On the basis of collecting and studying ground magnetic datas in early period in iron-rich area in Laiwu city, combining with theory and practices of iron ore exploration in deep part in recent years, through the ground magnetic survey datas conduction, the second vertical derivative of ΔZ exception has been obtained in decomposition of magnetic anomalies and the delineation of the general distribution scope of magnetite in Laiwu city. Rather large hidden iron-rich body with great depth has been found in Shijiaquan area. It is preliminary estimated that the iron ore reserve is over thousands of tons. It will provide references for iron ore exploration in deep part.