Pariz area is chosen as a test area to evaluate remote sensing data and application of these data in exploration. Eight known mineralization sites were chosen in the area, which have mainly porphyry type mineralization. SPOT images in XS mode are used to study geology as well as hydrothermal alteration in the Pariz area. Here, soil and vegetation cover is substantially poor. Different approaches such as band ratioing, principal component analysis, I-S-H, decorrelation processing, digital filtering and hybrid composite were used to enhance the diagnostic features associated with the lithologies as well as the hydrothennal alteration. Color combinations of the principal components, I-S-H transformation and 2/1 ratio have proved to be the best image enhancement techniques for geological studies in such areas. Lineament analysis has shown that the areas with known ore occurrences and also the hydrothermally altered areas, are closely associated with the higher photo lineament factor values. There is also a good correlation between the geophysical and remote sensing data in the area.