The Ali-Abad copper deposit occurs in volcanic arc setting hosted by an Oligocene porphyrytic granite which intruded by a series of the Miocene quartz-monzodiorite to granodiorite rocks. These intrusions were emplaced into late Cretaceous and Eocene sedimentary, volcano-clastic and volcanic rocks. Trace and major element with petrography data suggest that all copper bearing intrusions are I-type volcanic granitoids. Four hydrothermal alteration zones have been recognized in the porphyritic intrusions and surrounding rocks: potassic and phyllic zones are mostly in the granite and granodiorites, argillic and propylitic zones are extends into surrounding rocks. Several highly silicified zones crop out at central parts of the granite. Chalcopyrite-magnetitepyrite- bornite- chalcocite- sphalerite and galena have been recognized in hypogene and supergene zones, occurs as disseminations, vienlets and segregations in the surface and depth. Ore geochemistry shows good positive correlations between Cu, Mo, Pb and Zn. It may be result of similar geochemical behavior of these metals in the hydrothermal fluids and mineralization process. The fluids had temperatures of 200 to > 600°C and salinities of 2 to 60wt% NaCl. The emplacement of intrusions, alteration and mineralization is structurally controlled by two sets of faults which trend NW-SE and NE-SW. This study identified the Cu-Mo mineralisation at Ali-Abad area as a typical porphyry Cu-Mo deposit, formed in an arc-related environment during the Mid-Cenozoic.