Addis Abeba — Akobo Minerals has announced that it has hit a gold ore body underground at the Segele mine in Gambella region after 13 years of exploration.

In a statement sent to Addis Standard the Scandinavian-based Ethiopian gold exploration and boutique mining said the achievement marks a significant milestone in the company's history, making it "one of few mining companies that have successfully navigated the path from exploration to mining"

According to the statement, the Segele mine which is located in Dima district of Anuak zone of Gambella region, is one of the world's highest concentrations of gold resources, with an average grade of 22.7 grams of gold per ton of ore. "This high grade translates to remarkably low operating costs, especially noteworthy given the current gold price close to $2,000/oz," it added.

"After first encountering the mineralization in the early part of 2020 and now finally hitting this unique discovery underground, it is a significant moment for our organization and all our supporters out there," the statement quoted Jørgen Evjen, CEO of Akobo Minerals as saying.

The company is set to commence production from the pilot plant, while the commissioning of the main plant will kick off as soon as it extracts meaningful material with gold from the mine. In March the company announced that it has intersected visible gold at 282 meters vertical depth, as well as seeing signs of further potential gold mineralization in several sections along this latest hole.