The major scientific goal of using satellite data for mineral prospecting in the study area was two-fold: (a) mapping geology, faults and fractures that localize ore deposits; (b) recognizing hydrothermally altered rocks by interpreting their spectral signatures. The lithology, properties, and geological relations of the rocks were key to understanding such varied phenomena as convection, melting and transport mechanisms, rock deformation and alteration, the sources of magnetic anomalies, and the hydrothermal circulation and formation of gold deposits. Satellite data were enhanced using the following techniques: band combinations, ratios, directional sharpening filtering, Laplacian transform, spatial convolution, and density slicing. By mapping a larger area, the Paishanlou Gold Mine was discovered to be located within an accommodation zone, with three significant populations of faults having bearings of 95, 145, and 180 degrees. Faults bearing 145 degrees make up the faults of the main shear zone. The faults bearing 180 degrees have large sinistral offsets, typically 1.5 km, and form a synthetic-antithetic set with the faults bearing 145 degrees, which have dextral displacements of tens of meters. In the Landsat ETM+ image composed of bands 7-4-2 RGB, gneiss rocks were clearly seen as red purple, and granitic and plagioclase bodies in pale brown/pink. The strongest alteration signature in the image was found along the detachment fault antiform located closest to the mine and the plutons responsible for the Paishanlou gold mineralization. Satellite image interpretation coupled with field surveys led to the identification of iron mineral composites, hydrothermally altered areas, fractures, and an accommodation zone. These anomalies finally resulted in the discovery of three new gold-mineralized sites.