Allied Gold Connects Kurmuk Mine To Ethiopian Grid And Crushes First Ore Ahead Of Commercial Production

Allied Gold Corporation (TSX:AAUC, NYSE:AAUC) ("Allied" or the "Company") is pleased to provide an update on the Kurmuk Mine (the "Kurmuk Mine") in Ethiopia. As the Kurmuk Mine completes commissioning and transitions toward operations, it will become one of the Company’s premier gold mines, generating significant growth in gold production and cash flows. Connection to the national Ethiopian electrical grid, a significant milestone, has been completed, and first ore has been fed through the crushing circuit of the processing facility. Mining continues to advance as planned, with ore stockpiles building to support ramp-up to commercial production.

Highlights

• Grid connection. The power line connecting the Kurmuk Mine to the Ethiopian electrical grid has been successfully commissioned and energized, thereby marking a significant milestone toward the start of operations.
• First ore crushed. Earlier this month, first ore was delivered to the commissioned crushing circuit, thereby marking another important milestone for the Kurmuk Mine’s operational readiness.
• Mining and ore stockpiling. Mining activities continue to advance well and ore stockpiles are on track to support plant feed during ramp-up to commercial production.
• Commissioning progressing across the site. The Company expects to introduce first ore to the grinding circuit in the coming weeks with first gold to follow soon thereafter.
  
  
  
   

Power and Energization

The 88-kilometre-long power line connecting the Kurmuk Mine to the Ethiopian electrical grid has been successfully commissioned and energized, and is now supplying sufficient power to complete commissioning and advance ramp-up of operations. The 132-kV power line and related substations were completed by Ethiopian Electric Power ("EEP") and provide the Company with electrical power at a fixed rate of approximately US$0.04 per kilowatt-hour, pursuant to a 20-year power purchase agreement with EEP, which supports the expected low production costs.

First Ore Through the Crushing Circuit

Earlier this month, first ore was fed through the crushing circuit. The full handover of the crushing circuit from the commissioning team to the operations team is now underway. The Company expects to introduce ore to the grinding and downstream circuits as commissioning of those systems is progressively completed.