The study area is located about 30km northwest of Kashmar, southwest of Keriz village and east of Siah Kuh mine. Based on field and mineralogical studies, the rocks are mainly polutonic, sub-volcanic and volcanic, aged Eocene. The carbonate unit, with Permian age, is exposed extensivelly in the area. The mineralization in the area appears as veins, lenses, massive and dissiminated forms. Vein and lens type mineralization are related to the fault zones.The main mineralization in the area is magnetite, which occurs mostly as veins, lenses and massive. Dissiminated forms are less abundant. Other mineral veins and lenses in the area are specularite, chalcopyrite, pyrite, hematite, malachite, quartz and carbonate. Weathering of hypogen sulfide minerals has generated huge surficial amounts of secondry minerals such of malachite. Tectonically, there are three types of fault in the area: normal, strike slip and thrust, trending mainly northwest-southeast. The vein mineralization- trend is the same as fault- trend.The strike slip faults have been responsible mostly in providing suitable spaces for the uplift and porefluid filling. The magnetite has formed hydrothermally in contact with limestone and intrusive bodies. The existence of copper positive anomalies, I type granitoides, as well as fault mineralization may be considered as an evidence to prove that the iron oxide deposit in the area is a member of Fe-oxide type.