Abstract: Spacebome Deposit Signature (SDS) modeling is a new concept, which is a result of the application of remote sensing techniques in ore exploration. In this study, features of various ore-controlling factors and their recognition criteria were studied based on the interpretation of spaceborne data (Landsat MSS, TM and ETM+ imageries), geology, and gold mineralization patterns. Then, the following procedure was used to develop the model:1) choosing appropriate image processing techniques; 2) studying the major ore-controlling factors (structures, formations, alterations); and 3)determining the recognition criterion, establishing deposit image model and optimizing target areas. The optimization of target areas using the model was successfully achieved. Satellite image processing revealed strong alteration signatures for potentially economic gold deposits at three new sites (i. e. North, Middle, and South zones). It is concluded that such strong signatures clearly merit further investigation using more sophisticated airborne data sources such as radar. Three predicted areas proved to be gold-mineralized, for they are similar to those discovered by other geologists with conventional (geochemlcal and geophysical) exploration methods. Considering the case of the Paishanlou area, this paper illustrates that satellite data can play an important role in gold reconnaissance.