces of gold annually. The company aims to keep the all-in-sustaining cost (AISC) per ounce below $950 to ensure the project’s economic viability. The strategic mine life, is projected to extend for an initial 15 years.
This expansion plan involves a pivotal upgrade of the processing plant’s capacity, with an increase from 4.4 million tonnes per year to a range between 5.4 million and 5.7 million tonnes annually.
In terms of production, the expanded project anticipates an average of nearly 275,000 ounces per year during the first four years, followed by an average of 240,000 ounces per year over its entire mine life. This marks a substantial boost compared to the original project, which would have yielded an average of 200,000 ounces per year.
Funding for the project’s development capital will be allocated from 2023 to 2026, with resources coming from available cash on hand and cash flows generated by producing mines. The first gold pour is anticipated to take place in the second quarter of 2026, marking a significant milestone.
In a noteworthy development, Allied Gold recently completed a substantial $267 million financing round, with a significant investment of $40 million from incoming management, including Chairman and CEO Peter Marrone himself, underlining their unwavering commitment to the project.
Allied Gold and Allied Merger Corp, an initiative led by Marrone and other former Yamana Gold executives, have successfully executed a business combination and reserve takeover transaction.
Marrone expressed his enthusiasm, stating, “The commencement of trading on the TSX marks the final step as we complete our transition to a public company and embark on our next phase of growth.”
He added, “Our goal is to evolve into a significant mid-tier next-generation gold producer and ultimately become a leading senior global gold producer,” illustrating a vision full of promise for the future.
