Gold was determined by neutron activation method and then used as a direct indicator element for gold deposits in a promising gold area of Shandong Province; some encouraging data obtained in this test are summarized in this paper. The sensibility of neutron activation method for gold is 10-8 and the efficiency is 9 samples per diem.Induced potential methlod was also performed in this area. In Hedong mining district, a geochemical anomalous zone delimited by a threshold of 0.68g (gold)/t coincided satisfactorily with the induced potential anomaly and the ore body itself; in Wanger shan mining district, the geochemical anomaly was also in conformity with the ore body whereas no induced potential anomaly was recorded; in induced potential anomalies of an unknown area, gold as determined by neutron activation method detected two anomalies (No. Iand No. II), drilling has already discovered an ore body within No. 1 anomaly and will continue to verify the reliability of No. 2 anomaly.