Xinhe iron deposit is located in middle part of Changyi Laizhou iron metallogenic belt in Pingdu city. The iron deposit occurred in Palaeoproterozoic Xiaosong formation of Fenzishan group. Three magnet ore bodies have been circled totally. Ore bodies are quartz magnetite, and belong to sedimentary metamorphic type. The orebearing layers have specialization. Magnetic anomaly is considered as prospecting criteria. Through comprehensive analysis and research, it is regarded that iron metallogenic belt has a good prospecting potentiality in this area.