Four areas of ore prospecting for the iron ore deposits in the Panzhihua-Xichang zone, southwestern Sichuan are delineated according to regional geology, distribution of the ore deposits, geophysical properties and remote-sensing interpretation. They are the Lugu(in Mianning)-Dengxiangying(in Xide) iron-rich ore prospecting area, Kuangshanliangzi-Niuchang(in Yanyuan) iron-rich ore prospecting area, Taihe-Panzhihua vanadio-titanomagnetite ore prospecting area, and Xinglong(in Dechang)-Longquan(in Huili) iron ore prospecting area. The key types of iron deposits for the further exploration should be concentrated in the late-magmatic differentiational iron deposits and volcanic-sedimentary-metamorphic iron deposits.