Although magnetic survey is a direct and efficient method for ore search, its effect is limited in the Galinge iron deposit of Qinghai Province. The reason is that thick cover and big depth of buried ore bodies characterize this deposit, thus the magnetic anomalies are of simple form that makes detection of deep concealed ore bodies difficult. Based on previous work, the authors used the wavelet multiple-scale method to analyze magnetic anomalies on the plane of this area. The authors discovered that five-order wavelet details are ore anomalies, and inferred that there may be magnetite bodies 500 meters below the surface. This case shows that wavelet analysis and human-computer interactive inversion methods provide a new approach to enlarge prospective reserves of the Galinge iron deposit.