Abstract: Chaihe Pb-Zn deposit in Tieling, Liaoning Province, occurring in the carbonate rocks in a sedimentary basin beside the central uplift basement in Fanhe aulacogen, is a typical epigenetic stratabound deposit. The Fanhe aulacogen, fault and fold structures, banded dolomite and breccia are main geological ore-controlling factors. The prospecting conditions include banded dolomite, geologic structures and karst breccia. The prospecting targets involve the areas above -300 m level and both sides of NE1 fault. The advanced geophysical exploration techniques should be adopted as tools for ore exploration.