Nanchou iron deposit is a small limonitel deposit in Linzi, western of Shandong province. The form of orebody is bedded or stratoid vein. The mass of ore is a small size orebody which vary in thickness and grade. The main natural type of limonite ore includes massive, honeycomb and pulverulent. The fault structure and wall rock are important in mineralization and ore-controling factor. The deposit is a middle-low hydrothermal type deposits related to metasomatic filling-weathering and leaching processes. The interlayer and deep location of the main fault structure have preferable prospect of limonite exploration.