Key points
- The power line linking Kurmuk to Ethiopia’s national electricity grid has been commissioned and energized.
- First ore passed through the crushing circuit earlier this month, and handover from the commissioning team to operations is under way.
- Allied Gold has stockpiled about 1 million metric tons of ore and plans to reach nearly 1.5 million tons, or three months of feed, before full circuit commissioning.
Allied Gold says its Kurmuk gold mine in Ethiopia has passed two major milestones on the road to production, with the power line connecting the site to the national electricity grid now commissioned and energized, and first ore fed through the crushing circuit.
The TSX-listed miner described the grid connection as a significant step toward the start of operations. Reliable grid power matters at a remote site like Kurmuk, because it lowers the cost and complexity of running a processing plant compared with diesel generation.
Earlier this month, the mine’s first ore went through the crushing circuit. As a result, the full handover of that circuit from the commissioning team to the operations team is now in progress.
Building the stockpile
Meanwhile, mining activities continue to advance. According to the company, exposed mineralized zones are showing the widths and grades it expected, and ore stockpiles are being built to feed the plant during ramp-up.
Allied Gold said it has established a stockpile of about 1 million metric tons so far. Moreover, it plans to keep growing that pile to nearly 1.5 million tons, the equivalent of three months of ore feed, before full circuit commissioning.
Combined with ore from ongoing mining, the company said, that reserve should provide ample feed for a controlled and steady ramp-up into commercial production.
Why it matters
The update signals that Kurmuk is moving from construction into operational readiness. First, power is in place. Second, crushing has started.
Third, the mine has a buffer of ore large enough to absorb the inevitable stops and starts of plant commissioning without starving the circuit.
Consequently, the focus now shifts to completing commissioning of the remaining process circuit and proving the plant can run at design rates.
Allied Gold has not given a revised date for first gold in this update, so investors will be watching for the next milestone report.
Ultimately, Kurmuk represents one of the few new large-scale gold mines to reach the production threshold in East Africa in recent years, and its progress will be closely followed as a test of Ethiopia’s ambitions to grow its mining sector.
