Gold deposit in Osun state worth $5bn, says geologist

The gold deposit in Osun state is worth about $5 billion in today’s price, according to a research finding by Olugbenga Akindeji Okunlola, a professor of geology at the University of Ibadan. 

At the current CBN rate, $5 billion is equal to N1.5 trillion — whereas checks by TheCable revealed that for the whole of 2016, Osun state collected N62 billion in federation allocation and recorded an internally generated revenue of N8.88 billion.

Okunlola, who is also the president of the Geological Society of Africa (GSAF), was speaking at the 427th inaugural lecture of the University of Ibadan on Thursday.

His lecture was entitled “Riches Beneath Our Feet: Mineral Endowment and Sustainable Development of Nigeria”.

He said Iperindo in Ilesha, Osun state, has a proven reserve of one million ounces “in a 1km² area up to a shallow 100m depth, comprising a series of gold bearing (Gold-quartz-carbonate) veins localised by subsidiary faults, hosted within biotite gneiss and mica schist. Grade ranges between 1–23.6g/ton. Currently, this deposit is worth over $1 billion”.

Iperindo is one of the clusters of seven gold deposits around Ilesha, he added.

“The worth of the Ilesha gold belt occurrences could be in the range of $3.1 to $5 billion at current price regime… Nigeria might well be the new frontier in the coming years for gold exploration in West Africa,” he said.

Okunlola further said that in Zamfara state, “two old gold mines are most important within Maru Schist belt. The Duki mine mineralisation made up of gold-quartz veins continues for over 1km of strike length. The other gold mine around Mararaba is a 300m long system”.

Gold Occurrences in Nigeria

Source: NIMAMOP (1999); MMSD (2008); Okunlola (2013)

Okunkola noted that out of the over 2000 mineral species known, “only about 200 are of economic value out of which Nigeria could boast of about 44 at different levels of commercialisation potential”.

He spoke extensively on the “enormous endowment, riches and untapped potentials of Nigerian mineral wealth”.

OTHER KEY QUOTES FROM THE LECTURE

On cement…

“Nigeria currently boasts of limestone, marble in commercial occurrences in about 124 locations in 25 states. The cement story of Nigeria is one of the pleasant success stories of our nation state. In the last twenty years, over 10 new cement factories of varied sizes have been built; not only meeting the over 12m tons demands for the local consump-tion but also, in 2016, about 400,000 tons of cement was exported. The industries created over 5,000 additional jobs in 5 years.

“Cement consumption is generally considered one of the best indicators of the growth of the GDP of a country, as it is one of the most essential materials for infrastructural development. The main raw materials are calcite, limestone, marble, gypsum and lateritic clays. Combined estimated tonnage resources of the limestone/marble for cement manufacture in Nigeria is about 15 billion tons. This could support about 30 cement factories supplying at current demand rates, provide needed raw material in excess of 100yrs with 50,000 direct jobs and estimated 300,000 indirect jobs and along the cement value chain of over 1 million jobs.”

On steel and energy industry…

“The strength of a nation is most times measured by the robustness of her steel and energy industry. Nigeria still spends over 3 billion dollars importing steel products into the country annually, despite the availability of major raw materials for such manufacture which are iron ore, coking coal, limestone, dolomite, bauxite and refractories for the production of iron and steel products. The main raw material is the iron ore.

“Estimates of resources from detailed exploration over the years (NSRMEA 2006; MMSD 2006; Okunlola and Soetan 2006; Okunlola 2007) suggest a resource base of about 5 billion tons. Kotonkarfi and Agbaja deposits alone account for about 2 billion tons and Itakpe about 100 million tons. Nigeria, with the endowment of all the raw materials for the steel manufacture (save coking coal) has no business importing a single ton of steel. Ajaokuta steel complex can employ primarily and as off shoots, lots of the young engineers (mechanical and metallurgical) that Nigeria has produced in the last decade, if operational.

“Nigeria’s gemstone endowment is by far the largest in West Africa in terms of varieties and occurrence (Okunlola and Ogedengbe 2003). The potentials of vibrant local lapidiary industry is very bright, although most gems from Nigeria are exported. This should be one of the ‘low hanging fruits’ for quick economic gains and rapid employment generation. About fifteen different varieties of gemstones occur in Nigeria along a 500km long stretch from Ijebu Ode to south of Plateau around Akwanga and for about 400km wide from north east of  Kebbi to the areas around Igumale in Kogi State.

“Other notable geologic hosts are the newer basalts of anorogenic Younger Granite (Cerny 1991; Abaa 1990). Okunlola (1990, 1998, 2005 and 2013) mapped over 350 veins in the south-western part and central of Nigeria alone. The preponderance of these veins with many yet unknown, suggests a huge potential.”