Sheikh-Ali copper deposit is located 300-km southeast of Kerman in an “ophiolitic coloured melange” complex at the southeastern part of the Zagros Crushed Zone. The rock units mainly consist of pillow basalt lavas, diabase, pelagic limestone, radiolarian chert, calcareous sandstone and graywacke of Upper Cretaceous age. These units locally have an east-west trend and are emplaced as a slice between serpentinite and other ultrabasic rocks such as dunite and harzburgite, through thrust fault contacts. The country rock which hosts directly the ore horizon is a brown to red goethitic silica horizon. The silicic ore horizon was deposited stratiformly between the pelagic limestones and embedded by the pillow basaltic lavas. Chloritic and propylitic alterations can be seen in the surrounding rocks. The geometry of ore is lenticular and the lenses are conformable with the pelagic limestones, as well as pillow basalt lavas. The mineral paragenesis mainly includes pyrite, chalcopyrite, sphalerite, specularite, silica, quartz and calcite. The ore textures are massive, laminar, colloform, disseminated and rarely veinlets are present. The silicic ore horizon is about 550 meters long and 0.7 to 8.5 meters thickness. Mean and maximum content of Cu in massive ore is about 2.5 and 4.8 percent, respectively. Maximum content of Au and Ag in massive ore is about 0.64 and 75 g/t, respectively. Geochemical studies show excellent correlation between Cu and Zn in different parts of the ore body. Furthermore, the REE patterns are similar in both the pillow basalts and the ore bodies. Geological, lithological, geochemical and ore paragenesis studies suggest that the deposit can be introduced as a Cyprus-type (Ophiolite-hosted) VMS deposit, resulting from submarine volcanic exhalites and fumaroles, synchronous with the formation of country rocks.