Layikeleke iron — copper deposit is a high grade deposit which is recently discovered in coverage area of Qiongheba area in east Junggar , Xinjiang autonomous region. The content of TFe in the ore body is in an average of 51%, Cu over 1%, and associated with gold. The deposit characteristics are shallow, high grade and high economic value. Through the analysis of 1∶50000 ground gravity, magnetic and IP data, the large scale integrated geophysical exploration has carried out in this area. A high magnetic, high density and middle— high chargeability body was confirmed under the Quaternary cover. Then a concealed skarn ore body under the Quaternary was discovered by drilling in the geophysical anomaly zone. The ore body which has a thickness of 8 to 32m and length more than 200m is located in the fracture of the lower Devonian volcanic rocks .the wall rock alteration developed,from inner(ore body) to outerside(wall rock) are Skarn lithification, epidotization and actinolite alteration zoning. The metallic mineral are magnetite and chalcopyrite, and the gangue minerals are mainly hedenbergite, diopside—salite, etc. The characteristics of the occurrence of ore body and the ore mineral composition show that the ore body is Skarn type. But unlike the normal skarn deposits, there are no carbonate rock and pluton around the ore body and no contact metasomatic environment. Base these information, we believed that the deposit was formed in the processing of crystal fractionation and replacement, when the skarn magma from deep intrudes into the tectonic fractures in shallow crust.