At Qingshuiquan-Huaquanzi area in the central part of the southern edge of Altun region within Xinjiang, the anomalies of stream sediments are mostly distributed in banded form along fault zones, and basic and ultrabasic complexes are major factors responsible for the formation of large and strong anomalies. Based on an analysis of geochemical characteristics of rocks and trace elements as well as rare earth elements, this paper holds that they are products of crystallization differentiation of the same magma, that the major ore resource of this area is copper, and that gabbro-diabase is the main ore-bearing horizon. The concentrated exploration has resulted in the eventual discovery of copper resource of 150000 t.