Iamgold, Avnel form JV to develop permit in Mali

Avnel Gold Mining said it entered into a second joint price of zenith cone crusherventure agreement with Iamgold Corp to develop the Fougadian Exploration project in Mali, West Africa. Iamgold will have the right to acquire a 51 percent stake initially in the project upon establishing a qualifying mineral resource of not less than 250,000 ounces of gold, and will also fund the project entirely.

Avnel owns 90 percent in Fougadian Exploration permit. After Iamgold completes a pre-feasibility study the mid-tier gold company will have the right to increase its interest to 65 percent in the permit. The companies had earlier signed a joint venture deal for Kalana exploitation permit in Mali. In October, Avnel Gold said assay results related to its Kalana exploration project might be inaccurate, as SGS laboratory testing the drill samples did not follow certain protocols.