08:44 AM EDT, 06/26/2024 (MT Newswires) -- Allied Gold Corporation ( AAUCF ) , which fell 2.7% and nearer to 52 week lows yesterday, on Wednesday provided an update on the ongoing exploration and development activities at its Kurmuk Project in Ethiopia.

A statement said: "Significant exploration results continue to support the high probability of Mineral Reserves and Mineral Resource growth, indicating substantial upside potential. The project, which remains on track for first production in mid-2026, continues to make significant strides in both project execution and exploration activities aimed at increasing mineral inventories, extending mine life, and enhancing overall value and future returns to shareholders."

Among highlights, AAUC said recent "significant" exploration results at both Dish Mountain and Tsenge confirm the high prospectivity previously reported for the property and these near-mine targets. It added these results support its objective to deliver significant Mineral Reserves and Mineral Resource growth from areas that can extend and improve Kurmuk's initial mine life and production profile. This, in turn, helps to achieve the company's strategic goals, including reaching a minimum of five million ounces of gold in mineral inventories at the project, it noted

AAUC said cumulative exploration results at the Tsenge Project highlight the potential for significant additional economic mineralization within the project area, reinforcing Allied's vision that Kurmuk and the surrounding exploration leases represent the potential for a new gold mineral province in Western Ethiopia.

Also, AAUC said "key project advancements in recent months build upon the planning and preparation activities started in late 2023". It noted these include the progress of the Engineering, Procurement and Construction Management Early Works contract under DRA Global Limited, the ongoing procurement of long-lead items and services, including the ball mill in addition to the already owned SAG mill, and the tendering process for contract mining and bulk earthworks, among others.

Wednesday's statement noted the Kurmuk project is expected to achieve average annual gold production of over 290,000 ounces during the first five years and maintain production of over 240,000 oz per year for the Life of Mine at an AISC targeted below US$950 per oz and an initial 10-year mine life based solely on current Mineral Reserves.