The Deerni copper deposit is one of the largest in Qinghai province, China, with proven copper reserves of 0.556 Mt. To explore new copper orebodies, we conducted a geological study at western Deerni focusing on hydrothermal alterations and ore-controlling structures. Field investigation shows that the deposit is hosted mainly within the central segment of the Deerni ophiolite. Additional hosts include Lower-Permian slate, limestone, gabbro and volcanic rock, as well as the contact zone between granite and slate. Such observations indicate that the Deerni copper deposit is not only associated with the ophiolite, but its formation is also controlled by faults. Alterations including serpentinization, carbonatization, silicification and malachite, and magnetite mineralization occurred along fractures within the wall rocks and surrounding strata. This means the alteration post-dated structural activity that affected the Lower Permian strata in the region. The Deerni copper deposit is controlled by the NW-striking faults. This is evidenced by (1) slate fragments and breccias within the orebodies, (2) saw-toothed boundaries between the orebodies and host rocks, (3) copper ore veinlets and (4) striations and step patterns on the orebody surface and hanging-wall-hosted quartz veins. Mineralization controlled by NW-trending faults suggests a major orebody (‘No. 2’) likely extends to either northwest or southeast. Field investigations along with geophysical and geochemical data, thus predicted the presence of concealed copper orebodies in western Deerni. Subsequent drilling projects have verified this prediction and revealed three concealed orebodies with widths of 7.15–13.87 m and Cu grade of 1.00–11.34 wt.%, adding 10,000 tonnes to the copper reserves.