It is located 40km northeastern Takab and 6km north of Zarshuran Village. Mineral area was preciously exploited for arsenic. Gold mineralization has occurred with As in carbonate rocks and the deposit is carline like deposit. Zonal lithology consists of upper Proterozoic metamorphic rocks including serpentinite schist, amphibolite and ultramafic rocks (Iman Khan complex), upper Proterozoic limestone (Chaldaq unit), which overlay the former, rocks gradually or by disconformity contact, succession of black coal bearing shale and limestone which contains As mineralization (Zarshuran Unit), Shale and gray sandstone of Barut, Zagoon and Laloon Formations, Oligomiocene Qom Formation, Upper Red Formation (sandstone, conglomerate, alluvial deposits).
Ore mineralization of Zarshuran Deposit has occurred in the contact of black coal bearing layer and old metamorphic rocks. The main ore body situated between the unconformity boundaries of lower Miocene with crystalline basement and some of the ore is available down into the basement rock. Gold has fine grain and scale form. Gold grade is 7-10 ppm which detailed exploration of the deposit displays 40 tons gold reserve. It seems that mineralization is epithermal type that is the result of young volcanic activities that mineralized the Chaldaq and Zarshuran units.