The overburden 200 m thick in Galinge area makes it hardly possible to carry out geological work, and the limited drilling work has added difficulty to the deep ore body exploration. Based on previous work, the authors employed wavelet transform to analyze the plane magnetic anomalies and found that the details at 1st scale and 2nd scale of the wavelet highlights the characteristics of a fault in the vicinity of Line 3. Meanwhile the 2.5D inversion method applied on Line 3 showed that the fault does exist, and this has later been confirmed by drilling. Besides, the authors found that the 4th detail of wavelet analysis is a regional anomaly, whose depth might be 456 m below the surface. It is thought that there may be no magnetite body below the depth of 456 m. The authors also conducted forward calculation for Line 5 located in the anomaly center, and found no residual anomaly, suggesting the nonexistence of hidden deep ore bodies. The authors have obtained a deep understanding of the geological conditions by application of wavelet multi-scale analysis and 2.5D inversion method to the magnetic anomalies, and this approach can provide the strongest evidence for further drilling work.