Wulagen lead-zinc deposit is located in the northern part of the southwest depression of Tarim basin, Wuchia County, Xinjiang. It is considered as a sandstone-hosted type, with the proved and prospective reserves >10 Mt (metal Pb-Zn) of Pb-Zn of 3.62%. The layer ore bodies, with >3km of length and 10~50m of width, occur between the Lower Cretaceous Kezilesu group (K1kz) of the red sandstone and the thick gyprocks of Paleocene Aertashi formation. It’s grey in color, and is the result of the decolored alteration and mineralization of red sandstones, which have the widespread occurrence on top of K1kz in the north of the depression, 140km in length and 100~300m in width. The hangwall of the ore is breccias rock resulted from collapsed dissolving gyprocks. The light brown sphalerite, galena, minor marcasite, pyrite and chalcopyrite are very fine or colloid structure contaminated in the cement of the sandstone. Minor coarse galena occurs in vein. The Gangue minerals include calcite, dolomite and some sericite, etc. There are a lot of asphalt and organic matter in the fluid inclusion in the lead-zinc ore, which shows that the migration and precipitation of lead and zinc is related closely to that of oil and gas. The ore forming of the lead-zinc deposit is result of regional migration of the basin brine when Tarim basin was separated from paleo-Mediterranean during early Himalayan movement, Oligocene-Miocene. The lead and zinc of the deposit precipitated form the basin brine, the sulfur of the ore was likely derived from the bacteria reduction of sulfate from the dissolving gyprock of the hangwall. The genesis of the deposit belongs to epithermal type related to basin brine.