Abstract:The study area is located at the west of DongpingWenshang iron ore belt in western Shandong province. It is low magnetic anomaly area. By means of high magnetic measurement, Inaka Mi component magnetic measurement and drilling verification, one iron deposit has been found in low magnetic anomaly area. It is a banded iron formation (BIF) type iron deposit. The underlying strata in this area are mainly Shancaoyu formation in new Archean Taishan rock group. The lithology is biotite granulite, accompanying with magnetite quartzite and magnetite hornblende quartzite. Major mineral compositions are magnetite, pyrite and chalcopyrite. Shancaoyu formation is widely distributed in the study area. According to metallogenic epoch, ore bearing horizon, iron bearing formation and rock assemblage, combining with metallogenic regularity, the low and slow magnetic anomaly area with banded type distributed widely in Liangshan area is suitalbe location for searching for hideen iron ore bodies.