Abstract: The Duiershan copper deposit is formed in the contact place between Early Paleozoic basic gabbro and basalt in Northern Qilian, which is located in Nanshan island arc belt. The ore formed in sideronitic texture and has the similar characteristics of Magmatic deposit formation. The CD-3 magnetic anomaly has been delineated in 1/50000 geophysical anomaly verification, whichis caused by gabbro, spreading in planar distribution with moderateintensity between-644-417nT. While the CD-1 and CD-2 magnetic anomalies are 0.5-1.2km northwest of CD-3, and all of them have the similar characteristics. It's concluded that CD-1 and CD-2 magnetic anomalies are related to gabbro. Two nickel oreoccurrences havebeen found in the east and west sides of CD-3 magnetic anomaly, with the similar geological background, mineralization characteristics, as well as geophysical and geochemical abnormity. Moreover, for the No. 36 anomaly of 1/50000 stream sediment had been delineated in CD-1, the major element is concluded as the copper anomaly,which was caused by copper mineralization. In conclusion, the Duiershanarea has a great potential for prospecting the magmatic liquation Cu-Ni deposits.