Potouqing fault is the northeast section of ZhaoyuanPingdu fault belt. It is the first order orecontrolling fault in this area. Through discussion on geological characteristics of Shuiwangzhuang mine and summary of orecontrolling characteristics in deep part of Potouqing fault, it is proved that ore bodies are strictly controlled by tectonic alteration belt in this area; newly found No. ② alteration zone superimposed with Potouqing structural alteration zone, and formed a tectonic alteration zone vertically with the thickness of 700m. Fractural surface which is symboled by gray and black fault gouge developed in No.② alteration zone with obvious zonation. Phyllic rock mass fragmentation is in the center of this alteration zone. This belt is stabe with large alteration scale. Continuity of orecontrolling bodies is good, and ore bodies in deep part are not closed along the tilt direction. There are great deep prospecting prospects in this area.