Large reserves of gold deposits have been reported from different parts of Iran, specially at the Neishaboor area which is very high grade approximately 4 ppm in nature, but the characterization studies must be carry out before beneficiation. For mineralogical composition, the nature of the minerals, type of Gold, chemical characters and the suitable mesh of grind play a vital role in finding out suitable beneficiation techniques. The representative samples were subjected to detailed mineralogical, sieve analysis, chemical analysis and liberation studies. The results show that, the ore is oxidized and gold may be present partly in the form of solution in quartz veins as well as in the form of free particles, in iron hydroxides specially, hematite which is the product of pyrite oxidation. The SEM studies also confirm the mineralogical studies. Quartz, hematite, calcite and feldspar are the main minerals present in the order of abundances. Sieve analysis and distribution of gold particles in different sieve fractions and also sink and float tests show that most of the gold particles are distributed bellow 2000 microns specially between 1500-2000 microns.