Taoyuan-type copper deposit is in black carbonaeous shale and tuffaceous slate at bottom of Heishan formation. Trace elements characteristics of ore, Co/Ni ratio of pyrite and sulfur isotope analysis of pyrite and chalcopyrite indicate that the ore-forming hydrothermal fluid mainly comes from depth, a few from sea water. Characteristics of rare earth elements show a redusced metallogenic environment. Its main metallogenic phase is in late Jinning period when basic magmatism took place or later. Strata, litho-facies and paleogeography, structure, magma activity and mineralization concentration center are the ore-controlling factors.