Allied Gold Reports Resource Growth and Mine Life Extension Potential from Exploration Program as the Kurmuk Mine Completes Commissioning and Begins Operations
TORONTO, Oct. 06, 2026 (GLOBE NEWSWIRE) -- Allied Gold Corporation (TSX: AAUC, NYSE: AAUC) (“Allied” or the “Company”) is pleased to provide an update on exploration at the Kurmuk Mine in western Ethiopia, highlighting exploration progress and the expansion of the mineralized zones within this highly prospective 30 km by 50 km gold camp. As commissioning and the start of operations at its Kurmuk Mine advance, with first ore to the grinding circuit expected imminently and first gold expected shortly thereafter, the Company is now focused on extending mine life and identifying additional higher-grade ore zones.
Exploration has initially focused on extensions to the two initial open pits, Ashashire and Dish Mountain, and on advancing nearby targets that could become additional mining areas providing further operational flexibility.
The Kurmuk Mine is planned as a conventional open-pit and agitated leaching operation with a life-of-mine production of at least 240,000 gold ounces per year, averaging approximately 300,000 ounces per year in the initial four years.
Highlights (*)
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* Intercepts in this release are reported as drilled lengths at a 0.3 g/t Au cut-off. Estimated true widths vary from 60% to 95% of drilled length, except for the Dul Mountain intercepts, where estimated true widths are unknown, and as otherwise stated for the Western Prospects.
Dish Mountain and Ashashire Growth
Exploration in 2026 has delivered down-dip and strike extensions to the mineralized zones at the Dish Mountain and Ashashire open pits, confirming the potential to expand the current Proven and Probable Mineral Reserves (1) of 2.7 million ounces. Dish Mountain continues to demonstrate incremental resource growth potential, with recent drilling successfully extending known gold-bearing zones and identifying favourable geological targets. The 1,600 m by 500 m deposit remains open at depth and laterally, offering opportunities to further expand the mineralized footprint and pit limits. Ashashire continues to deliver exceptional high-grade gold results, including 13.86 m at 10.07 g/t Au, with higher-grade mineralization extending approximately 750 m along strike below the current pit extents. The deposit remains open at depth and along strike, offering significant exploration upside and strong potential for both open-pit expansions and an underground Mineral Resource. Ongoing drilling and next year’s resource update position both Dish and Ashashire as contributors to future Mineral Resource growth and value creation.
High-grade Zones along the Tsenge Trend
The 9 km Tsenge Trend, which is significantly longer in strike length than either Ashashire or Dish Mountain, is emerging as a significant growth opportunity, with multiple high-grade gold discoveries highlighting substantial resource potential (see Figure 1). As the Kurmuk Mine initially takes advantage of higher-grade mining phases at Ashashire and Dish Mountain, thereby driving higher production in the initial years, these new high-grade zones are aligned with the exploration objective of finding and developing additional sources of higher-grade material to sustain higher production levels for longer. Resource modelling is progressing at the high-grade Hiccup Hill zone, the most advanced among similar high-grade targets along the Tsenge Trend, while positive results at Kiftet, Setota and Bumblebee point to multiple high-grade zones along Tsenge, thereby providing good potential for meaningful additional upside and operational flexibility to help sustain a long-term production profile of 300,000 ounces per year. An initial Mineral Resource estimate for Kiftet and Hiccup Hill is expected by the first half of 2027, along with exploration activities to confirm and extend the other high-grade zones along the trend.
Figure 1: Kurmuk Plan Map
Regional Exploration
During 2026, the Company began advancing work at regional targets at its Kurmuk Mine, obtaining encouraging high-grade results at Urchin and the Western Prospects, while other large, underexplored gold anomalies at Agu, Ahushu and Dul Mountain are planned to be advanced progressively starting in late 2026. Allied believes these targets are highly prospective, and the upcoming work provides opportunities to potentially define material new deposits within trucking distance to the processing plant, expanding the resource base which could potentially support additional mill feed; extend mine life; and support long-term strategic production targets.
Outlook
The focus for exploration at the Kurmuk Mine is evolving from deposit-scale zone definition and extension to nearby priority targets such as Tsenge, which are demonstrating near-term, higher-grade resource discovery potential. Going forward, exploration will continue to prioritize these near-term opportunities with increasing sequential focus on new targets, including Agu, Ahushu and Dul Mountain, along with continued evaluation of Urchin and Western Prospects. While advancing these exploration targets, initial drill target development data will be collected over the new Azali and Agazen targets located in the southern and northern portions of the property (see Figure 10 for location), respectively, and over the eastern half of the property, where limited exploration has been carried out.
Technical Discussion
Since October 2025, 149 holes totalling 28,003 m of drilling have been completed, with a focus on extending known zones at depth and along strike and on exploring new targets. Results are presented below for Dish Mountain and Ashashire, the Tsenge Trend and the regional targets shown in Figure 1.
Dish Mountain and Ashashire Extensions
At both Dish Mountain and Ashashire, drilling continues to intersect lateral and vertical extensions of the deposits, with the limits of the mineralized systems remaining open supporting the potential to expand the current pit limits and define an underground resource, particularly at Ashashire. Drilling continues at the south end of Ashashire and, at Dish Mountain, along the southwest side of the deposit and at deposit-proximal targets.
Dish Mountain
Figure 2: Dish Mountain Geology and 2026 Drilling
Figure 3: Dish Mountain Reference Section
Ashashire
Figure 4: Ashashire Plan View, Recent Results
Figure 5: Ashashire Cross-section
Tsenge Trend – High-Grade Zones Being Defined
The Tsenge Trend is a 9 km long gold-in-soil anomaly (Figure 6). Drilling and modelling to date indicate that high-grade zones appear to repeat along the trend. Hiccup Hill, at the south end of the trend, is the most advanced of these zones, with additional strong mineralization identified immediately to the north at Kiftet and Setota and, most recently, at Bumblebee.
Figure 6: Tsenge Trend, Southern Half, Drill and Trench Highlights
Figure 7: Hiccup Hill, Kiftet and Setota Detail Plan Map
Figure 8: Kiftet Zone Summary Section
Figure 9: Setota Summary Section
Other Targets – Regional Exploration
Exploration in 2027 will continue to expand outward from the core deposits to known targets across the property (Figures 1 and 10), with the support of an airborne magnetic survey, permission pending, planned for the fourth quarter of 2026.
Figure 10: Kurmuk Property Soil and Stream Sediment Compilation
Figure 11: Urchin Compilation Plan
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Figure 12: Western Prospects Compilation Plan
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Outlook and Next Steps
Gold mineralization requiring follow-up has been intersected at all targets drilled, namely Ashashire, Dish Mountain, Tsenge, Urchin and the Western Prospects. The near-term next steps of the program are summarized below:
The results to date and near-term planned activities demonstrate progress toward the Company's five-year exploration objectives for Kurmuk outlined in its November 2025 exploration update, including its objective of growing Mineral Resources to more than 5 Moz. The Company also continues to focus on identifying and developing higher-grade ore sources to increase operational flexibility, sustain higher production levels for longer and support its objective of extending mine life beyond 15 years.
Detailed Drill and Target Data
Detailed exploration results can be found via the following links.
Qualified Person
All scientific and technical information in this press release has been reviewed and approved by Don Dudek, P.Geo., Chief Exploration Officer, who is a Qualified Person as defined under National Instrument 43-101.
End Notes
Sampling and QA/QC Procedures
All exploration work at Kurmuk follows industry-standard sampling, assay, and QA/QC protocols. RC samples are collected at one-metre intervals and split using a 75:25 riffle splitter. Diamond core is cut in half and sampled systematically. Quality control samples (certified reference materials, blanks, and field duplicates) are inserted at a ratio of 1:20. A significant amount of the assay sample preparation is carried out at site with overflow samples directed to an ALS sample prep site in Addis Ababa. Samples are ground to 85% passing 75 µm. Re-assays, of an entire batch of 10 to 20 samples, are required when standards return >3SD outside of the expected results and if blanks contain >10x the detection limit.
All assays are performed externally at ALS using a 50 g fire assay. Laboratories are audited annually and maintain high standards of analytical accuracy. Data management and validation are maintained through the Company’s Fusion database platform.
Historic Dul Mountain trenching and drilling were carried out by Golden Star. Golden Star’s work was carried out in the early to mid-1990s, and while referenced in this release, Allied has not validated the assay results, which are only presented herein as added support for the prospectivity of the target. Trenching and drilling carried out over the Western Prospects were completed by AME, and, as with the Golden Star assay results, Allied has not validated these results.
About Allied Gold Corporation
Allied is a Canadian-based gold producer with a significant growth profile and mineral endowment, operating a portfolio of three producing assets and development projects located in Côte d’Ivoire, Mali, and Ethiopia. Led by a team of mining executives with operational and development experience and a proven track record of creating value, Allied is progressing through exploration, construction, and operational enhancements to become a mid-tier, next-generation gold producer in Africa, and ultimately, a leading senior global gold producer.
For further information, please contact:
Allied Gold Corporation
Royal Bank Plaza, North Tower
200 Bay Street, Suite 2200, Toronto, ON M5J 2J3 Canada
Email: ir@alliedgold.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS
This press release contains “forward-looking information” including “future oriented financial information” under applicable Canadian securities legislation. Except for statements of historical fact relating to the Company, information contained herein constitutes forward-looking information, including, but not limited to, any information as to the Company’s strategy, objectives, plans or future financial or operating performance. Forward-looking statements are characterized by words such as “plan”, “expect”, “budget”, “target”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words or negative versions thereof, or statements that certain events or conditions “may”, “will”, “should”, “would” or “could” occur. In particular, forward-looking information included in this press release includes, without limitation, statements with respect to:
Forward-looking information is based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and is inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the Company’s dependence on products produced from its key mining assets; fluctuating price of gold; risks relating to the exploration, development and operation of mineral properties, including but not limited to adverse environmental and climatic conditions, unusual and unexpected geologic conditions and equipment failures; risks relating to operating in emerging markets, particularly Africa, including risk of government expropriation or nationalization of mining operations; health, safety and environmental risks and hazards to which the Company’s operations are subject; the Company’s ability to maintain or increase present level of gold production; nature and climatic condition risks; counterparty, credit, liquidity and interest rate risks and access to financing; cost and availability of commodities; increases in costs of production, such as fuel, steel, power, labour and other consumables; risks associated with infectious diseases; uncertainty in the estimation of Mineral Reserves and Mineral Resources; the Company’s ability to replace and expand Mineral Resources and Mineral Reserves, as applicable, at its mines; factors that may affect the Company’s future production estimates, including but not limited to the quality of ore, production costs, infrastructure and availability of workforce and equipment; risks relating to partial ownerships and/or joint ventures at the Company’s operations; reliance on the Company’s existing infrastructure and supply chains at the Company’s operating mines; risks relating to the acquisition, holding and renewal of title to mining rights and permits, and changes to the mining legislative and regulatory regimes in the Company’s operating jurisdictions; limitations on insurance coverage; risks relating to illegal and artisanal mining; the Company’s compliance with anti-corruption laws; risks relating to the development, construction and start-up of new mines, including but not limited to the availability and performance of contractors and suppliers, the receipt of required governmental approvals and permits, and cost overruns; risks relating to acquisitions and divestures; title disputes or claims; risks relating to the termination of mining rights; risks relating to security and human rights; risks associated with processing and metallurgical recoveries; risks related to enforcing legal rights in foreign jurisdictions; competition in the precious metals mining industry; risks related to the Company’s ability to service its debt obligations; fluctuating currency exchange rates (including the US Dollar, Euro, West African CFA Franc and Ethiopian Birr exchange rates); the values of assets and liabilities based on projected future conditions and potential impairment charges; risks related to shareholder activism; timing and possible outcome of pending and outstanding litigation and labour disputes; risks related to the Company’s investments and use of derivatives; taxation risks; scrutiny from non-governmental organizations; labour and employment relations; risks related to third-party contractor arrangements; repatriation of funds from foreign subsidiaries; community relations; risks related to relying on local advisors and consultants in foreign jurisdictions; the impact of global financial, economic and political conditions, global liquidity, interest rates, inflation and other factors on the Company’s results of operations and market price of common shares; risks associated with financial projections; force majeure events; the Company’s plans with respect to dividend payment; transactions that may result in dilution to common shares; future sales of common shares by existing shareholders; the Company’s dependence on key management personnel and executives; possible conflicts of interest of directors and officers of the Company; the reliability of the Company’s disclosure and internal controls; compliance with international ESG disclosure standards and best practices; vulnerability of information systems including cyber attacks; as well as those risk factors discussed or referred to herein.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that could cause actions, events or results to not be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company’s expected financial and operational performance and results as at and for the periods ended on the dates presented in the Company’s plans and objectives and may not be appropriate for other purposes.
CAUTIONARY NOTE TO U.S. INVESTORS REGARDING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES
This press release uses the terms “Measured”, “Indicated” and “Inferred” Mineral Resources as defined in accordance with NI 43-101. United States readers are advised that while such terms are recognized and required by Canadian securities laws, the United States Securities and Exchange Commission does not recognize them. Under United States standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve calculation is made. United States readers are cautioned not to assume that all or any part of the mineral deposits in these categories will ever be converted into reserves. In addition, “Inferred Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Resource will ever be upgraded to a higher category. United States readers are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists or is economically or legally mineable.
CAUTIONARY NOTE TO U.S. INVESTORS REGARDING MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES
This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ in certain material respects from the disclosure requirements promulgated by the Securities and Exchange Commission (the “SEC”). For example, the terms “mineral reserve”, “proven mineral reserve”, “probable mineral reserve”, “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are Canadian mining terms as defined in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Standards"). These definitions differ from the definitions in the disclosure requirements promulgated by SEC. Accordingly, information contained in this press release may not be comparable to similar information made public by U.S. companies reporting pursuant to SEC disclosure requirements.
NOTES ON MINERAL RESERVES AND MINERAL RESOURCES
Mineral Resources are stated effective as at December 31, 2025 and March 31, 2026, and are estimated in accordance with the 2014 CIM Standards and 43-101. Where Mineral Resources are stated alongside Mineral Reserves, those Mineral Resources are inclusive of, and not in addition to, the stated Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Mineral Reserves are stated effective as at December 31, 2025 and March 31, 2026 and estimated in accordance with CIM Standards and NI 43-101. The Mineral Reserves:
Mineral Reserve and Mineral Resource estimates are shown on a 100% basis. Designated government entities and national minority shareholders hold the following interests in each of the mines: 20% of Sadiola, 35% of Korali-Sud, 10.1% of Bonikro and 15% of Agbaou. Only a portion of the government interests are carried. The Government of Ethiopia is entitled to a 7% equity participation in Kurmuk once the mine enters into commercial production and certain governmental commitments such as public road upgrades and installation of a power line are complete.
The Mineral Resource and Mineral Reserve estimates for each of the Company’s mineral properties have been approved by the qualified persons within the meaning of NI 43-101 as set forth below:
Mineral Reserves (Proven and Probable)
The following table sets forth the Mineral Reserve estimates for the Company’s mineral properties at December 31, 2025, unless otherwise noted.
*Bonikro and Agbaou as of March 31, 2026
Notes:
Sadiola Mine:
Kurmuk Project:
Bonikro Mine:
Agbaou Mine:
Mineral Resources (Measured, Indicated, Inferred)
The following table sets forth the Measured and Indicated Mineral Resource estimates (inclusive of Mineral Reserves) for the Company’s mineral properties at December 31, 2025, unless otherwise noted.
*Bonikro and Agbaou as of March 31, 2026
The following table sets forth the Inferred Mineral Resource estimates for the Company’s mineral properties at December 31, 2025, unless otherwise noted.
*Bonikro and Agbaou as of March 31, 2026
Notes:
Photos accompanying this announcement are available at:
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