Xinhe iron deposit locates in middle part of Laizhou-Anqiu iron ore belt in Pingdu city. The deposit occured in the second section of Fengzishan group. It belongs to sedimentary metamorphic type deposit. Through geological exploration, three iron ore bodies have been circled in the mine. On this basis, geological characteristics and prospecting perspective of this mine area have been analyzed. It will help the next step prospecting work.