The ore deposit of Wutublake Iron Mine belongs to steeply dipping, medium thick and low-grade orebodies. As the mining method used to be sublevel drilling and stage stoping, the rate of recovery is too low to recover economically. Regarding the characteristics of occurrence conditions, the decision was made to improve the structural parameters of the existing method and add a pillar recovery process to the modified method. The new mining method is carried out as an industrial test, it indicates that the ratio of extraction-to-cut is 42.4 m3/(103t), and recovery rate has increased to 85% from 75%. It shows that the main techno-economic indexes including production capacity has been improved significantly.