Abstract: The Xilekuola goldmine of Fuyun County is located in the middle of the metallogenic belt consisted of Zhaheba-Aermantai gold, copper, chromium, iron and other metals. Gold ore bodies occur in the northwest trending structural alteration zone, where the mineralization geological conditions are very favorable, but prospecting results are poor. Through analyzing the regional geological setting, geological characteristics, mineralized alteration and geochemistry characteristics, ore-controlling factors of the deposit were summed up and compared with the Dunbasitao external gold deposit of Xinjiang Qinghe County. It is believed that the Xilekuola goldmine is a tectonic altered rock type gold deposit controlled by structure, strata and medium-acid dyke. Lower Devonian Tuoranggekuduke group tuffaceous rocks are the main ore source layers and the mineralization is related with multi-stage dynamic hydrothermal activity, which developed from inner and outer contact zone of the diorite porphyrite. On both sides of ductile-brittle shear zone in the Zhaheba-aermantai fault, investigations conducted on favorable layer and development of dike area delineated by 1:100 000 and 1:50 000 geochemical anomalies are expected to find a small or medium-sized gold mines.