Remote Sensing technology has its potentiality in occurrence and mapping of mineral resources on surface of the earth. Study of light interaction phenomenon of Remote Sensing lead several geological investigations in discrimination of banded magnetite quartzite (BMQ) deposits and associated lithology (limestone, greywackes, Mn and Fe rich phyllitic chert, basic Meta basalt and basement granitic gneisses, granitoids and migmatites) in part of Chikkanayakanahalli schist belt, India. In the present study, the deposits and associated different rock types of the region are validated using low-cost medium resolution Landsat Enhanced Thematic Mapper plus (ETM+) Satellite Image. The digital image processing techniques such as Principal Component Analysis (PCA) and band ratios analysis are studied and showed the potential for mapping the surface deposits. The result of RGB images of Principal Components (R: PC1, G: PC2, and B: PC3) and band ratios used in mineral and hydrothermal analysis by discriminating the BMQ deposits and other rock types. The study demonstrates the capability of low-cost satellite image, potentiality of image processing methods.