The skarn type iron deposit discovered in Guodian area in Gaotang in Shandong province is located in QiheYucheng key exploration area in recent years. The single project reveales that the thickness of iron deposit is 87.31m. It has the characteristics of large thickness, high grade and deep burial. The research area is located in the deep coverage area of Quaternary and Neogene in northwest Shandong province. Effective information, such as mineral anomalies is difficult to extract, which restricts deep mineral exploration. Through analyzing geological and geophysical data in Guodian area and Luxi area, oreforming geological background, deposit characteristics, ore controlling factors, and prospecting indicators have been studied, and a mineralization model has been established. Rich iron ore bodies are mainly distributed in the contact zone between late Yanshan diorite and Ordovician Majiagou Group carbonate rocks. Thick and large ore bodies generally occur in the concave parts of rock mass and fanshaped areas at the edges of rock mass bulge. Comprehensive geophysical profile show the characteristics of high gravity and magnetism and concave contour lines of apparent resistivity. It will provide some references for conducting rich iron ore exploration work in the area and deep coverage areas.