The Sanhetun tellurium-gold (Te-Au) deposit, located in the Duobaoshan polymetallic metallogenic belt (DPMB) within the eastern section of the Central Asian Orogenic Belt (CAOB), is a newly discovered small scale gold deposit. The mineralization, with resource of ≥ 4t Au, is mainly hosted in 3 NNE-trending alteration zones between granitic mylonite and volcanogenic-sedimentary formations. It’s the genesis and timing of formation of this deposit are poorly constrained. Here, we report the results of petrographic studies, TESCAN Integrated Mineral Analyzer (TIMA), major and trace element concentrations, and in situ S isotope of pyrite and U-Pb ages of calcite. The results show that there are five species of telluride, including native tellurium, tetradymite, tsumoite, hessite and petzite and four types of pyrite, including coarse-grained euhedral Py1, fine-grained quartz-Py2 vein crosscutting Py1 and anhedral aggregated Py3 and Py4. The pre-ore Py1, containing negligible Au, Te and other trace elements, have a relatively narrow range of δ34S values ranging from -1.20 to -0.57‰. The Py2 have slightly high concentrations of Au and Te and distinctly high concentrations of Mo, Sb, Zn and Mn with markedly positive δ34S values of 4.67 to 14.43‰. The main ore stage Py3 contains high Au and Te concentrations and shows narrow δ34S values ranging from -5.69 to 0.19‰. The post-ore stage Py4 contains low Au concentrations with the δ34S values ranging from 2.66 to 3.86‰. Calcite from ore stage yield a U-Pb age of 135 ± 22 Ma, interpreted as the age of Te-Au mineralization. Our geochemical and geochronological data indicate that the Te was derived from partial melting of mantle metasomatized by the Te-rich fluids that originated from oceanic sediments. We correlate the tectonic setting with the subduction of Paleo Pacific plate in Early Cretaceous.