Abstract: The E-W-trending Shahe fault belt, composed of 2 or 3 compression and shearing faults, is distributed in Kaiyuan area, Northern Liaoning Province. The authors recognized a ductile shear zone on the south and parallel to the Shahe fault belt, in which gold ore bodies were found. Study shows that the ore material is derived from mainly the Neoarchean metamorphosed plutonic intrusive rock. The ductile shearing structure developed in the massif margin provides favorite physical and chemical conditions and spaces for gold deposition. The strength of the ductile deformation controls the degree of gold mineralization.