Abstract: The characteristics of geology, remote sensing, geophysical and geochemical anomalies, and accessory minerals of kimberlite in Yuanjiagou, Wafangdian, Southern Liaoning Province are similar to those of Toudaogou area, which is a well known diamond ore field nearby. Particularly, the new metallogenic concept of kimberlite dike breaks through the traditional theory of kimberlite pipe. The new understanding on the origin and occurrence of diamond expands the potential for hidden ores. Study on the metallogenic laws of the Yuanjiagou area shows a great prospect for primary diamond deposit.