Geochemical and gemological characteristics of serpentine jade (Yuanyang Jade) samples from Yuanyang Town of Wushan County in Gansu Province were identified, analyzed and studied. The results show that Yuanyang Jade is serpentinite formed by superimposed alteration of Mg- and Fe-rich pyroxene-peridotite through post-magmatic multiphase hydrothermal activity, with serpentinization being the main mechanism of the alteration. The main mineral of Yuanyang Jade is serpentine, mostly lizardite. The minor minerals include tremolite, talc, dolomite and metallic minerals composed of magnetite, limonite and hydroniccite. The jade samples are dark green or blackish green in color and have fine texture, suitable for grinding into such handicrafts as jade cups for wining and jade bowls. There are transport facilities in the mining area of Yuanyang Jade, and the mining cost of the ore is low, thus constituting a good developing prospect for the jade.