In order to understand the physical characteristics of rocks and ores in Qihe, western Shandong and serve to basic geology and mineral resources investigation, the magnetic and density properties were collected in the survey area and the surrounding area, and statistics and analysis were given on the physical properties in terms of different kinds of rocks and ores. The result is that magnetite has the maximum value of magnetic property, the values of magnetic properties of basic rocks are bigger than the intermediate-acidic intrusive rocks, and the values of magnetic properties of sedimentary rocks are the smallest. The density of the Cenozoic strata is obviously different from formations and intrusive rocks under the covered area. Their interfaces cause the obvious gravity anomalies. The density value of magnetite is the biggest, and the density value of iron pyrite is the second biggest. The density of the metamorphic rocks of the Archeozoic Taishan rock group can cause certain gravity anomaly. Taking advantage of the relationship between the physical characteristics and the geophysical field, this paper mapped the lithology synthesizing other data, determined the ranges of metamorphic rocks and intrusive rocks, and delimited the ranges of ferromagnetic geological bodies as the target prospecting areas. Based on the physical characteristics, the depth and thickness information about the magnetite ore was inferred by conducting gravity and magnetic joint inversion. The result was nearly the same as the result of the verification borehole. The work of the research has promoted the understanding of physical characteristics of rocks and ores in this area, and provided more reliable basis for geophysical inversion and interpretation, geological structure and mineral resources research.