The study area is located in the Neoproterozic metavolcano-sedimentary assemblages of Megadornbelt within Adola belt of southern Ethiopia. Nickel mineralization is hosted and confined byrnserpentinites. The country rocks are tremolite talc schist and talc tremolite schists. Geochemistryrnof the host rock and country rocks is studied. All units shows LILE Enrichment (Ba/Yb)n is 2.92rn(serpentinite), 1.2(talc schist), 3.84 (tremolite schist) and 3.2 (amphibolite). Because these LILEsrnare fluid mobile and easily assimilated from the subducting slab as compared HFSEs. REEtrncalculated as serpentinite (0.7 â€“ 1.84 ppm), talc schist (2.69 ppm) and tremolite schist (2.79)rnwhile amphibolite has REEt (6.18). (La/Yb) c.n values are serpentinite (4.2), talc schist (6.6),rntremolite schist (3.7) and amphibolite (8.1). Slight enrichment of LILE and LREE and depletionrnof HFSE and HREE for both serpentinite, talc tremolite schist and amphibolite is due tornassimilation and dehydration of subducting slab. Magmatic evolution undergone withoutrnamphibole intervention and plagioclase crystallization. Both ultramafic and mafic rocks arerncrystallized from similar origin. The geochemical signature of both the mafic and ultramaficrnrocks is similar to alkaline thoeliitic and island arc thoeliitic bonnieite. Tectonic discriminationrnshows island arc boninite andesite affinity. Meta sedimentary rocks are also common in the studyrnarea. These are quartzite, meta psmmite and graphite schist. Both metavolcanic andrnmetasedimentary rocks are metamorphosed to greenschist facies. Because the mineralrnassemblages are antigorite, lizardite, talc, tremolite, actinolite, chlorite, epidote, sericite andrnhornblende. The rocks are aligned NS and dips towards 700 towards W. The deposit is zoned intorntwo. These are oxide zone and saprolite zone. Oxide zone is upper portion of the lateritic columnrnwhile saprolite covers the lower part. The occurrence of the mineralization in these zones isrnvariable. Inferred resources estimation is done for these zones separately. The source of the Ni isrnserpentinites. The metal is leached from oxide zone and serpentinites and precipitated in thernsaprolite as garnierites. The mineralogy of these garnierites is studied. Both serpentine-like andrntalc-like garnierites are observed. Other ore minerals observed are chromite and magnetite. Therngenesis is formulated based on geochemical and mineralogical characteristic of garnierites. Therndeposit model is ultramafic hosted lateritic nickel deposit hosted. Ore body Morphology, extent,rnmineralogy and geochemistry are studied and explained.