On the basis of the geological and geochemical studies, including chemical analysis of bulk rocks, rare-earth and trace element studies, fluid inclusion, and S and O isotopic analyses, the authors described the geo-logical background of the deposit in detail and presented significant proofs for the conditions of formation of the Shaxi porphyry copper-gold deposit. Compared with other large and supper-large porphyry copper deposits in China and the adjacent Cu-Au mineralized areas, the ore-forming processes and conditions were analyzed; and the possibil-ity of forming large porphyry copper deposits in the Shaxi area was discussed. The present study indicated that the ore-forming fluid and material were mainly of magmatic origin, while meteoric water played a certain role in the ore-forming processes. Interactions between subducting and overriding plates provided a major driving force for the formation of igneous rocks and the deposition of metal elements in East China since Jurassic. Based on the geo-chemical data of the Shaxi intrusive, it is found that the copper (gold) mineralization is closely related to the genesis of adakite-like intrusive in the Shaxi area. This adakite-like intrusive was formed in the subduction environment as a result of the subduction of the West Pacific plate toward the East China continent, where there is a great potential-ity to form a large porphyry copper deposit.