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Exploration opportunities in Nigeria Barytes MINISTRY OF MINES AND STEEL DEVELOPMENT D N A F E AI C TH A E , P R N P D O A R Y G E IT S N S U MMSD

Barytes Exploration Opportunity in Nigeria

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Page 1: Barytes Exploration Opportunity in Nigeria

Exploration opportunities in Nigeria

Barytes

MINISTRY OF MINES AND STEEL DEVELOPMENT

DNA F EAI CTH AE, P RN P D OA RY G EIT SN SU

MMSD

Page 2: Barytes Exploration Opportunity in Nigeria

Exploration opportunities in Nigeria

Barytes

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Page 3: Barytes Exploration Opportunity in Nigeria

Nigeria lies approximately between latitudes 4°N and 14°N, and between longitudes 3°E and 15°E. Nigeria has

an estimated current population of about 140 million, making it the most populous country in Africa and the

tenth most populous in the world. The country's economy has witnessed increasing growth in recent years with

the Gross Domestic Product increased by 6.1% from 2006 to 2008.

Nigeria has a long, but discontinuous history of mining and the country was a prominent exporter of tin, columbite and

coal. Mining is administered through the Ministry of Mines and Steel Development, which is promoting private-sector led

development and has initiated deep and wide ranging reforms of the mining sector.

These include:

1. A new mineral policy which emphasises greater private sector participation in an environment of orderly and

sustainable development in the exploitation of solid minerals is already in the pipeline.

The main purpose of this new policy is to take full advantage of the increased international commodity prices and the

global resurgences of exploration activities and:

Achieve a substantial increase in GDP contribution by the minerals sector.

Generate quality geoscience data.

Formalise Artisanal and Small Scale Mining (ASM) operators.

Achieve poverty reduction through ASM operation.

Generate employment opportunity

Create wealth through value addition.

Increase capacity of mineral based industries.

Attract private investment capital.

2. Signing into law of a new Minerals and Mining Act,

2007 to ensure security of tenure, competitive fiscal terms and the encouragement of an industry led by private

investors

3. Establishment of the Mining Cadastre Office (MCO)

A body with delegated responsibility to administer mining titles “with integrity and in a transparent manner on a

‘first-come first-served' basis”.

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INTRODUCTION TO NIGERIA

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CONDUCIVE ENVIRONMENT

Certain basic facilities favourable for conducting business exist in the country.

These include

A fairly developed infrastructure such as road network, deep ocean ports and jetties.

Improved communication system

Supportive banking institutions

Relaxed foreign exchange for capital raising

Existing joint venture opportunities

A large community of skilled geoscientists and engineers

A commitment to privatization

Barytes occur in Nigeria as vein infilling materials

associated with lead - zinc lodes and veins in the both Pre

Cambrian basement and Cretaceous sedimentary rocks

of the lower and middle Benue valley. The mineral

commonly occurs as white, reddish brown and clear

varieties with specific gravity varying . between 3.5 - 4.4.

The width of the veins ranges from a few centimetres to 5.3

metres. Lengths of veins also vary from few metres - >

4500m.

Preliminary survey carried out by the Geological survey of Nigeria in 1959 put the estimated reserve at 41,000 tones for

the Benue valley deposits. Also the Nigerian Mining Corporation estimated the resource of 70,000 tonnes in the Azara

deposit in Nassarawa State. Recently the Nigerian Geological Survey Agency embarked on the evaluation of newly

reported deposits in i) Cross Rivers ii) Benue iii) Nassarawa iv)Plateau v)Taraba States. The inferred resource estimated

for four of the states (Benue, Cross River, Nassrawa and Taraba) where mining is considered viable is 21,123,913 metric

tons.

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BARYTES EXPLORATION IN NIGERIA

OCCURRENCES

Heap of barytes at Faya, Plateau State Nigeria

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Benue State

The barytes resource of Benue State is hosted in the igneous-metamorphic rocks of the Pre-Cambrian as well as in

sandstones and shale of the Benue trough sedimentary formations. Mineralization is in form of fissure filling with

hydrothermal solutions depositing barytes in fissures formed by the closing in of the Benue trough during the

Santoninan.

The mineral occurs as white, reddish-brown and clear varieties with SG varying between 3.7 and 4.4. Chemical analysis

show that most samples contain between 76-87% BaSO , impurities of between 5 and 21% Silica and up to 3% iron 4

oxide.

Veins exposed do not persist over long distances in the area and width of 3 meters and above are common.

The inferred resource of barytes for the State is 307,657 metric tons based on an average SG of 4.0 and depth of vein to

20 metres.

BARYTES OCCURRENCE IN BENUE STATE, NIGERIA

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Page 6: Barytes Exploration Opportunity in Nigeria

Cross River State

Barytes veins in Cross River State are hosted in both hard and soft rocks. Of the 35 mineralized locations in the State, 11

are in sedimentary areas. This study divided the mineralized areas into; North comprising of Obubra, Ikom and Yala LGA

and the south consisting of Biase and Yakkur LGA. Barytes is hosted more by sedimentary rocks in the north while in the

south only 2 out of 18 locations are in sedimentary rocks.

The veins width are often between 2.5 and 5.3 metres (veins with width less than 0.2 meters were not considered). SG

ranges between 3.5 and 4.4. Total vein length varied between 1,000 and 6,000 metres. Inferred Resource for the entire

State is 8,612,880 metric tons distributed almost evenly between north and south.

Resource extraction is easier in the northern zones as a result of soft host rocks. Resource estimate in this report is likely

to increase as new veins are located in the future.

The resource is hosted by assorted sedimentary rocks (shale, mudstones siltstones, limestones). The barytes occur in

form of veins having width varying between a few centimeters to 3.5 metres. Veins persist along strike for distances

varying between just under 1000 to over 4,000 metres.

Laboratory studies conducted on samples from the State show that Specific Gravity (SG) of mine materials varies

between 3.9 and 4.4. This is within specification of the American Petroleum Institute (API). However, some samples have

SG values of less than 3.6. Such samples are silica rich varieties not suitable for use unless beneficiated. The impurities

indicated by analytical data are Quartz, Celestite (SrSO ) and iron oxide. 4

The inferred resource of barytes in the State is 3,243,376 metric tons calculated using an average SG of 4.0 and a vein

depth projected to 20 metres.

Barytes resources in Taraba States are located in five LGAs; Sardauna, Karim Lamido, Yoro, Lau and Ibi. The resources

are hosted in porphyritic granites and fine grained sandstones. Vein lengths are persistent over distances varying from

3,500 to 5,000 metres and width from 3.5 to 5 meters. Impurities consist of Quartz and sulphide minerals such as galena

Nassarawa State

Taraba State

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The figure obtained for the inferred resource is 8,960,000 metric tons to depth of 20 metres. Quality of resource is good

with most SG values close to 4.2. Considering the size of individual veins, investment in heavy equipment to mine at

greater depth is considered worthwhile.

Most of the locations in the state previously reported to have barites mineralization were found to be veins of Calcite and

Celestite SrSO with lower SG values. The latter may be an impurity in the Barytes thus lowering the SG.4

The location with the best quality barites in the state is Faya where a prominent well developed vein was estimated to

contain about 500,000 metric tons of resource with SG varying between 4.0 and 4.2. Some sections reportedly contain

Fluorite as impurities. The vein is hosted by sandstones of the Keana Formation of Cenomanian age.

Available analytical data show that it contains very low Hg and Cd value making it very suitable for drilling offshore.

Plateau State

BARYTES OCCURRENCE IN PLATEAU STATE, NIGERIA

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Page 8: Barytes Exploration Opportunity in Nigeria

NEW DEVELOPMENTS AND EXPLORATION INFORMATION ON BARYTES MINERALIZATION IN NIGERIA

Recent investigation by the Nigerian Geological Survey Agency and private exploration/mining companies has

continued to shed more light on the endowments and the potentials of the country in barytes mineralization. Between the

years 2006 and 2008 the Nigerian Geological Survey Agency (NGSA) has carried out evaluation and assessment of key

commodities nationwide. Barytes is one of the strategic commodities given priority. Beyond the known areas of barytes

mineralization, some three other states (Adamawa, Gombe and Zamfara) with favourable geological setting for barytes

mineralization or proximal to the Benue trough system were considered in the evaluation.

Inferred resources of barytes in Nigeria by states

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Page 9: Barytes Exploration Opportunity in Nigeria

Adamawa State

Baryte occurrence in Adamawa State is notable around Gban and Mayo-Kpoki areas. The geology of the barytes is

associated with fissure and cavities infilling by hydrothermal fluids associated with faults and fracture zones of the Upper

Benue trough. .

The colour of the mineral vary from white to pink and some have vitreous luster with S.G. values varies between 4.0 and

4.36. The inferred resource of the state is 332,130 metric tons.

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Page 10: Barytes Exploration Opportunity in Nigeria

Gombe State

The mineral is being hosted in gneiss-migmatite complex and coarse sandstone of the Benue trough. The mineralized

areas in the state are Gombe and Liji hills located 10Km N.E of Gombe town.

The thicknesses of the veins vary between 0.3m and 1.2m and some reaching 1.5m and some can be traced along strike

for up to 400 m.

The colour of the barytes is creamy to grey white with specific gravity between 4.09 and 5.3. Gangue minerals

associated with the mineralization are fluorite, quartz and chalcopyrite. Major element analysis gives BaO content to be

between 45.00%- 59.5% .The inferred resource estimate for the two locations is 352,800 metric tonnes.

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Page 11: Barytes Exploration Opportunity in Nigeria

Zamfara State

The barytes in Zamfara state is extensive. Barytes mineralization in the state is linked to epigenetic hydrothermal fluids,

which leached barium from adjacent rocks and precipitated in the vein.

The vein deposits show great variations in their properties especially thickness. The veins have variable widths from a

few centimetres up to several metres (0.6m- 2m), and lengths >100m. Majority of veins have probably formed from rising

hydrothermal solution which precipitated the barytes in the veins.

Barytes occur in the following locations:

i. Dareta near Anka, Anka Local Government.

ii. Rekebu near Chafe, Chafe (Tsafe) Local Government.

iii. Yarkatsina (Gidan Saro) Bungudu Local Government.

iv. Tofa forest reserve, Gusau Local Government

The barytes are massive to granular with uneven fractures and the colour varies from white to the reddish brown type.

A barytes vein crossing a trench in Dareta

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Massive Barytes from Dareta

Granular barytes from Rekebu near Chafe

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EMERGING INVESTMENT OPPORTUNITIES

Investment opportunities abound in the following areas

1. Applying for mineral titles with a view of wholly owning the mining rights for the barytes deposit

2. Partnering with existing title holders for detailed exploration as consultants and specialists

3. Partnering with existing title holders in joint venture agreement to explore, mine and market the barytes

resources of areas of interest

4. Legal transaction in barytes won in quarries and operations for export

Barytes from Yarkatsina

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For Further Enquiries, Please Contact:

Director General

NIGERIAN GEOLOGICAL SURVEY AGENCY

31 Shettima Monguno Crescent

Behind Julius Berger Office, Utako District

P.M.B. 616, Abuja, Nigeria.

Email [email protected]

CUSTOMERS SERVICE CENTRE

NIGERIAN GEOLOGICAL SURVEY AGENCY

+234 (0) 8053000184, 234 (0) 8065901938

E-mail: [email protected]

[email protected]

Supported by

World Bank Assisted

SUSTAINABLE MANAGEMENT OF MINERAL RESOURCES PROJECT (SMMRP)

No 6, Marte Close,

Off Misau Crescent,

Garki II,

Abuja

MMSD 2010