Based on geological background, structure-control characteristics, spatial location, altered rock assemblage, ore structure and texture of Cr deposits in Selugwe area a hypothesis is put forward that the deposits are formed by supercritical fluid of H2-CH4. During intrusion of Archean ultra-basic complex the H2-CH4 –rich supercritical fluid moved to shallow crust along structural zone and incorporated with water and Cr-spinel is formed from reaction of H2-CH4 with water as the lenticular Cr deposits.