The Shanggong gold deposit lies on the northern slope of the Xiong'er Mountain in western Henan. In an area of 1 020 km², 1:50 000 geochemical stream sediment survey was conducted. The sampling units were divided according to the drainage system. The sampling was carried out in accord with the principle "dense sampling in small ditches, relatively sparse sampling in tributaries, and no sampling in main rivers". This stream sediment survey was characterized by less sampling, large controlled area, rapidness, reduction in cost, manpower and material resources, and good ore-prospecting and economic results. Gold anomalies were detected in this stream sediment survey, and subsequent anomaly inspection, geological evaluation and drilling verification led to the discovery of a large-sized tectonic altered rock type gold deposit.