In order to meet the demand of mineral resources in national economic construction, China has strengthened the deep mine investigation. Based on an analysis of the geological environment and ore-forming conditions of Hengge area in Panzhihua with the emphasis placed on aeromagnetic anomaly, ground high-pecision magnetic survey and drilling work, the authors accurately predicted the existence of a large-size vanadium titanomagnetite deposit according to magnetic anomaly characteristics. It is thus held that magnetic anomaly characteristics constitute an ore-rospecting model for predicting large-size ore deposits, and also serve as a most effective means for deep iron deposit exploration.