Abstract: Xingyue area is located in north and east section of De'erbugan deep fracture, and its metallogenic conditions are very favorable. The area of Ergun River group exposed sporadically, having close relationship with gold anomaly. Adopting parameter statistics on raw data of the measuring elements from rock, soil and stream sediments both in and out of the area, and by comparing the relative abundance, the coefficient of variation and the enrichment factor, this paper analyzed the change of contents of each element in the formation, distribution and the relationship between elements. Combined with the special characteristics of regional natural landscape, the role the Ergun River group played in mineralization is analyzed as well. As gold-bearing geological bodies, epimetamorphic rock in Ergun River group is the source material of placer gold. Physical and chemical weathering under surface environment make the enrichment of placer gold possible. Abundant water currents provide hydrodynamic conditions for gold migration and screening. Wide circuitous valley offers a favorable sedimentary place for the formation of placer gold deposit.