United States Geological Survey Iraq Mining 2011 United States Geological Survey Iraq Minerals Project Greg Fernette, Jeff Doebrich and Michael Foose

USGS Iraq Minerals Project Objective: to promote economic development of the Iraqi mineral sector through technical assistance to Geosurv. Geosurv is a highly professional organization with qualified and competent personnel who has developed a vast archive of high quality information on the geology and mineral resources of Iraq. As a result the USGS was focused on modernization, training and testing of less newer exploration concepts. The project had four components: Laboratory Geophysics Mineral Resources Training

USGS Iraq Minerals Project – Laboratory Component Objective: technical assistance with modernization of Geosurv Laboratories. Work completed: Laboratory reviews by USGS staff in June 2009 and April 2010. Prepared recommendations for new equipment, LIMS and training. Training in Denver June 2011.

USGS Iraq Minerals Project – Geophysics Component Objective: Restoring a National Treasure through recovery of airborne geophysical data flown in 1975. Work Completed Data recovery. Staff Training.

USGS Iraq Minerals Project – Geophysics Component Airborne Surveys flown in 1975 data in 15 Blocks Survey lines @ 2 km Tie lines @ 10 km Data is stored on magnetic tapes archived by Geosurv Recovery contracted to Frontier Processing Company in Denver, Colorado.

USGS Iraq Minerals Project – Geophysics Component 99.99 % data recovered on 25 tapes. 99.96 % data recovered on 3 tapes. 73.02 % data recovered on Tape 508. Aeromagnetic data is of excellent quality and quantity Only Total Radiometric data could be recovered. Total radiometrics map. Reduced-to-pole magnetic (RTP) map.

USGS Iraq Minerals Project – Minerals Component Objective: to assist Geosurv with the promotion of mineral resource development in Iraq via topical mineral resource investigations and training. Map production and GIS. MVT investigation in Anbar Province. Anbar geochemical survey. Zagros Fold-Thrust Belt investigations. Training.

USGS Iraq Minerals Project – Minerals Component Map Production and GIS Map showing active mineral processing plants and quarries in Iraq. Prepared from data compiled by Mustafa and others of Geosurv.

USGS Iraq Minerals Project – Minerals Component Anbar MVT Investigation Dr. Tim Hayes of the USGS published a map highlighting areas with the base metals potential in sedimentary rocks in Saudi Arabia . The potential lead-zinc environments identified in Saudi Arabia extend into Iraq in the Rutba area. These areas are also the site of zinc geochemical anomalies identified in Geosurv soil surveys conducted in the early 1980’s.

USGS Iraq Minerals Project – Minerals Component Anbar Geochemical Survey Objective to test ideas concerning base-metals potential, and provide training in regional wadi sediment sampling and data interpretation. Work completed: Field training in Anbar 2010. More than 400 sediment samples collected by Geosurv in April-May 2011. Analyses completed by USGS in June 2011. Training in data interpretation in Denver July 2011.

USGS Iraq Minerals Project – Minerals Component Anbar Geochemical Survey Wadi sediment geochemical survey carried out by Geosurv in 2011. Analytical support provided by USGS.

USGS Iraq Minerals Project – Minerals Component Anbar Geochemical Survey Initial evaluation of results show a gold anomaly in the Ga’ara area north of Rutba.

USGS Iraq Minerals Project – Minerals Component Anbar Geochemical Survey Iron and heavy mineral rich beds in the Ga’ara Sandstone, the likely source of the gold anomaly. Geosurv field crew sediment sampling, Anbar Province, June 2011. Gold grains in the Ga’ara Sandstone. Mustafa and Tobia (2010)

USGS Iraq Minerals Project – Minerals Component Zagros Fold-Thrust Belt Investigations Objective to evaluate the potential for mineralization in the Zagros Fold-Thrust Belt, to provide training to Geosurv in the evaluation of mineralization in ophiolite sequences and related rocks. Work Completed: Field reconnaissance in April 2010. Field work (geologic examinations, geochemical sampling) and training June-July 2010. Analytical work March-April 2011.

USGS Iraq Minerals Project – Minerals Component Northern Iraq – Zagros Fold-Thrust Belt Mineral Potential Bard-i-Zard – listwaenite alteration reported. Possible gold mineralization. Spidareh – thrust zone intruded by granitic sills. Possible gold mineralization. Northern Thrust Zone – Numerous lead-zinc-barite occurrences in carbonate rocks. Marabasta – possible Sedex lead-zinc deposit. Most of the known metallic mineral occurrences in Iraq are located in northern Iraq in or near the Zagros Fold-Thrust Belt. Mawat ophiolite – known copper mineralization. Shalair Valley: part of the Sinandaj-Sirjan Zone which is highly mineralized in Iran.

USGS Iraq Minerals Project – Minerals Component Training Geochemical sampling techniques May 2010, Anbar Province, June-July 2010 Northern Iraq. Mineral exploration and geology June-July, Northern Iraq. Grade-tonnage estimation and reporting September 2010, Baghdad. Geophysical data processing and interpretation September 2010 Istanbul. Laboratory techniques and management June 2011, Denver. GIS, map preparation and geochemical data interpretation June-July 2011, Denver.

United States Geological Survey Iraq Minerals Project Concluding Remarks Mineral Investment is Broadly of Three Types Local – mainly construction materials and industrial minerals, large overall investment in low unit-value commodities often as a result of housing and infrastructure projects (e.g. mega- housing projects). Regional – often construction related and tied to real estate and infrastructure investment (e.g. KRG cement) but may also include other commodities (e.g. bentonite for oil and gas use). Foreign – focus on high unit value and/or large deposits, potential export commodities (dollar denominated) or that support existing investments; e.g. oil and gas.

Geology Determines Mineral Resources Iraq is in the northern Arabian Plate which determines the geologic provinces of the country.

Geologic environments in Iraq dictate that most mineral deposits are non-metallic.

Iraq Mineral Production 1999-2009 (USGS Minerals Yearbook) Commodity/Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Construction Materials Cement 2,000,000 181,834,000 55,901,000 17,500,000 18,000,000 18,500,000 19,500,000 21,440,000 8,500,000 Gravel NA 7,823,000 9,708,000 10,000,000 Industrial Minerals Bauxite 4,928 250 Bentonite 570 1,605 3,959 Clay - Common 1,019,000 1,777,000 2,283,000 Clay - Kaolin 3,545 1,524 1,980 Gypsum 349,000 347,000 1,364,000 Ironstone 40,000 3,000 Limestone 642,000 275,000 316,000 Phosphate Rock 220,000 200,000 100,000 532,000 90,000 30,000 10,000 Salt 300,000 203,000 50,000 153,000 109,000 113,000 Sand - Feldspathic 543 Sand - Standard 32 26 30 Sand - Silica Sulfur - Byproduct 2,000 1,000 20,000 Sulfur - Frasch 98,000 NA: Data not available. Mineral production in Iraq (like most countries) is dominated by construction materials.

Some Commodities Attractive for Investment in Iraq Sand and gravel, brick clay, cement – abundant and well documented by Geosurv. As these commodities are developed for local markets export demand may arise, especially for cement. Attractive to local and regional investors. Barite, bentonite and high purity silica sand to support the petroleum industry. Can be attractive to oil and gas companies already operating in Iraq, particularly regional companies. Phosphate. Iraq has very large deposits which could attract foreign investment.

Deposit Name Metric Tons Grade P205% Akashat 1,764,700,000 21.0 H3 332,100,000 17.9 Ethna 218,780,000 18.1 Swab 3,502,900,000 21.7

Iraq Phosphate Deposits – World Context Deposit Name Metric Tons Grade P205% Akashat 1,764,700,000 21.0 H3 332,100,000 17.9 Ethna 218,780,000 18.1 Swab 3,502,900,000 21.7 Grade-Tonnage Curves for Upwelling Type Phosphate Deposits (Cox and Singer, 1986)

Note that there is potential to add tonnage at higher grades (>25%). In addition the hanging wall of the deposit includes 4,268 million metric tons of limestone averaging 19 m thick 54% CaO, 0.24% MgO and 0.13% Fe2O3 which is suitable for cement raw material and other industrial uses. 3.5 Billion Tons Average grade 21% P2O5

Why invest in Iraqi phosphate? From White and Cordell (2010)

United States Geological Survey Iraq Minerals Project Thank You