Geological and geochemical studies and experiments on mineralization indicate that the source bed of the La' erma gold deposit in the south subbelt of the western Qinling Mountains is hydrothermal cherts in the Cambrian Taiyangding Group. Organic geochemical study of the cherts shows that the organic precursors intimately associated with gold are marine bacteria and algae. The gold content in chert,is positively correlated with the amount of bacterial and algal microfossils, and simulation experiments on biomineralization of modern bacteria and algae indicate that bacteria and algae played an important role in the formation of the La' erma gold deposit.