Allied GOLD Announces P Ositive Exploration Results at Kurmuk’S Tsenge GOLD Prospect and New Oxide Discoveries at Sadiola, Supporting the Company’S Objectives to Extend MINE Life and Increase Production
NEWS RELEASE
ALLIED GOLD ANNOUNCES P OSITIVE EXPLORATION RESULTS AT KURMUK’S TSENGE
GOLD PROSPECT AND NEW OXIDE DISCOVERIES AT SADIOLA, SUPPORTING THE
COMPANY’S OBJECTIVES TO EXTEND MINE LIFE AND INCREASE PRODUCTION
TORONTO, ON – April 10, 2024 ─ Allied Gold Corporation (TSX: AAUC) ("Allied" or the "Company") is
pleased to announce positive exploration results from the Tsenge gold prospect, the most advanced of
several high quality exploration targets at the Kurmuk Project (refer to Figure 1). These results are part of
a program that is expected to significantly increase the Mineral Resources and Mineral Reserves at
Kurmuk, aligning with the Company’s goal of achieving a minimum of five million ounces of gold in mineral
inventories at the project. Tsenge is strategically located along strike from the Ashashire deposit, which is
planned as one of the initial two open pits for development at the project alongside the Dish Mountain
deposit. Together, these initial planned pits contain 2.74 million ounces of gold in Proven and Probable
Mineral Reserves and Kurmuk currently contains a total of 3.12 million ounces of gold in Measured and
Indicated Resources and an additional 0.3 million ounces of gold in Inferred Resources . Significant
increases to these figures are expected through further exploration at Tsenge and other near mine targets.
The Kurmuk Project, currently in development and expected to enter production in the second quarter of
2026, is anticipated to have its mine life significantly extended by these multiple exploration targets, and in
particular by the Tsenge gold prospect.
Additionally, the Company is pleased to report positive exploration results at Sekekoto West (see Figures
2 and 3), which is one of the new significant targets at Sadiola and where ongoing exploration activities
continue to successfully uncover additional near-surface oxide gold mineralisation. These findings are set
to enhance production at existing operations and supplement future ore feed to Sadiola.
These achievements highlight Allied's commitment to creating value through focused exploration,
supported by this year’s budget of $32 million. The aim of this investment is to extend mine life, improve
production and margins, as the Company focuses on enhancing efficienc ies and profitability through the
development of the Kurmuk Project, the Sadiola Expansion and the optimization initiatives at its producing
assets.
Exploration Highlights:
• Kurmuk Project, Tsenge Prospect:
− Extended Mineralisation at Tsenge Ridge: Ongoing exploration has revealed significant
gold mineralisation along a 9-kilometer strike length (see Figure 4), validated through soil
sampling, geological mapping, and scout drilling. The Tsenge area (see Figure 5), one of
four prioritized areas for Mineral Resource expansion, continues to demonstrate prolific
geological potential.
− High Economic Potential: Initial drill results and channel sampling have indicated economic
thicknesses and grades of gold mineralisation in hard rock both at the surface and at least
up to 200 meters vertically below the outcrops.
− Confirming High -Grade Sources: These findings verify that the gold -in-soil anomalies
originate from significant gold grades exceeding 1.0 g/t Au in rock samples, aligning with the
successful exploration outcomes at Dish Mountain and Ashashire—the two initial open pits
that encompass all current Mineral Reserves. Exploration of high-priority targets has yielded
exceptional results to date, including a 24-meter intercept with a grade of over 3 g/t Au near
the surface in channel sample TSCH002.
− Enhancement of Mineral Resource Base: These results mark a critical step toward
defining a considerable orebody at Tsenge, supporting Allied Gold’s strategy to significantly
extend and improve Kurmuk’s production profile and augment Mineral Resources. Allied is
currently progressing the construction activities for the Project, anticipating commencement
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of production in mid-2026 after completing the planned $500 million capital investment. The
current mineral inventory supports a production rate that in the first years is expected to
exceed 290,000 ounces per year with a reserves-only mine life of approximately 10 years,
which is now expected to be extended as the Tsenge gold prospect and other exploration
projects continue to advance.
− Long-Term Production Outlook: These exploration successes underpin the Company’s
strategy to enhance Kurmuk’s existing Mineral Reserves and Mineral Resources to support
a strategic mine life of over 18 years, with annual gold production exceeding 250,000 ounces
at an AISC(1) below $950/oz.
• Robust Oxide Discovery at Sekekoto West in Support of Sadiola:
− Established Resource Base: Since acquiring the Sadiola Project in 2021, Allied has
identified over 15 million tonnes of economic oxide mineralisation within the near -mine
footprint, significantly bolstering the oxide resource base essential for the existing and
planned processing infrastructure.
− Continuous Exploration Efforts: Ongoing exploration activities, including at Diba,
Sekekoto West, FE4, and Tambali South, are critical parts of Allied's strategy to leverage the
existing resources and infrastructure to maximize production and cashflows in the short term.
− New Near -Mine Oxide Discovery at Sekekoto West: Drilling at Sekekoto West has
uncovered a new oxide deposit, set to contribute additional feed to the Sadiola plant. This
deposit, located 2 km south of the Sadiola Processing Plant, underscores the ongoing
potential for resource expansion within the mining license and covers a zone that has been
historically underexplored, presenting significant new opportunities for resource growth over
approximately 2 km of strike. Recent drilling has extended the known mineralisation by an
additional 100m to the north, with plans to test further northward extensions by another 300m
in Q2, aiming to uncover potential linkages and oxide mineralisation towards the FE3S rock
storage facilities.
− Strategic Corridor between Sekekoto and S12: The discovered corridor linking Sekekoto
to the high -grade S12 prospect represents a promising target for further oxide ore
discoveries. This corridor holds the potential to continue adding incremental higher-grade,
lower-cost oxide ore feed to the Sadiola mill, ensuring enhanced throughput and efficiency,
especially during Sadiola’s expansion . Allied’s current exploration model indicates the
potential for uncovering significant mineralisation between these two areas and in other
prospective areas across the Sadiola land package. This model is actively being tested, and
could substantially increase oxide gold ounces available for extraction. Exploration results to
date continue to corroborate the Company’s exploration model for Sadiola.
− Integrated Phased Expansion with Recovery Enhancement Strategy: Increasing the
oxide mineral inventory allows Sadiola to continue producing at elevated levels while
incurring lower near-term capital costs as it pursues an integrated expansion of its existing
processing infrastructure. With the addition of Diba and othe r oxide ore sources, Allied
expects to support production levels between 200,000 and 230,000 ounces per year over
the next two years at an attractive AISC(1), resulting in robust cash flows as it completes the
implementation the Phase 1 expansion by early 2026. Further additional oxide discoveries
could enhance the production profile of the Phase 1 expansion through 2028 meaningfully
impacting its cash flow and returns. Furthermore, the Phase 2 Expansion, which is planned
as a new processing plant to be built starting in late 2026 and dedicated to processing fresh
rock and oxides at a rate of up to 10 Mt per year and starting in 2029, is expected to increase
production to an average of 400,000 o unces per year for the first four years and 300,000
ounces per year on average for the mine's 19 -year life, with AISC (1) expected to be below
$1,000 per gold ounce. The discovery of additional economic oxide mineralisation has the
potential to improve upon these targets leveraging the installed processing capacity at
Sadiola. Concurrently, Allied is advancing metallurgical test work and studies aimed at
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improving metallurgical recoveries by over 10% through flotation and concentrate leaching
techniques. This initiative is set to significantly enhance the financial performance of the
Sadiola Project, reinforcing the company’s focus on operational excellence and long -term
value creation for stakeholders.
Tsenge Gold Prospect
The Tsenge gold prospect is located within the Proterozoic Kurmuk Greenstone Belt, part of the Western
Ethiopian Greenstone Belt. Positioned along strike from the Ashashire Gold Deposit—which contains over
1.4 Moz of gold at a grade of 1.61 g/t within 27.8 Mt in Proven and Probable Mineral Reserves—the prospect
is approximately 6 km southeast of the planned Kurmuk Project processing plant. Since 2022, Allied has
undertaken extensive prospecting at Tsenge, involving soil sampling, geological mapping, and cha nnel
sampling, along with the initiation of scout diamond core drilling consisting of 104 diamond core holes
spaced 200 meters apart to test the area thoroughly with the aim of extending mineralisation, confirming
high-grade sources of ore and ultimately the increased economic potential of the project. To date, 11 core
holes have been completed, primarily focused on the Porcupine target in the north of the Southern Sector,
south of Mestefinfin Hill, and at the Setota target in the far south of the Tsenge Ri dge line, separated by
some 2 km. These drillholes have the objective of testing the northern and southern extent of the alteration
system in this area (see Figures 6-8). During the development of drill access roads, exposures of the
mineralized shear zones were systematically sampled as a series of face channels, on a 1m basis, with
DGPS survey pickup of the sample positions. To date, 6 channels from TSCH001 to TSCH006 at the Setota
target have been completed for a total of 972m sampled, and assay results have been returned for
TSCH001 and TSCH002 (see Table 1). TSCH001 returned a single intersection and was sampled
predominantly in the hanging wall metavolcanics outside of the carbonate alteration zone. TSCH002 was
sampled across the mineralisation and produced significant intercepts which are presented in Table 2
below. The highest-grade intersections returned over 1m are 30.8g/t Au, 27.5g/t Au, 26.1g/t Au and 12.5g/t
Au and correspond to zones of swarms of extensional veining, with the broader 1 -2g/t Au zones
corresponding with a distinct chocolate brown oxidized zone after sulphide and carbonate alteration hosted
highly strained metasediments.
At the end of March, the 11 completed core holes totaled over 3,308 meters in depth, with significant
findings across multiple sections. Holes TSDD001-TSDD008, drilled across three section lines spaced at
200m, tested 600m of veining and carbonate alteration. Notably, drill hole TSDD001 yielded an intersection
of 4.5 meters at 1.62 g/t of gold from 146.39 meters with true thickness estimated at 15% of the drill hole
intersection, while hole TSDD002 on the same section intersected 3.51 meters at 0.51 g/t of gold from 159
meters (true thickness of 67% of the drill hole intersect), 13.57 meters at 1.14 g/t of gold from 204.43 meters
(true thickness of 95% of the drill hole intersect), and 6.00 meters at 0.77 g/t of gold from 256 meters (true
thickness of 95% of the drill hole intersect). Holes TSDD009-TSDD011 were drilled at the Setota target in
the south of the prospect. Assays were received for TSDD009, and significant intersections made ,
intersecting multiple zones. Selected highlights are as follows; 4.36m at 0.72g/t Au from 130.64m, 11.67m
at 0.91g/t Au from 139.47m, 3.66m at 0.85g/t Au from 216.75m, 3.57m at 0.65g/t Au from 216.75m, 3.57m
at 0.65g/t Au from 229.43m, and 3.53m at 0.77g/t Au, 6m at 0.81g/t Au from 271m, 5.82m at 0.62g/t Au
from 283.18m, and 3.5m at 0.91g/t Au from 296.5m (true thickness 64% of drillhole intersect). Assays for
subsequent holes are pending, promising further insights into this mineral-rich area. Table 2 presents the
drillhole ("DH") intersections , utilizes a 0.5 g/t of gold cut -off and ha s a maximum internal dilution of 2
meters.
Significance to Kurmuk: These initial results from channels and drillholes demonstrated broad gold
mineralisation with economic grades in hard rock at surface and at least up to 200m vertically below outcrop.
These results confirm that the gold-in-soil anomalism of greater than 100ppb Au is derived from significant
gold grades of greater than 1.0 g/t Au in rock, consistent with the Company’s experience at the Dish
Mountain and Ashashire gold deposits. Furthermore, drilling to date has intersected multiple zones on
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individual section lines, with continuity to be tested by further drilling. Initial results and ongoing mapping
from channel sampling show a 50 -meter-wide gold bearing zone with multiple individual drillhole
intersections of up to 12 meter true thickness near surface with grades over 1.0 g/t hereby confirming the
robust exploration model and the prospectivity of Tsenge. This positive development, considering the scale
of the anomaly defined on the Tsenge Ridge line —with the core anomaly co vering a strike of 5.4 km—
indicates a substantial mineralized zone which the Company continues to advance.
These positive exploration results at Tsenge not only support the potential for expanding the mineral
inventory at this target but also across the entire Kurmuk Project, where other similar targets and anomalies
have been identified. Allied Gold is applying the same proven and efficient exploration model to these areas,
to underpin an expanded, long -term production outlook based on an expanded mineral inventory . This
strategy aims to enhance the overall asset base of Allied Gold, aligning closely with the s trategic goal of
creating long-lasting value for its stakeholders and advancing towards the company’s target of achieving a
minimum of five million ounces of gold in mineral inventories at the Kurmuk Project.
Sekekoto West prospect
The Sekekoto West prospect is located within the Sadiola permitted mining area, some 6 km south-east of
the processing plant. Historical drilling identified weak oxide gold anomalism in reverse circulation drillholes
which were drilled on wide spaced lines, located 500m west of the historically mined Sekekoto oxide gold
deposit. Allied’s exploration team followed this up with two initial heel to toe RC fence drill lines completed
in early 2022, for 11 RC holes, with lines spaced at 200m (see Table 3). SARC5 62 intersected
mineralisation hosted in carbonate rock, and reported a significant intersection of 17m at 2.92g/t Au from
46m (true thickness of 26% of the drill hole intersect). Representing a steep dipping zone of high -grade
mineralisation in fresh rock. This initial drillhole intersection was very encouraging and was followed up with
4 subsequent phases of RC drill programs during 2023 and continued in 2024. These programs extended
the known strike of mineralisation and infilled on oxide intersections to a 25m spacing.
The most recent phase of drilling was in progress at the end of Q1 and included core tails to define fresh
rock mineralisation that occurs within a tectonic fault breccia with interstitial carbonate and sulphide
alteration. At end March, a total of 152 holes for 14,551m of RC and 1,816m of core drilling had been
completed. This work has allowed for an Inferred Resource to be estimated within a US$1,800 resource pit
optimisation to help guide further exploration work and planning. Assays are pending for holes drilled in Q1
2024.
Furthermore, recent drilling has extended the strike of known mineralisation for a further 100m to the north,
and a step out of a further 300m to the north has been designed for drilling in Q2. These results confirm the
opportunity to explore the space between the S12 high grade oxide deposit and historically known
mineralisation that exists under the FE3S rock storage facility, to better understand any linkages that may
exist, and the preservation of the oxide mineralisation with respect to the transported laterite cap. This area
covers approximately 2 km of strike that has been poorly tested by exploratory drilling to date and
represents an opportunity to incrementally build mineral resources for the Project.
Significance to Sadiola: Having defined an initial Mineral Resource at Sekekoto West and possessing the
prospect of extending new oxide mineralisation towards S12 for an additional nearly 2 km of strike, Allied
confirms the potential to continue adding incremental higher-grade, lower-cost oxide ore feed to the Sadiola
mill. This addition is expected to enhance near-term cash flows, production, and reduce costs. Furthermore,
other oxide targets remain on the Sadiola property, which the Company is actively advancing in 2024 and
2025.
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Upcoming Catalysts and Events
The Company has a series of notable upcoming events.
• Q1 2024 earnings – May 9, 2024
• Annual General Meeting – May 10, 2024, at 11:00 a.m. EST
• Exploration update – details on Oume exploration in Côte d'Ivoire coming in May
• Further updates on the development of Kurmuk
• Further updates on optimizations and improvements of existing operations
Allied Gold will release its first quarter 2024 operational and financial results after the market closes on
Thursday, May 9, 2024, Eastern Standard Time (“EST”). The Company will then host a conference call and
webcast to review the results on Friday, May 10, 2024, at 8:30 a.m. EST.
First Quarter 2024 Conference Call
Toll-free dial-in number (Canada/US): 1-800-898-3989
Local dial-in number: 416-406-0743
Toll Free (UK): 00-80042228835
Participant passcode: 5324345#
Webcast: https://alliedgold.com/investors/presentations
Conference Call Replay
Toll-free dial-in number (Canada/US): 1-800-408-3053
Local dial-in number: 905-694-9451
Passcode: 6354190#
The conference call replay will be available from 12:00 p.m. EST on May 10, 2024, until 11:59 p.m. EST on
June 9, 2024.
Table 1. TSCH001 and TSCH002 channel significant intercepts at 0. 5g/t Au cut -off, and 2m maximum
dilution.
Channel ID Au From (m) Au To (m) Au Width
(m) Au Grade (g/t) Au Intercept
TSCH001 14 19 5 1.34 5m at 1.34g/t Au
TSCH002
7 10 3 0.62 3.00m at 0.62g/t Au
14 19 5 1.22 5.00m at 1.22g/t Au
28 52 24 3.02 24.00m at 3.02g/t Au
56 57 1 0.38 1.00m at 0.38g/t Au
60 76 16 2.96 16.00m at 2.96g/t Au
80 106 26 2.48 26.00m at 2.48g/t Au
110 119 9 1.19 9.00m at 1.19g/t Au
125 129 4 0.32 4.00m at 0.32g/t Au
133 135 2 0.39 2.00m at 0.39g/t Au
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Table 2 – Tsenge Intersection Table, Kurmuk, Ethiopia
BHID Hole
Type
East North RL Azi Dip From (m) To (m) Width (m) Estimated True
Width (m)
Au0 5
Grade
Au0 5 Intercept Weathering
-55 146.39 150.89 4.5 0.68 1.62 4.50m at 1.62g/t Au TR/FR
154.91 155.75 0.84 0.48 0.56 0.84m at 0.56g/t Au TR
-55 9.15 10 0.85 0.57 1.66 0.85m at 1.66g/t Au TR
-55 12.5 13.47 0.97 0.65 1.62 0.97m at 1.62g/t Au TR
-55 21.6 22.21 0.61 0.41 0.62 0.61m at 0.62g/t Au TR
-55 56.63 57.18 0.55 0.37 0.5 0.55m at 0.50g/t Au FR
-55 110.22 110.72 0.5 0.34 0.72 0.50m at 0.72g/t Au FR
-55 128.02 128.79 0.77 0.52 0.7 0.77m at 0.70g/t Au FR
-55 133.41 134.46 1.05 0.70 0.55 1.05m at 0.55g/t Au FR
-55 139.61 142.5 2.89 1.94 0.66 2.89m at 0.66g/t Au FR
-55 151.54 153.43 1.89 1.27 1.29 1.89m at 1.29g/t Au FR
-55 159 162.51 3.51 2.35 0.51 3.51m at 0.51g/t Au FR
-55 204.43 218 13.57 12.89 1.14 13.57m at 1.14g/t Au FR
-55 256 262 6 5.70 0.77 6.00m at 0.77g/t Au TR/FR
-55 268.32 268.84 0.52 0.49 2.33 0.52m at 2.33g/t Au FR
-55 279 281 2 1.90 0.79 2.00m at 0.79g/t Au FR
TSDD003 DD 658127.89 1171257.48 1032.26 122 -50 108.64 109.33 0.69 0.44 0.79 0.69m at 0.79g/t Au FR
TSDD004 DD 658010.63 1171095.92 1039.34 120 -55 No significant Au
Intercepts
TSDD005 DD 658355.50 1171354.32 1080.19 120 -55 No significant Au
Intercepts
TSDD007 DD 658264.00 1171407.00 1058.00 120 -55 No significant Au
Intercepts
-50 130.64 135 4.36 2.80 0.72 4.36m at 0.72g/t Au FR
-50 139.47 151.14 11.67 7.50 0.91 11.67m at 0.91g/t Au TR/FR
-50 179 181.42 2.42 1.56 0.57 2.42m at 0.57g/t Au FR
-50 216.75 220.41 3.66 2.35 0.85 3.66m at 0.85g/t Au FR
-50 226 227 1 0.64 0.51 1.00m at 0.51g/t Au FR
-50 229.43 233 3.57 2.29 0.65 3.57m at 0.65g/t Au FR
-50 239.47 243 3.53 2.27 0.77 3.53m at 0.77g/t Au TR/FR
-50 246 247 1 0.64 0.59 1.00m at 0.59g/t Au FR
-50 253 255.78 2.78 1.79 0.58 2.78m at 0.58g/t Au TR/FR
-50 259.54 262 2.46 1.58 0.68 2.46m at 0.68g/t Au FR
-50 271 277 6 3.86 0.81 6.00m at 0.81g/t Au FR
-50 283.18 289 5.82 3.74 0.62 5.82m at 0.62g/t Au TR/FR
-50 296.5 300 3.5 2.25 0.91 3.50m at 0.91g/t Au FR
-50 359.3 360.25 0.95 0.61 0.5 0.95m at 0.50g/t Au FR
Note: Grid is WGS84_36N for all drill holes
120TSDD001 DD
120
TSDD002 DD 658191.94 1171218.63 1054.04 120
658129.00 1171257.00 1033.00
TSDD009 DD 657452.00 1170173.00 1112.00
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Table 3 – Sekekoto Intersection Table, Mali
Click here to see Table 3.
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Figure 1 – Kurmuk, Ethiopia