The study area, Ashashire prospect, is located, in Benishangul-Gumz region western Ethiopia,rnabout 741 km west of Addis Ababa.rnField observation and petrographic study shows that the prospect comprises various units thatrninclude granite, plagioclase-muscovite (sericite)-quartz schist, quartz vein, actinolite-quartzchloriternschist, carbonitized chlorite-sericite-quartz schist and metasediments. Based on therncritical mineral assemblages, the majority of the units are metamorphosed to green schistrnfacies. Field observation and thin section analysis also revealed that the study arearnexperienced at least three phase of deformations that are manifested by various structures.rnFourteen samples are analyzed for major and trace elements using XRF method. Among thernvariation diagrams, only the graphs of K2O vs. Al2O3 and K2O vs. CaO show positiverncorrelation. On the other hand, K2O is negatively correlated with MgO, Na2O and SiO2.rnChondrite normalized (wood et al.1979b) spider diagram shows the pattern of the tracernelements, particularly the pattern of high field strength elements (HFSE) Zr, Ti & Y, arerngenerally similar, that implies the rocks are genetically related i.e. they have similar sourcernrock. The discrimination diagram (Ti vs. Zr) shows the majority of the rocks of Ashashirernarea have similar tectonic environment as rocks formed in island arc tholeiites, calc-alkalirnbasalt and mid oceanic ridge basalt (MORB) zone.rnStatistical analysis of AAS results of gold from forty samples showed a range of goldrnconcentration from < 0.02-48.5 ppm and mean value of 2.88ppm. The histogram indicatesrnabout 49 percent of the samples have shown anomalous Au value i.e greater than 0.5ppm.rnCorrelation value and the scatter diagrams of Au with the multi elements (Ag, Cu, Pb, Zn, Ni,rnCo and Mn) showed that gold has stronger positive association with silver (Ag) only.rnBased on field observation and textural relationship of ore minerals the gangue minerals thatrnconstitute the host rock are formed in the earliest phase and followed by magnetite hematite,rnilmenite, pyrite; chalcopyrite and gold are crystallized respectively.rnThe geological and structural setting, host rock alteration and gangue mineralogy arernsuggestive for a shear-zone hosted orogenic-gold type deposit at Ashashire.