Xinzhai sandstone-type copper deposit located in northern Laos lies in the Jiangcheng-Phongsaly-Phrae Mesozoic basin (JPMB), which is regarded as southern extension of the Lanping-Simao Mesozoic basin in China. The copper deposit belt is bounded by the Ailaoshan-Heishui River fault and the Dian Bien Phu-Luang Prabang fault at the east and Lancang River- Bannankan faults at the west. Two types of orebodies are identified in the Xinzhai area based on geological investigation. One is lamellar copper orebody hosted by the fine lithic feldspar sandstones and feldspar lithic sandstones; another is vein-type orebody. The sulfur isotopic compositions of the chalcopyrite and tetrahedrite are from -11.6 parts per thousand to -1.8 parts per thousand, indicating that sulfur is derived from bacterial sulfate reduction (BSR). H2O values of fluid inclusions in ore-bearing quartz samples are from -99 parts per thousand to -78 parts per thousand. The calculated 18OH2O values of ore-forming fluid vary from -2.3 parts per thousand to 0.4 parts per thousand using the quartz-water fractionation equations and the mineralization temperature. Oxygen and hydrogen isotopic compositions show that the ore-forming fluid was derived from basin fluid. Rock-mineral identifications show that both of the mineral grain maturity and the structural maturity are high in the Jurassic Huakaizuo Formation, reflecting a far-source accumulation and lake facies sedimentatary environment. Based on tectonic determination diagram of the Al2O3/SiO2-TFe+MgO, the sandstone samples collected from the Huakaizuo Formation were plotted in the passive continental margin. The collision of the Indian and Eurasian blocks during the Cenozoic formed large-scale strike-slips and thrust nappe structures in margin of the basin. With the tectonic movement, Cu-rich basin fluid from the basement of basin migrated upward along the contemporaneous fault and into the high porosity strata. At the same time, in organic matter-riched condition, bacterial sulfate reduction (BSR) has been triggered, forming a large number of S2- ions, and then precipitation of sulfide started. This mechanism describes the process of copper mineral deposition in the Xinzhai deposit.