Abstract: The Lala district is the important copper producer in southwest China, and it is vital to study the metallogeny and potential in copper deposits of this district. These copper deposits are iron oxide copper deposits, which related to volcanic eruption of the Hekou Group. These deposits are hosted in sodic volcanic rock series and distributed in multi-layers as clustering and banding. These deposits contain economic amount of Au-Mo-Co-REE-Fe. The ore-control factors and ore-hunting indicators results show that the South and North prospect areas of F₁ fault have potential of ore deposits.