Increasing iron ore demand of Turkey has brought up re-evaluation of Hasancelebi Iron ore deposit that has been evaluated using classical methods and considered uneconomic before 1984. The content of this article is one part of this re-evaluation process. In order to evaluate an ore body, its block model should be generated. The most commonly used method for block modelling is geostatistics. Geostatistical study starts with the structural analysis of an ore deposit that requires four main steps; the critical review and elementary statistical analysis of the available data, the construction of the experimental variograms, interpretation of the experimental variograms, and fitting the proper mathematical function for the experimental variogram. All of these steps are essential for meaningful variogram model. This research deals with how the structural analysis of the Hasancelebi iron ore deposit of Turkey was completed. For this purpose, first of all the mineralisation of the area was discussed, then experimental and model variograms were constructed by using data representing the area above 930m level, and finally coincidence of geologically defined mineralisation with the result of variogram analysis and interpretation of experimental variograms are discussed. Spherical models were fitted to experimental horizontal variograms. Vertical variograms indicated a grade trend. This trend exhibits the need f or further exploration program in the lower level of deposit. The result of this program will be helpful in defining the quality and quantity of ore deposit below 930 m.