Abstract: This study is based on the characteristic spectrum of visible light to short wave infrared band induced by iron-bearing and hydroxyl-bearing minerals under ETM, by means of principal component analysis, first we selected proper principal component images of Xiongwu town, Luoping county, East Yunnan Province, then we processed them by averaging, signal filtering and density slicing, in the end, high-value, medium-value and low-value iron and argillation alteration information was obtained. Furthermore, in combination with stratigraphic, structural, geochemical anomaly and heavy sand anomaly information, metallogenic prognosis by remote sensing is conducted, finally we delineated one Level 1 Cu-Mo-Hg, one Cu-Mo, one Level 2 Cu-Zn, one Level 3 Zn-As-Sb and one Level 3 Fe-Cu prediction area, which provides future direction for further general prospecting.