Abstract:Ayilixi iron deposit is located in the combination part of north edge of Qiangtang micro-plate in the South China plate and Mushitage block of Talimu plate. It occurred in metamorphic rocks of the Paleoproterozoic Buluokuole group. Its orebody were stratiform and layered type. Its natural type was magnetite ores, and belonged to "Anshan type" metamorphic iron deposit. Its controlling economic and basic reserves (122b) were 33.14 million tons, inferred intrinsic economic resources amount (333) was 733000t, predicted resources amount (334) was 7971 million tons. There were 400 million to 500 million tons of ore resources arounding the work region. Discovery, exploration and development of Ayilixi iron deposit have a great role in easing the lack of iron resource in Xinjiang Uygur Autonomous Region. In this paper, characteristics and occurrence of iron ore mineralization have been analyzed, and prospecting direction in this area has been put forward as well.