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$500 Million Earmarked for a Two-Phase Development Plan for Ethiopian Kurmuk Gold Project

Kurmuk Gold Project will receive a total of $500 million which will be utilized in a two-phase development plan. The project which is now planned as a 240,000-oz/y gold mine with sustaining and running costs (AISC) also targeted under$950/oz. It also has a strategic mine that extends for an initial 15 years. Allied pointed out that they would capitalize on deploying major existing equipment owned by the company and also rely on contractor mining in order for the expanded Kurmuk Gold Project to be developed with the same capital needs and requirements as they had planned earlier.

The capital for the development of the Kurmuk Gold Project will be spent from the year 2023 to 2026 and will be financed by the cash that will be available on hand and the cash flows that will be acquired from the producing mines. The first gold pour is anticipated in the period of the second quarter of the year 2026.

Also read: Tulu Kapi Gold Project Implementation in Ethiopia Resumes

Kurmuk Gold Project Production Capacity

The expanded Kurmuk Gold Project is expected to produce 275,000 oz/y in the first four years of mining and roughly an average of 240,000 oz/y over the whole period of its mining life. This brings forth a favorable comparison to the original project, which would on the other side produce roughly 200,000 oz/y with similar costs of capital.

The expanded Kurmuk Gold Project will entail an expansion and upgrade of the processing plant capacity to between 5.4 to 5.7 million tonnes a year from 4.4 million tonnes.

Allied has just recently completed a $267 million funding which is inclusive of a major investment from the incoming administration at an amount of $40 million. All these were anchored by the CEO who is also the chairperson, Peter Marrone.

According to the chairperson, he stated that their main objective was to evolve into one mid-tier next-generation gold producer and eventually become among the leading producers of gold in the entire globe. The Allied board also got to approve other development projects such as expenses for an access road that will be essential in the transport of ore to the Sadiola plant which is expected to cost roughly $12 million in the years 2023 and 2024. Moreover, it also approved the first phase of expansion of Sadiola which will cost a total capital investment of $61.6 million and will be kicked of in the year 2024.

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