Canadian mining company Allied Gold Corporation has achieved a significant milestone with the first gold pour at its Kurmuk Gold Mine in western Ethiopia. This marks the transition of the project from a greenfield development into an operating mine. The company announced this development on November 9, 2026, highlighting it as a major step forward for the project, which is set to become its newest producing asset and lowest-cost operation.
The successful completion of the initial gold pour at Kurmuk was attributed to the joint efforts of local and international staff, as well as support from government officials. The project is considered crucial for Ethiopia's ambition to establish a modern mining industry, with Kurmuk being one of the first large-scale mechanized mines in the country. Located in the Benishangul-Gumuz region near the Sudanese border, the project is seen as a bellwether for foreign direct investment in Ethiopian mining.
Allied Gold consolidated its ownership of the Kurmuk project to 93 percent in September 2023. The company's subsidiary, Kurmuk Gold Mine PLC, secured a 20-year power purchase agreement with Ethiopian Electric Power in August 2024 to supply hydroelectric power. The deposit is situated within the highly prospective Arabian-Nubian Shield. Following the initial gold pour, Allied Gold is preparing to scale up production toward full commercial operations by the end of 2026.
The company expects to complete final power infrastructure installations and fully mobilize its haulage fleet during November 2026. Commercial production is targeted by the end of 2026, with the mine expected to reach its designed operating capacity in early 2027. Recovery rates are projected to improve steadily through the end of 2026. Kurmuk is targeting between 25,000 and 35,000 ounces of gold in 2026.
Production at Kurmuk is forecast to rise to 55,000 to 65,000 ounces in the first quarter of 2027, reaching 240,000 to 270,000 ounces for the full year. Allied Gold projects annual output from Kurmuk to reach 300,000 ounces by 2028, averaging 300,000 ounces annually over its first four years and 240,000 ounces per year over the total life of the mine.
Exploration teams are continuing near-surface drilling at nearby targets, including Ashashire, Dish Mountain, and the Tsenge Trend, to extend the mine's operational lifespan. The company projects consolidated production across its portfolio to reach between 400,000 and 435,000 ounces in 2026, rising to between 615,000 and 670,000 ounces in 2027—a 54 percent surge over its 2026 midpoint.
Beyond 2027, Allied Gold aims to hit 800,000 ounces annually by 2029, aided by an expansion at its Sadiola mine in Mali. The progress at Kurmuk and future expansions are part of the company's strategy to increase its production significantly in the coming years.
Key points
- The Kurmuk Gold Mine in Ethiopia has started production and aims for commercial operations by the end of 2026.
- The mine is expected to produce between 240,000 to 270,000 ounces of gold in 2027.
- Allied Gold projects annual output from Kurmuk to reach 300,000 ounces by 2028.
