Kumukuli basin in the Xinjiang Uygur Autonomous Region is located in the eastern section of East Kunlun. The basin is 350 km long from east to west and 20~75 km wide from north to west. Geological setting of ore formation is excellent. More than 20 orebodies and 50 mineralizing bodies have been found. Predicted future resources are about one million tons. Regional geological tectonic is complicated. The ore-forming materials mainly originated from magmatic rocks and mineralized copper bodies. Ores were deposited in the transition period of changing environment, and suffered later alteration. Ore genesis on origin, sedimentary environment and later alteration is analyzed.