The Kunyang Aulacogen is a continental rift which initiated at the beginning of the Middle Proterozoic. Itwas generated on the rigid continental crust represented by the crystalline Kangding Complex, and is boundedby two N-S-trending deep faults--Anninghe-Luzhijiang Fault and Xiaojiang Fault. Its early stage of rupturewas characterized by alkalinc mafic igneous activities in the Dahongshan Group and Hekou Group. Duringthe later tensile-depression stage the aulacogen evolved into a graben where scdimentation of the KunyangGroup took place. The sedimentary sequence comprises terrestrial red beds, algal dolomite, marine black shaleand carbonate rocks which are quite typical of rift sedimentary association, and contains stratabound copperdeposits of the well-known Dongchuan type.